A planned dairy farm on Kauai backed by eBay founder Pierre Omidyar announced a scaled-down approach on Friday in response to community concerns about the project.

The farm will launch with an initial phase that includes no more than 700 cows, less than half of the originally planned 1,800 cows.

The project of Hawaii Dairy Farms, which is funded by Ulupono Initiative, is intended to double Hawaii’s milk production once it’s fully operational.

Ulupono Initiative

The Ulupono Initiative is an impact investment firm backing Hawaii Dairy Farms.

Screenshot of Ulupono Initiative website

But the proposal has been highly criticized for its potential impact on the environment. Kawailoa Development, which owns a neighboring resort and golf course, recently filed a lawsuit against the farm, asking the court to declare it a nuisance.

“We want the community to know that we’ve heard its concerns and we’re planning a dairy that goes beyond compliance to ensure the operation is environmentally protective, adaptable to operating conditions and allows for future growth,” said Kyle Datta, general partner of Ulupono Initiative, in a press release on Friday. “We respect the regulatory process and the ability of our regulators to make good decisions. We continue to work with them to ensure we are meeting and exceeding all requirements under federal and state law.”

The press release described the farm as a “zero-discharge approach” that includes effluent ponds, an emergency containment berm and spillway, water quality monitoring and other environmental controls.

Ulupono Initiative is a social impact investment firm funded by Omidyar, who is also the publisher of Honolulu Civil Beat.

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