Warm Reception in Havana for US Agricultural Trade Delegation

USDBC participated in the US-Cuba Agricultural Conference from April 6 – 8, 2022 in Havana, Cuba along with a delegation of representatives from the US agricultural sector. The event was an ideal opportunity to conduct important business in Cuba with a chance to renew contacts, meet officials, producers, buyers, and processors, and learn about recent policy changes affecting agriculture trade, investment, and production. USDBC Americas Representative Alejandro Leloir participated in the event and reported that the Cuban government was very encouraged by the visit from the delegation and about future trade possibilities. Alimport, the Cuban government purchasing arm, remains the primary importer of food products. There is no way to export U.S. food products to Cuba without working with the Cuban government and this will continue to lead to a complicated export environment. Nevertheless, the potential remains strong and the prospect, exciting.

Cuba imports between 25,000 MT and 50,000 MT of dry beans per year, which places it as a potential market similar to the Dominican Republic in terms of import needs, if the U.S. could capture a significant percentage of the market, this remains the challenge. Even though Cuba imports mostly black beans, Cubans eat a wider variety of bean types, including different types of red and white beans, speckled beans, chickpeas, etc. This represents an export opportunity for the U.S. Alimport projects a doubling of agricultural imports from the US in 2022 ($400-$500 million). One important advantage for the U.S. agricultural sector is the recent increases in freight costs. The U.S. has a comparative advantage due to its proximity to Cuba. Freight costs from Vietnam, for example, increased fourfold over the past two years. The U.S. agricultural sector still faces several challenges in doing business in Cuba. Cuban companies are not allowed to operate in U.S. dollars nor use the U.S. banking system and Cuba´s limited amount of foreign exchange makes it a very price-sensitive market. These challenges have been present for many years. We will continue to work together with our public and private partners to continue to encourage trade normalization. We are grateful to USDA/FAS for their support of our participation in this conference. Full trip report available from USDBC.