Thomas and Eva-Maria Kafsack's dream retirement was to move from their native Germany to Maui and open a bed-and-breakfast and horse-boarding stable on a ranch in Upcountry Maui.

The B&B has yet to be built because of permit issues, and the boarding stable has been closed. But that's only because the Kafsacks needed more storage space for their thriving goat cheese business, Surfing Goat Dairy.

The Kafsacks never imagined the goat cheese side of their business would be so successful. They had hoped that the horse stable and dairy would serve as attractions at the B&B, but their fresh goat cheeses have become so popular that the Kafsacks spend all of their time making the cheese.

BRANCHING OUT

When the first cheese was produced in 2002, the farm had 45 goats, made about a dozen different cheeses, and the Kafsacks were the only employees. Today, Surfing Goat Dairy has 120 goats (Eva-Maria knows the name of each animal), makes 32 varieties of cheeses, a chocolate truffle, relishes, marmalades and jams, and has a staff of seven.

Thomas Kafsack said the idea of a goat cheese dairy came up when they lived in Lahaina and realized that more and more restaurants were using the product. At the time, the cheese was used primarily as a garnish on salads.

"In 1999 I was checking out hotels and restaurants and asking them about goat cheese," he said. "They were slowly starting to think about using more goat cheese."

The couple moved out of their resort home and purchased 42 acres of kiawe brush land in Kula. They invested nearly $3 million to clear the land, build fenced pastures, a barn, riding trails and a 1,000-square-foot cheese processing plant.

The Kafsacks also bought 45 goats from a Big Island dairy that had gone out of business.

Not knowing much about making cheese, they spent a year traveling in Europe to learn how to produce different varieties of cheeses. Once back on the island, the Kafsacks realized the often humid climate meant certain kind of cheeses couldn't be made here.

The Kafsacks had to make adjustments in the way they made their cheeses, but also took advantage of the fruits and nuts that Hawai'i has to offer and developed their own unique flavors, such as their "MacGoatNut" and "Mandalay" flavors.

"Cheeses are very dependent on the environment," said the former owner of a software company. "Some of these recipes that worked in Denmark didn't work here because we have a totally different climate. Some of these cheeses that were perfect there tasted odd over here."

A SLOW START

Business started off slowly because the dairy had no electricity in the first year of business. With no power to operate the milking machines, the Kafsacks had to milk the goats by hand.

But once the power was turned on and the dairy was up and running, the Kafsacks began to experiment with the cheese flavors. They also began to market their cheeses to the major resorts and restaurants on Maui, as well as to four hotels on the Mainland.

Thomas Kafsack said a big advantage to having a goat cheese dairy in Hawai'i is the freshness of the product. The state's only other goat cheese dairy is on the Big Island, and Kafsack said the two can barely meet the demand.

"People want fresh goat cheese, and people want to eat healthier, and they want to know where it comes from," he said. "The other goat cheese that you can get in the supermarkets, that's several weeks old or sometimes even months old when it's flown in from France."

FRESH AND HEALTHFUL

Kafsack said cheeses that are made at his dairy are on local store shelves in two days. He said his cheeses are more healthful because he does not use pesticides or herbicides on his farm, so the goats aren't ingesting the chemicals.

He said the freshest cheese can be purchased at his Surfing Goat Dairy store, which is on his ranch. He said about 50 percent of the company's revenue is generated at the store, and he expects up to 40,000 visitors this year.

Kafsack said his business is feeling the impact of the drop in visitor arrivals to the island.

But while the number of Mainland and foreign visitors is down, Kafsack said, he's noticed an increase in business at his store from Island residents, particularly people from O'ahu.

"We are very lucky because right now we have much more traffic here, especially on the days when the Superferry does two runs per day," he said. "Last month was the best month that we ever had, and this was because we made over 70 percent of our revenue right here at the shop."

ISLAND-STYLE COSTS

Over the years, Surfing Goat Dairy also has had to deal with the high cost of doing business in Hawai'i.

Kafsack said that in 2002, a bale of hay cost about $12, and now he pays $28 per bale. He said he goes through four bales a day, more than he used to because of the drought conditions on the island.

"Dairies on the Mainland can produce goat cheese for $6 a pound. We, at the same time, are already at nearly $19 per pound, and that's just the cost to produce it," Kafsack said.

Luckily, he added, the restaurants that use his cheeses are willing to pay the higher price because of the quality. Goat cheese is no longer just a salad topping, he said.

"Chefs are developing a lot of new things, which are way beyond what you envisioned 10 years with what you can do with goat cheese," he said.

Kafsack said he never dreamed of the dairy being so successful. He recently had to shut down his horse boarding stable so he could expand the dairy processing plant there.

Although he and his wife often put in 70- to 80-hour work weeks, Kafsack said, he enjoys what he's doing.

"It makes you proud that you have such a product and are able, with such a small team and under these not-so-favorable conditions, to produce such a wonderful product," Kafsack said. "By having so many people coming over here, people who like this product, people who have so much contact with the animals here, they leave even more happier than they came. This is wonderful for us."