A U.S. Grains Council (USGC) delegation visited Cuba this week to continue the organization’s ongoing exploration of the changing political dynamic and opportunities to open this market for further trade of U.S.-produced grains.
Led by Manuel Sanchez, manager of global trade for the Council, the team also included Daniel Secondi, head international merchandiser with Perdue Agribusiness, and Kurt Shultz, USGC director of global strategies. While in Havana, the group met with Alimport, the government importing agency, the Ministry of Trade, the Ministry of Agriculture and the U.S. Interest Section, the U.S. diplomatic presence in Cuba that operates the legal cover of the Swiss Embassy while the embargo remains in place.
“The Cuban government is very receptive to our mission and engaged us in looking to the future, past the embargo, to a time during which the United States and Cuba will once again normalize trading relationships,� Sanchez said.
“They had many questions about the Council’s work in countries such as Mexico and Morocco and how the Council partnered with local livestock producers to promote the growth and development of these sectors. There is an obvious feeling that there is a serious opportunity for change, but that sentiment comes with realism about the many hurdles to overcome before the embargo is lifted.�
Secondi, who accompanied the team, announced during the mission that his company had closed a sale with Alimport for 54,000 metric tons of soybeans and soybean meal, valued at approximately $22 million.
“Cuba imports approximately 900,000 metric (3.5 million bushels) of corn annually,� Shultz said. “Historically, Cuba imported from the United States, which is only a two-day sail from New Orleans. However, the embargo and a lack of access to credit has forced Cuba to import their corn needs from Argentina and Brazil, which is more than a 10-day voyage.
“It doesn’t make economic sense, but it’s the reality on the ground in Cuba. The embargo and especially the lack of access to credit are especially challenging for Cuba’s ability to do business with the United States even though we are a natural trading partner for them. Lifting of the embargo would bring tremendous benefits to both countries.�
In addition to meetings in the capital, a USGC contact in Miami arranged a visit for the delegation to Cuba’s interior to see a small pig and tobacco farm and get a sense of what life is like for the average Cuban. The farmer, Luis, and his family, mother and father raise pigs, tobacco and cattle.
Luis and his family members explained that they are given production quotas each year by the government, and anything above the quota is for their own use or profit. Even though Luis is new to pig farming, it was obvious he had done his homework in building his pig barn, which was well designed and housed pigs in excellent condition. Luis receives feed concentrate, including corn and soybeans, from a government-run feed mill. To supplement the pig operation, Luis’ mother and father work to produce tobacco for Cuba’s famous cigar industry.
“In reality, it’s a hard life,â€� Sanchez said. “You just have to look at their hands and faces to see what the years of hard work and sun has done. But they are very proud of their family and their work, just like farmers all around the world.”
Following the farm tour, the delegation was treated to a generous meal on the farm.
“Their warmth and hospitality was incredible and sums up my feeling that if we look past the embargo, the Cuban people and American people will benefit more from this embargo ending than for it to continue,� Sanchez said.
Moving forward, Council leaders will be able to use the information gathered on this week’s mission to further understand the Cuban market and develop a concrete strategy for U.S. producers in a post-embargo environment. The Council is also looking to engage the Cuban government and producers, like Luis, in helping Cuba expand its livestock production so that it can meet the basic needs of its population.
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