Iowa farmers think Cuba has plenty of market potential

Iowa farmers think Cuba has plenty of market potential
Tuesday, October 23, 2007
By Jean Caspers-Simmet

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.

http://webstar.postbulletin.com/agrinews/339956019212612.bsp