Sugar Industry Collapse in Cuba
By AgroLatam (Progreso Weekly)
HAVANA TIMES – Cuba’s sugar industry, a symbol of its economy and culture for over a century, is experiencing a historic collapse. For the first time since the 19th century, annual raw sugar production is projected to drop below 200,000 tons in 2025, according to official reports and estimates from industry sources.
The state-owned company AZCUBA projected reaching 265,000 tons this year, but the harvest will end at least 100,000 tons below that figure, according to data compiled by Reuters. In 2023, the island produced 350,000 tons, which is already dramatically lower than the 1.3 million tons recorded in 2019.
Cuba exported 8 million tons of sugar in 1989 during its golden age. Today, it must import more than it produces, which is unprecedented for the island.
The situation directly affects one of the island’s export treasures: Cuban rum.
For rum to be considered authentic, it must be made with alcohol derived from Cuban sugarcane, a requirement that is becoming increasingly harder to ensure.
According to Cuba’s National Office of Statistics and Information, the production of 96% ethyl alcohol, essential for distilling quality rum, has decreased by 70% since 2019, falling from 573,000 hectoliters to just 174,000 in 2024. Another type of alcohol used in other rum varieties also experienced a similar decline.
“Since rum needs aging time, we’re drawing on reserves. But the big question is: are we going to have new reserves in the future?” a foreign businessman linked to the sector told Reuters on condition of anonymity.
Of the 13 sugar-producing provinces:
- Sancti Spíritus was the only one to reach its goal, achieving 19,000 tons.
- Villa Clara achieved only 38% of its target of 27,000 tons.
- Cienfuegos achieved two-thirds of its planned 38,000-ton target.
- In the east, Las Tunas produced only 5,000 tons, barely 11% of the planned output.
Official reports frequently note industrial failures, a lack of fuel and lubricants, and outdated infrastructure. They detail a fractured production chain with no clear prospects for improvement.
The fall of the Soviet bloc, the island’s primary economic partner, marked the turning point that triggered the decline of the Cuban sugar sector. Since then, a combination of international sanctions, production inefficiencies, and shocks like the pandemic have led the country to a critical situation.
The country’s reliance on sugar as a source of employment, foreign currency, and national identity is now confronting an unprecedented decline.
What comes next?
With the mills operating at half capacity and summer rains worsening operational issues, experts see no short-term prospects for recovery. Sugar imports, unthinkable decades ago, will be the only way to prevent a total collapse in critical sectors such as domestic consumption, exports, and rum production.
Taken from Agrolatam.com. Translation to English by Progreso Weekly.