Texas agricultural exports to Cuba continue growth

Texas agricultural exports to Cuba continue growth
February 6, 2012 By: Blair Fannin

COLLEGE STATION – Though tightly controlled, there are opportunities for
Texas agricultural producers and businesses to capitalize on potential
exports of food products to Cuba, according to a Texas AgriLife
Extension Service economist.

Dr. Parr Rosson, AgriLife Extension economist and director of the Center
for North American Studies at Texas A&M University in College Station,
said the Cuban economy has held its own amid world economic turbulence.

Dr. Parr Rosson, Texas AgriLife Extension Service economist.

Thanks to the Trade Sanctions Reform and Export Enhancement Act of 2000,
U.S. businesses may export food, agricultural and forestry products and
medicines to Cuba.

Texas supplies Cuba with several export items, including chicken leg
quarters, corn and wheat. U.S. corn exports to Cuba saw more than a 200
percent increase in value in 2011 to $109 million during the
January-November period as Cuba uses more corn products for poultry
feeding operations and other uses.

"We've begun to see some higher quality beef cuts enter the Cuban market
as well," Rosson said. Pork, cotton and dairy products produced in Texas
are also exported there.

"Pears, apples, raisins and dry (pinto) beans were exported in 2011,
along with corn chips and potato chips," Rosson said. "These are
products that we are seeing more interest in due to the growing tourism
market in Cuba."

International visitors are increasing, Rosson said, with 2.7 million
traveling to the island in 2011, 7 percent above 2010 and a new record.
Revenue from tourism exceeded $2 billion, providing more money for
Cubans to use in purchasing imported foods. Canada is the top visitor,
Rosson said, with 900,000 going to Cuba in 2011.

"They are more likely to go during the winter months," he said. "They
can fly from Canada directly to the major beach resort of Varadero."

Those resorts serve many items, including chips, fresh fruit and table
cuts of beef and pork.

"The downside is that Cuba is attempting to implement several economic
reforms and design a new more market-oriented path for their economy,"
Rosson said. "It creates some instability and uncertainty."

Rosson said Cuba is "very proficient" in producing certain tropical
crops such as sugar, tobacco, citrus and vegetables grown in
greenhouses, but other crops such as rice, wheat and corn struggle due
to high humidity, insects, disease and the high cost of production.

"And, of course, hurricanes are a threat with each season," he said.

Cuba also lacks consistent agricultural credit, so some crop and
livestock production is constrained.

"They rely on joint ventures with Spain and China to finance many
agribusiness opportunities," he said.

Agricultural commodities, such as dry beans for example, are shipped out
of Corpus Christi. Corn and wheat grown in the Lone Star State ships out
of the port of Houston, Rosson said.

The Cuban government's buying agency, Empressa Cubana Importada de
Alimentos (Alimport), handles all U.S. exports to the island, Rosson said.

"Alimport is Cuba's exclusive agent for all purchases from the U.S. and
negotiates purchases, handles documents and arranges logistics and
transportation of goods," Rosson said.

Before a U.S. firm can take product samples or export its products to
Cuba, Rosson said each product must be reviewed and licensed by the
Office of Exporter Services, Bureau Industry and Security, U.S.
Department of Commerce.

"The license is free and is valid for one year," Rosson said. More
information on licensing requirements can be found at www.bis.doc.gov.

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Contacts

Dr. Parr Rosson, 979-845-3070, prosson@tamu.edu

http://agrilife.org/today/2012/02/06/texas-agricultural-exports-to-cuba-continue-growth/