ES / EN
- May 11, 2025 -
No Result
View All Result
OnCubaNews
  • World
  • Cuba
  • Cuba-USA
  • Opinion
    • Columns
    • Infographic
  • Culture
    • Billboard
  • Sports
  • Styles / Trends
  • Media
  • Special
  • Cuban Flavors
  • World
  • Cuba
  • Cuba-USA
  • Opinion
    • Columns
    • Infographic
  • Culture
    • Billboard
  • Sports
  • Styles / Trends
  • Media
  • Special
  • Cuban Flavors
OnCubaNews
ES / EN
Home Cuba Economy Cuban Economy

Cuba: crisis of an industry that doesn’t take off

The emblematic Cuban sugar industry has been affected in the last six decades by many factors. Of the 156 sugar factories operating before 1959, 56 remain, and only 38 of them are grinding in the current harvest, which will not reach the 1.2-million-ton target either.

by
  • EFE
    EFE
May 7, 2021
in Cuban Economy
1
sugar harvest

Farmers after finishing their work in a sugar cane crop, on April 29, 2021 in Madruga, Mayabeque (Cuba). Photo: Ernesto Mastrascusa/EFE.

Once a leader in the world sugar market, Cuba is far from recovering the fruitful production volumes of the past in an industry considered the driving force of the country’s economy, but which has failed to take off since its collapse in the 1990s.

Of the 156 sugar factories operating before 1959, 56 remain, and only 38 of them are grinding in the 2020-2021 harvest. And the 5.6 million tons of sugar collected in the year when the Revolution triumphed, or the seven and even eight million in the best seasons between 1970 and 1989, have been reduced to just over a million projected for the current harvest.

The emblematic Cuban sugar industry has been affected in the last six decades by the U.S. financial and commercial embargo, with losses of some 125 billion dollars—according to Havana estimates—and the impossibility of accessing the United States market.

Workers in the Boris Luis Santa Coloma Sugar Factory, which has stopped its sugar production, on April 29, 2021 in Madruga, Mayabeque (Cuba). Photo: Ernesto Mastrascusa/EFE.

Added to this are technological obsolescence, lack of fertilizers and fuels, low financial availability and other factors that slow down the development of this strategic sector’s contribution of foreign exchange with exports of sugar, alcohol (especially rum), energy and other derivatives.

This causes the frequent stoppage of production in the plants and the low quality of the raw material, which is essential in a long-cycle crop.

Related Posts

Old Havana: Private businesses in the Cuban economy

Cuban economy, the “regulations” and the shoe

May 10, 2025
One of the new photovoltaic solar parks being installed in Cuba. Photo: Taken from the Facebook profile of the Electricity Conglomerate (UNE).

Solar parks vs. blackouts: between illusions and reality (II and end)

April 16, 2025
A farmer with his cows on a farm in Cárdenas, Matanzas. Photo: Ernesto Mastrascusa/EFE.

“We’re going to be left with nothing”: cow theft and slaughter are ravaging Cuba’s countryside

April 15, 2025
The fourth edition of Quórum took place this Friday at the Meliá Habana Hotel. The event is organized by AUGE

Quórum: looking to the horizon for private enterprise sector in Cuba

February 9, 2025

Of the factories that still operate, many do so with the drive, the “inventiveness” and the sense of belonging of their own workers, such as the Boris Luis Santa Coloma (formerly San Antonio) sugar factory, 53 kilometers east of Havana.

In order to import sugar, supplies or parts, Cuba must overcome the embargo’s financial persecution, the first vice president of the state group Azcuba, José Carlos Santos, told EFE.

Added to this is the impact of hurricanes such as Irma, which cut down the slight growth experienced in 2011, after suffering in 2010 the worst harvest in 105 years with just one million tons.

That hurricane devastated more than 430,000 hectares of sugarcane in 2017 and left about 20 factories with broken roofs and deteriorated structures.

As a result, 700,000 tons of sugar have not been produced since 2017, Santos said in a meeting with the press.

Cuba seeks a better sugar harvest after not meeting plan this year

Nor will the target of 1.2 million tons be reached in the current milling started in December and which should have been completed at the end of April but will be extended, said the executive, until the May rains allow it.

Sweet nationalization

Sugar, brought to the island by the Spanish conquistadors in 1493, comprised 80% of Cuban exports in the 1950s, and its main market was the United States, which reserved a preferential quota.

At the end of the 1950s, there were 161 sugar factories in Cuba, of which 131 were owned by wealthy Cubans and accounted for 60% of production, compared to 37% by U.S. businessmen.

At the triumph of the Cuban Revolution in 1959, the sugar plantations were nationalized, although initially, the mills remained in the hands of their owners. The goal was to diversify a single-crop economy and end dependence on the American buyer.

Campesinos trabajan en un cultivo de caña de azúcar, el 29 de abril de 2021 en Madruga, Mayabeque (Cuba). Foto: EFE/Ernesto Mastrascusa.
Farmers working in a sugarcane crop on April 29, 2021 in Madruga, Mayabeque (Cuba). Photo: Ernesto Mastrascusa/EFE.

The production of the 1959-1960 harvest reached 5.6 million tons of sugar.

In 1960 Cuba made the last sugar export to the United States, of 1.9 million tons. Washington suspended the benefit of the preferential quota, one of its first economic sanctions on the island.

Cuba nationalized the sugar factories that same year, as well as the U.S.-owned mills, and the Soviet Union pledged to buy a larger percentage of the annual Cuban harvest until 1970.

The United States responded with what is known as the “Dagger Law,” which authorized then-President Dwight Eisenhower to abolish the Cuban sugar quota for the rest of that year.

This action is considered the origin of the U.S. policy (in force until today) of blocking the entry of foreign currency to stagnate the Cuban economy, dependent on sugar.

The ten million

Given the U.S. restrictions, the Soviet Union assumed the Cuban sugar quota for the United States at preferential prices and began to export agricultural machinery and other inputs to the island.

Then-President Fidel Castro announced in 1970 the ambitious plan to produce ten million tons of sugar, appealing to national pride and also to world market prices.

Vista del interior del Central Azucarero Boris Luis Santa Coloma, que permanece en paro de su producción de azúcar, el 29 de abril de 2021 en Madruga, Mayabeque (Cuba). Foto: EFE/Ernesto Mastrascusa.
View of the interior of the Boris Luis Santa Coloma Sugar Factory, which stopped its sugar production, on April 29, 2021 in Madruga, Mayabeque (Cuba). Photo: Ernesto Mastrascusa/EFE.

Although the goal of the 1970-71 harvest was not reached—it only produced 8.5 million tons—at the end of the decade, the 1980-81 harvest reached 7.4 million and ten years later, the 1988-89 harvest was 8.1 million tons.

Drastic fall

The disintegration of the USSR in 1991 left Cuba without its main market, which triggered the serious crisis of the “special period.”

Five years later, the harvest dropped to 4.3 million tons and the U.S. Helms-Burton Act came into force, reinforcing the embargo and beginning to penalize third parties who invest in confiscated properties on the island, including the sugar industry.

The solution was to reduce costs and production capacity and allocate the land to other crops, in the midst of the drop in the world sugar price.

In 2002, Fidel Castro announced a “restructuring” of the sugar industry with the closure of 70% of the sugar factories, which reduced production capacity by half, and 60% of the sugarcane land was used for other crops due to its low profitability.

Vista de un cartel que incentiva a los cubanos a producir más azúcar, cerca a la entrada del Central Azucarero Boris Luis Santa Coloma, que permanece en paro de su producción, el 29 de abril de 2021 en Madruga, Mayabeque (Cuba). Foto: EFE/Ernesto Mastrascusa.
View of a poster encouraging Cubans to produce more sugar, near the entrance to the Boris Luis Santa Coloma Sugar Factory, which remains closed, on April 29, 2021 in Madruga, Mayabeque (Cuba). Photo: Ernesto Mastrascusa/EFE.

This metamorphosis included the creation of the sugar agroindustry business group (Azcuba), which took over from the Ministry of Sugar at the head of the sector to increase the industry’s efficiency.

However, after the rise in prices on the world market in 2006, the highest authorities of the island adopted the strategy of “producing more sugar,” recalling the stage in which this product was the backbone of the Cuban economy.

  • EFE
    EFE
Tags: sugar harvest in Cuba
Previous Post

Cuba approves sale of beef, milk and their by-products

Next Post

Indian hotel chain to inaugurate new tourist facility in Cuba

EFE

EFE

Next Post
The five-star Almirante hotel, the first sun and beach resort of the Cubanacán group in eastern Cuba, will be the new attraction in the Guardalavaca beach resort, in Holguín. Photo: ACN/Juan Pablo Carreras.

Indian hotel chain to inaugurate new tourist facility in Cuba

QR code sticker on a table at Coppelia ice cream parlor. Photo: Abel Padrón Padilla/Cubadebate/Archive.

Electronic payments extended to grocery stores in Cuba

Photo: Yander Zamora/EFE/Archive.

In four months of 2021, Cuba registers more than 100,000 infections

Comments 1

  1. Paul Citro says:
    4 years ago

    Is the US embargo preventing Cuba from accessing the world sugar market? Can Cuba be successful in that market?

    Reply

Leave a Reply Cancel reply

The conversation here is moderated according to OnCuba News discussion guidelines. Please read the Comment Policy before joining the discussion.

Your email address will not be published. Required fields are marked *

Most Read

  • The Enchanted Shrimp of the Cuban Dance

    2940 shares
    Share 1176 Tweet 735
  • Cuban Cardinal before the conclave: “There is a desire to maintain the legacy of Pope Francis”

    34 shares
    Share 14 Tweet 9
  • Cuban economy, the “regulations” and the shoe

    12 shares
    Share 5 Tweet 3
  • Deported and without her baby daughter: Heidy Sánchez’s desperation

    10 shares
    Share 4 Tweet 3
  • Melagenina Plus, Cuba’s hope against vitiligo, being tested

    132 shares
    Share 53 Tweet 33

Most Commented

  • Photovoltaic solar park in Cuba. Photo: Taken from the Facebook profile of the Electricity Conglomerate (UNE).

    Solar parks vs. blackouts: between illusions and reality (I)

    15 shares
    Share 6 Tweet 4
  • Fernando Pérez, a traveler

    11 shares
    Share 4 Tweet 3
  • Solar parks vs. blackouts: between illusions and reality (II and end)

    13 shares
    Share 5 Tweet 3
  • The “Pan de La Habana” has arrived

    31 shares
    Share 12 Tweet 8
  • China positions itself as Cuba’s main medical supplier after signing new contracts

    27 shares
    Share 11 Tweet 7
  • About us
  • Work with OnCuba
  • Terms of use
  • Privacy Policy
  • Moderation policy for comments
  • Contact us
  • Advertisement offers

OnCuba and the OnCuba logo are registered® trademarks of Fuego Enterprises, Inc., its subsidiaries or divisions.
OnCuba © by Fuego Enterprises, Inc. All Rights Reserved.

No Result
View All Result
  • World
  • Cuba
  • Cuba-USA
  • Opinion
    • Columns
    • Infographic
  • Culture
    • Billboard
  • Sports
  • Styles / Trends
  • Media
  • Special
  • Cuban Flavors

OnCuba and the OnCuba logo are registered® trademarks of Fuego Enterprises, Inc., its subsidiaries or divisions.
OnCuba © by Fuego Enterprises, Inc. All Rights Reserved.

Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}