Cuba may import sugar, rum industry pressed amid disastrous harvest

[El Presidente]

https://www.straitstimes.com/world/cuba-may-import-sugar-rum-industry-pressed-amid-disastrous-harvest

HAVANA - The Cuban sugar harvest is winding down at the lowest tonnage since 1900, forcing the government to import and putting more pressure on its domestic rum, soft drink and pharmaceutical industries, according to official reports, two economists and a rum industry source.

President Miguel Diaz-Canel said at the end of April that the state-run industry had produced 71% of the 412,000 metric tons planned, or just shy of 300,000 metric tons, and would mill into May.

Cuba produced 350,000 metric tons in the last harvest and while some sugar mills remain open, yields drop sharply in May as hot, humid weather sets in, accompanied by summer rains.

 

“This means we will have to import and, of course, less sugar means there is less syrup and alcohol for various industries and, of course, rum,” said Cuban economist Omar Everleny.

The communist-run Caribbean island nation was once the world’s top sugar exporter, and produced 8 million metric tons of raw sugar in 1989, before the collapse of its former benefactor, the Soviet Union, sparked a steady decline.

Everleny said government data released this week showed the production of sugar cane-based alcohol used for various products from rum to pharmaceuticals was down more than 50% since 2019, as was most manufacturing since tough new U.S. sanctions and the COVID-19 pandemic gutted the import-dependent country’s foreign exchange earnings and kicked off a grueling economic crisis that continues today.

The crisis has dramatically reduced supplies of fertilizer, fuel and other inputs needed to grow and harvest cane and spare parts for mills, devastating the harvest.

 

Cuba has historically consumed up to 700,000 metric tons of sugar annually and exported the rest.

Unlike the pharmaceutical sector and other industries that can import sugar-based raw materials, rum makers must use Cuban ingredients to maintain brand identity.

For the rum industry, domestic alcohol prices are up 46%, a well-placed industry source said, requesting anonymity.

Some Cuban mills opened briefly this season just to produce molasses that can be distilled into alcohol for rum, and that did help, the source said, ”but comes nowhere near solving the issue. The situation is dire.” REUTERS

 

[VeguerosMAN]

Still, there is nothing like raw brown Cuban sugar.

[helix]

Never seen it coming eh Diaz ? Introducing the new and improved Havana Club, 50% more expensive and made exclusively with 100% Beet sugar imported from France. We are sure you will love it. 😏

[NSXCIGAR]

Next up: tobacco imports! 

[SCgarman]

6 hours ago, NSXCIGAR said:

Next up: tobacco imports! 

Which conspiracy theorists have been saying has already been happening for years!🤪

[Arabian]

10 hours ago, SCgarman said:

Which conspiracy theorists have been saying has already been happening for years!🤪

I heard that but the rumour goes it failed miserably. The end product was awful. 

[Li Bai]

10 hours ago, SCgarman said:

Which conspiracy theorists have been saying has already been happening for years!🤪

What I was going to say 🤣😂

10 hours ago, Arabian said:

I heard that but the rumour goes it failed miserably. The end product was awful. 

Exactly what I've been told too (with Nicaraguan tobacco).

[Puros Y Vino]

Nica tobacco being delivered on speed boats in the dead of night has been popular NC fud for years. The reverse has also been claimed.  

[Li Bai]

7 hours ago, Puros Y Vino said:

Nica tobacco being delivered on speed boats in the dead of night has been popular NC fud for years. The reverse has also been claimed.  

Personally, I have no way of checking things out but a good friend of mine who used to go every year to the Habanos festival (before it was what it is now) had good friends in the CC industry who told him that off the record.

For what it's worth...