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Cuba, Reestructurando La Agroindustria Azucarera
Cuba, Reestructurando La Agroindustria Azucarera
Cuba, Reestructurando La Agroindustria Azucarera
1. This document is FE472, one of a series of the Food and Resource Economics Department, UF/IFAS Extension. Original publication date January 2004.
Revised August 2009. Reviewed June 2019. Visit the EDIS website at https://edis.ifas.ufl.edu for the currently supported version of this publication.
2. José Alvarez, professor, Department of Food and Resource Economics, UF/IFAS Everglades Research and Education Center, Belle Glade, FL.
The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services
only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status,
national origin, political opinions or affiliations. For more information on obtaining other UF/IFAS Extension publications, contact your county’s UF/IFAS Extension office.
U.S. Department of Agriculture, UF/IFAS Extension Service, University of Florida, IFAS, Florida A & M University Cooperative Extension Program, and Boards of County
Commissioners Cooperating. Nick T. Place, dean for UF/IFAS Extension.
• Molasses production from sugarcane will occupy of eliminating small, inefficient factories appears to have
127,344 hectares. been fulfilled. Of the 66 mills that are being dismantled or
• Sugar production will be geared towards satisfying converted into museums, the majority had less than 3,000
a domestic need of 700,000 tons, fulfilling trade metric tons grinding capacity.
agreements, and accessing the market when prices are
Although all the provinces have been impacted to some
favorable.
degree, a few have seen their sugar industries shrink
• Extensive soil testing will be conducted on lands taken considerably. Examples include Matanzas, La Habana, Villa
out of sugarcane production (1,378,000 hectares) to Clara, and Cienfuegos, which have seen their number of
determine what areas will be devoted to mixed crops, mills decreasing to 38%, 40%, 46%, and 58%, respectively,
livestock, fruit trees, and forestry. This program began of what they were before the restructuring process.
in 1998 (MINAZ, 1999).
Deactivating the sugar mills displaced 213,000 workers, While Cuba lists 400,000 workers in its sugar agroindustry,
who have either retired or moved into other productive the methodology used to develop that figure has never
tasks—23,540 workers (58%) remain in the ministry’s been explained. Regardless of the exact number of people
enterprises; 42,600 workers (20%) are full-time students; working in Cuba’s largest industry, the impact is by no
21,300 workers (10%) have moved into non-sugar agricul- means small. Shortly after the announcement was officially
tural production; 17,040 workers (8%) have retired or gone made, Cuba’s President Castro himself had to address the
into some other type of business; and 8,520 workers (4%) nation to calm the worries of those who were about to lose
are working full-time dismantling the inactive sugar mills their jobs (Frank, 2002b). However, the nation’s fear was
(Peters, 2003, p. 9). The surplus workers who opted for well founded since Cuba’s raw sugar mills are located in 100
full-time study continue to receive their paychecks during of its 169 municipalities. This means that almost 100,000
the retraining process. displaced workers need to be retrained. While displaced
workers receiving retraining will probably not be impacted
The Cuban Minister of Sugar has stated publicly that the too much, workers engaged in indirect activities will feel
remaining sugar mills will be open to foreign investment the repercussions of this process for a long time.
(Frank, 2002a). The first mill to benefit from foreign
financing, according to the Associated Press (2002), was the Final Thoughts
“Paraguay” in the oriental province of Guantánamo. Peters The current restructuring process has just begun. It is
(2003, p. 11) reported that 10 joint ventures have been obvious that an effort of this magnitude will require
formed with foreign investors (where the foreign investor periodic adjustments, which has created a debate over other
owns part of the business and shares profits), and 15 coop- alternatives. For example, Almazán del Olmo (2002, p. 98)
erative production agreements have been reached (where states that Cuba’s sugar agroindustry should embody:
the foreign partner contracts to assist production and earns
a share of revenues, without ownership). The joint ventures • a close relationship among production, marketing,
include alcohol production (Spain), chemicals (Mexico), distribution, education, and scientific research.
and specialty papers (Italy).
• the application of scientific knowledge and technologi-
cal innovations.
Scope and Regional Impact
The numbers mentioned above, however, do not tell the • a production oriented to the different market segments.
whole story. A few calculations from the official Cuban • a diversified production, with the objective of increas-
data shown in Tables 1 and 2 help to better understand the ing the value added of products and byproducts.
magnitude of the current transformation and its regional • wider labor profiles and more effective incentive
impacts. For example, by reducing the number of raw mills mechanisms.
from 156 to 85 (a 45.5% decrease), total daily grinding
capacity declined from 647,200 to 404,700 metric tons (a • flexibility to meet changing market conditions.
37.5% decrease), whereas average milling capacity went Some world sugar specialists have reacted with some
from 4,149 to 4,761 metric tons per mill (a 14.7% increase). degree of skepticism concerning a successful outcome
(Licht, 2002). Nobody, however, questions the need for
With minor exceptions (due perhaps to the location of mills restructuring Cuba’s sugar agroindustry (Alvarez and Peña
within important sugarcane production areas), the goal Castellanos, 2001, pp. 91–106). While the current plan