Why Does it Cost More to Produce Food in Cuba than Import?
Without offering solutions to this situation, Prime Minister Manuel Marrero calls on the agricultural sector to produce more.
HAVANA TIMES – “We need food and, above all, proteins,” insisted Prime Minister Manuel Marrero, before recognizing that, of the nine products in the ’family basket’, eight come from imports. Quite a novelty, since not even a month ago he said that 100% were bought abroad.
He reported this at a meeting of the Ministry of Food Industry, in the presence of his boss, President Miguel Díaz-Canel, and called on the agricultural sector to produce more. “The safest food comes from national production,” said the prime minister, who recognized, in the words of the State newspap Granma, “that its cost of preparation in the country is high, due to several distortions.”
Just 24 hours later, the provincial newspaper of Sancti Spíritus, Escambray, published an article dedicated to one of the great exceptions of the Cuban industry: shrimp, which along with lobster is the only fish product that does well in Cuba.
Despite the fact that, according to the data of the last five years, there is a decrease of 82% (from 7,200 tons in 2018 to 1,200 in 2023), the production of shrimp gives good results, but it is far from becoming that national protein sought by Marrero: it goes to the tables of foreigners or to Cubans with access to dollars.
“In the first months of the year, there is expected to be about 300 tons for export and internal sales in foreign currency,” says Escambray’s text. The newspaper spoke with Romny González Álvarez, director of Industry in the Fishery and Industrial Company of the province, located in Tunas de Zaza. He explained how the workers “get involved” in their “rigorous” work, which requires “strict quality standards so that it classifies as an exportable product within the international market, mainly destined for Europe and Asia.”
The manager says that on February 25, the crustacean began to be processed, from Júcaro, in Ciego de Ávila, and on the 28th, the batch from the Cienfuegos fleet arrived. All of them are raised through intensive cultivation on farms and give up to eight sizes, the smallest being 20 grams.
“Cienfuegos asks that its product report 92.5% for each ton of shrimp it sends, and here we achieve 95% or 96%, while Júcaro demands 94.1% but reaches 97%. In summary, we exceed what both suppliers demand from us and what is reinvested into economic results for our entity,” he explains, talking about how the seafood is used once received. All this, he boasts, is despite the fact that the machines have been failing, a problem solved thanks to the preparation of the workers.
While shrimp workers clean the product, destined for the exterior, Marrero “called for the removal of obstacles to fishing activity and highlighted the role of municipal governments in the search for agreements with fishermen,” says Granma. The last liberalization of the sector occurred in March 2014, when the Government allowed private fishermen to agree on sales without State contracts.
However, he specifically left out lobster and pink shrimp, which provide a considerable amount of foreign currency. The last year with available data is 2023, when the State received 62 million dollars for these foods. It’s not a huge amount, but it is for the meager amount of product it managed to achieve: 2,380 tons.
Marrero, in his regret for the lack of national production, reported precisely the large amount of money that the State must invest in buying mackerel because of the embargo: 3,000 tons of the fish “facilitated by an African country” had to travel 75 days “with very high costs.” To these hardships, Marrero added the problems of the Bucanero Brewery, which “could not open accounts abroad due to the delay in bank procedures, under pressure from the imperial power. In addition, Havana Club suffered losses of more than 40 million dollars.”
The president of the Business Group of the Fishing Industry, Osmani Barreiro Consuegra, mentioned the reduction of catches by 50%, without specifying the year and what amount was achieved. He regretted that the export plan remained at only 67%.
The Meat Company of Sancti Spíritus said it plans to increase in 2025 “the delivery of 17.4 kilograms per month to each consumer, although it is still insufficient.” It did not explain the basis for the optimistic calculation in the midst of a galloping crisis, nor did the Canning company of Ciego de Ávila, which “plans to rescue the productive poles.” On the other hand, the launch of a brand of soft drinks gave no details but reported that they will “try to conquer the Russian market.”
In the midst of such an ominous outlook, the ministerial authorities were optimistic, although it is not known what accounts they have made to present a perspective that is not bleak. The minister, Alberto López Díaz, said – in a confusing way – that a “growth of one-tenth in profits, 26% in the contribution to the State, and twice the production of the cooperatives” is expected. In addition, he proposed “nine collection products, with potential for more than 74,000 tons, and a reduction of the fiscal deficit by two-fifths.”
Meanwhile, the Island will continue to import a generous amount from the United States. According to the report published by Cuba Trade, in 2024 Havana spent 586.5 million dollars on its purchases from the United States, of which 433.8 million (74%) corresponded to food and basic necessities, chicken for the most part.
Translated by Regina Anavy for Translating Cuba.