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Iowa farmers think Cuba has plenty of market potential Tuesday, October 23, 2007
Agri News staff writer
JOHNSTON, Iowa -- In Cuba children under 8 and adults over 65 are allotted one liter of milk per week. For the rest of the Cuban population, milk is scarce.
Growing the dairy industry is a priority for Cuba where "food is very precious," says Bill Northey, Iowa Secretary of Agriculture, after his first visit there.
He sees a growing market for Iowa corn, distillers grains and other ag products as Cuban dairy and livestock production increase.
Northey traveled to Cuba in early October with representatives of the Iowa Corn Growers Association and the Iowa Corn Promotion Board.
"For the last decade, Iowa Corn and the Iowa Department of Agriculture have led a sustained effort to increase food and feed sales to Cuba," said Craig Floss, Iowa Corn chief executive officer. "Last market year, 95 percent of Cuba's corn imports came from the U.S. That is real progress, given the legal restrictions on U.S.-Cuba trade."
Cuba's corn purchases this year could be nearly 40 million bushels, but Floss is even more enthusiastic about Cuba's development as a market for distillers dried grains from Iowa's ethanol industry.
"DDG was unknown in Cuba before 2004," Floss said. "Our work to introduce its use is paying off. Last year, the Cubans bought about 100,000 metric tons, and this year that is expected to double."
Delegation members said Cuba could also become a growing market for milk and meat if trade restrictions were eased.
Anything Cuba imports from the United States must be purchased in cash upfront, which limits what the country can buy, Floss said.
Cubans urged the Iowa group to encourage the U.S. government to allow tourism between the two countries. Restrictions don't allow U.S. citizens to vacation in Cuba.
Clarion farmer and Iowa Corn Promotion board member Deb Keller said allowing U.S. tourists to visit would give Cubans more dollars to buy ag products.
Iowa Corn's Cuba effort began with a humanitarian food donation in 1998, followed by exchanges that brought key Cuban food officials to Iowa and took Iowa farmers to Cuba. The October mission focused on educating Cuban livestock feeders about the use of corn and DDG.
"Both the producers and government officials in Cuba that we met with were interested in growing the dairy industry and see distillers grains as a piece that could help them do that," Northey said.
Northey said Cuba has imported Holstein genetics to improve milk productivity. Holsteins are crossed with native Cebu cattle.
Cuban agriculture is controlled by the government. The ministry of agriculture makes decisions on inputs and outputs. Farming operations are required to produce for the government. Decisions about imports are made by the ministry of trade.
Floss said the group visited Cuba ahead of its annual international trade fair to have better access to high-level officials who make agricultural decisions.
Keller said the most meaningful part of the trip for her was realizing that what Cubans consider luxuries is completely different from her idea of luxuries.
"I don't have to depend on a tourist coming through and giving me an extra few dollars so that I can have the luxury of milk," she said. "Children there don't know what candy is. They're just happy to get food."
Appliances, cars and farm equipment look like something from the 1950s. |
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