{"id":313922,"date":"2024-11-28T14:11:58","date_gmt":"2024-11-28T19:11:58","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=313922"},"modified":"2024-11-28T14:11:58","modified_gmt":"2024-11-28T19:11:58","slug":"pork-in-cuba-in-sustained-decline","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/pork-in-cuba-in-sustained-decline\/","title":{"rendered":"Pork in Cuba, in sustained decline"},"content":{"rendered":"

Four years ago, economist Juan Triana <\/span>wondered<\/span><\/a> what was happening with the \u201cnational mammal,\u201d whose meat had become elusive to the majority of the Cuban population. \u201cFour years ago,\u201d Minister of Agriculture Idael P\u00e9rez recently said, \u201cwe had about 96,000 pig breeders\u2026. Today we have 26,000, not in good condition.\u201d<\/span><\/p>\n

Four years ago, the delivery of pork to the national balance sheet seemed to hit rock bottom, when at the end of 2020 only 93,400 tons of pork were delivered to the industry, according to the <\/span>Statistical Yearbook<\/span><\/a> of the National Statistics and Information Office (ONEI). But the worst was yet to come: in four years, production in this sector decreased even further (more than 85); in 2023, the lowest figure in the last 15 years was recorded: 13,300 tons.<\/span><\/p>\n

With this \u201cthunder\u201d the price storm was perfect. If in 2020 the economist Triana referred to prices between 40 and 50 pesos per pound \u2014 and in that pre-Reorganization context it was already unaffordable for many \u2014 the most recent publication on <\/span>Minimum and Maximum Prices of Varieties (August 2024)<\/span><\/a>, by the ONEI, places it between 600 and 700 pesos per pound in most of the country\u2019s provinces, and up to 850 in Havana.<\/span><\/p>\n

Taking into account that the minimum pension is 1,528 pesos, it is easy to estimate that a not inconsiderable part of the population has not been able to afford a pork steak for some time.<\/span><\/p>\n

What happened?<\/b><\/p>\n

Judging by the few explanations given by the Minister of Agriculture at the Mesa Redonda TV program in early October, the collapse of pig farming in Cuba can be attributed to the tightening of the blockade and the international economic crisis, which have had an impact on the increased process for raw materials, the cost of maritime transportation and the lack of fuel.<\/span><\/p>\n

But the imbalances precede this combination of factors. The feature article <\/span>\u201c<\/b>Puercos j\u00edbaros,\u201d<\/span><\/a> published in the newspaper <\/span>Invasor<\/span><\/i>, of Ciego de \u00c1vila, at the end of 2018, showed the contradictions that the sector was dragging along and that, in view of the new year and the announcement of the obligation to pay personal income tax for pig breeders \u2014 for the first time since Law 113 of the Tax System was approved in 2012 \u2014 predicted the crisis.<\/span><\/p>\n

The pig farmers in the province said that without feed \u2014 by then the breach of the agreement with the Porcine Enterprise was already being accused \u2014 and with \u201cthe tax authorities\u2019 confusion and disorder,\u201d the mass was going to decrease, because it was unsustainable. \u201cI had 1,000 and now I decided to stay with 400; and like me, a lot of people are reducing their contracts,\u201d said a breeder with more than fifteen years of experience.<\/span><\/p>\n

The feature also pointed out that the feed deficit was not new. At least four years earlier, the same local media had investigated the issue: if in 2014 the debt was about 4,000 tons, in 2018 it had almost doubled. The Porcine Enterprise was not fulfilling its part of the agreement and it was not easier for the farmers to guarantee 30% of the feed as established in the contract.<\/span><\/p>\n

The then president of the National Association of Small Farmers (ANAP) in Ciego de \u00c1vila recognized: \u201cthe instability in fuel has been constant. Those who have to plant hectares of feed need fuel and what has happened is that their allocation has been reduced.\u201d<\/span><\/p>\n

Between feed and taxes, pig farmers began to struggle with \u201cpaperwork.\u201d Pig farming is highly polluting due to its waste and, although late, the Ministry of Agriculture (MINAG) began to demand requirements. This led to the forced closure of some pigpens and the termination of contracts due to non-compliance with environmental and health requirements, in addition to the decision of the Credit and Commerce Bank not to approve loans to those who had not resolved their \u201cillegalities.\u201d<\/span><\/p>\n

In the midst of all this, the plans remained immovable, only to end up not being fulfilled.<\/span><\/p>\n

Chicken are coming home to roost\u00a0<\/b><\/p>\n

The Ciego de \u00c1vila debacle was repeated in Villa Clara and Sancti Sp\u00edritus; the three provinces constituted the country\u2019s pig stronghold, with the largest producers and the largest deliveries to the national balance sheet. Based on the historical results of the last five years, this area was projected to produce around 200,000 tons in 2018: a national production record.<\/span><\/p>\n

But that year was also unfortunate in both provinces: in Villa Clara, in addition to the deficit of feed for fattening (a debt of about 10,700 tons), Hurricane Irma (September 2017) impacted the breeding sows, taking away 80% of the basic mass \u2014 \u201caround 400 sows and more than 1,000 offspring were lost,\u201d explained the newspaper <\/span>Vanguardia<\/span><\/i><\/a>.<\/span><\/p>\n

In Sancti Sp\u00edritus, also affected by the intense hurricane, other causes reduced the totals: \u201chealth problems in our units last year forced us to sacrifice 760 breeding sows. For these two reasons we stopped having about 14,000 pigs that represent 1,400 tons of meat in the plan; another reason is the feed debt with the agreements,\u201d confirmed to <\/span>Escambray<\/span><\/i><\/a>\u00a0the general director of the Porcine Enterprise of Sancti Sp\u00edritus, Jos\u00e9 Antonio Pi\u00f1a.<\/span><\/p>\n

According to Pi\u00f1a, the announcement of the payment of the tax as part of the Budget Law approved by the National Assembly caused more than 40% of producers with their own animals to withdraw from fattening.<\/span><\/p>\n

Even so, in 2018, 149,400 tons of pork were produced in batches \u2014 according to the <\/span>Statistical Yearbook. Manufacturing Industry. 2019 Edition<\/span><\/a>. It was the highest figure in the last 15 years, but at the same time it would mark the beginning of the sustained and unstoppable decline of the sector, with devastating impacts on the national diet.<\/span><\/p>\n

Pork, the most popular and affordable meat for the Cuban population, disappeared from the markets or became inaccessible. Even today it has not found its way back to people\u2019s tables.<\/span><\/p>\n

Its price, as we pointed out, has moved into the stratosphere and good intentions and sales control actions are not enough to lower it. The problem is in the pens.<\/span><\/p>\n

Reversing the matrix?: pork rinds are not meat<\/b><\/p>\n

Intensive pig farming depends on an abundant and specific diet: for an animal to reach 90 kilograms in 6 months, it needs feed based on cereals, proteins such as soy, and amino acids. The conversion rate ranges between 3.5 and 4.0 kilograms of feed per kilogram of meat.<\/span><\/p>\n

Since 2018, the agreement between state-owned enterprises and individual producers, through which the State supplied 70% of animal feed, did not guarantee production cycles.<\/span><\/p>\n

In another <\/span>Mesa Redonda<\/span><\/a> (May 2020), the then Minister of Agriculture, Gustavo Rodr\u00edguez, said that there were no conditions to maintain this type of contract \u2014 already at that time the feed debt reached 90,000 tons. \u201cIn the coming years we have to reverse this matrix, gradually.\u201d Reversing the matrix would put us where we are now.<\/span><\/p>\n

The second immediate impact, after the \u201cdisappearance\u201d of meat, was the decrease in producers: from 14,000 active in 2018, there were barely 6,000 in 2020 and the number would continue to decrease.<\/span><\/p>\n

Two years later, during the <\/span>national plenary meeting<\/span><\/a> convened by the top leadership and the Ministry of Agriculture to discuss with the breeders \u201chow to recover and increase the supply of the most preferred protein in the Cuban diet,\u201d the decision not to import feed and the need for each producer to guarantee animal feed was repeated.<\/span><\/p>\n

In the midst of the debate, even the pig farmers with the best results, based on allocating hectares to sow cassava and corn for pigs, made it clear that it was not enough. The pig farmer from Pinar del R\u00edo Reynier de Jes\u00fas \u2014 who had come to have pigpens with 3,000 heads and at that time only had half of that \u2014 explained that 40 hectares of sown land do not fatten 1,500 pigs.<\/span><\/p>\n

With this certainty and to exploit the niche of an undersupplied market, the joint venture Bioamazonas Pienso S.A. was born in February 2024, an economic alliance between the Cuban entity Ganader\u00eda S.A. \u2014 belonging to the MINAG Livestock Group \u2014 and the Brazilian company Bioamazonas S.A.<\/span><\/p>\n

Located in Industrial Zone No. 2 of Obourke, Cienfuegos, the production plant must deliver 50 tons of feed per hour. \u201cA simple producer or housewife who loves agriculture and animal care can come to the institution and purchase from a sack to a ton of the merchandise, using the prepaid card of Bandec and Fincimex, which can be purchased at Cadeca exchange offices and at banks. All through digital operations,\u201d <\/span>said<\/span><\/a>\u00a0the Cienfuegos radio station in May, during a visit to the enclave by Cuban Vice President Salvador Vald\u00e9s Mesa.<\/span><\/p>\n

The operation is not exactly simple. Payments are made in foreign currency, using the new dollar debit cards. According to the newspaper <\/span>5 de septiembre<\/span><\/i><\/a>, \u201cprices range between 25 and 30 dollars \u2014 it does not specify the cost per unit of measurement, we assume one kilogram \u2014, depending on the type of product ordered.\u201d That is, the State cannot import feed for fattening, but producers are forced to pay for it in foreign currency if they want to continue raising pigs.<\/span><\/p>\n

This is what the medium-sized private enterprise <\/span>Carnes D\u2019Tres<\/span><\/a>, based in Ciego de \u00c1vila, has had to do. It currently imports feed and in 2022 it <\/span>seemed<\/span><\/a>\u00a0to be the first of its kind to participate in an International Economic Association, through foreign direct investment; but there has been no further news of this.<\/span><\/p>\n

While the production of pork in batches fell to levels never seen before (15,000 tons in 2022 and 13,000 in 2023), since 2019 the import of frozen pork has increased (36,747 tons in the last five years, worth 145,370 dollars), according to the <\/span>Statistical Yearbook. Edition 2022, External Sector<\/span><\/a>. Apparently, the \u201cmatrix\u201d ended up reversing on one side only.<\/span><\/p>\n

\"\"<\/a>
8.12 \u2013 Import of selected products according to sections and chapters of the Uniform Classification for International Trade (CUCI)<\/figcaption><\/figure>\n

The price of the little meat that reaches the counters remains in the \u201cheadlines\u201d of each day of the vox populi and, although a speculation component is not ruled out (increases by intermediaries), the ways in which these animals are fattened today \u2015 whether with national or imported feed \u2015 added to the taxes applied (in the case of MSMEs it is 11% for sales) do not leave room for decline.\u00a0<\/span><\/p>\n

Four years ago, Dr. Juan Triana concluded his analysis by calling for improved incentives, updated regulations, and smoother paths. Everything remains to be done.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

In the last five years, Cuba has lost more than 85% of its pork production. 2023 recorded the lowest figure in the last 15 years and 2024 has not been better.<\/p>\n","protected":false},"author":12346275,"featured_media":313924,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13904],"tags":[19256,33425,31821],"ppma_author":[34951],"class_list":["post-313922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cuban-economy","tag-featured","tag-food-crisis-in-cuba","tag-food-production-in-cuba"],"acf":[],"yoast_head":"\nPork in Cuba, in sustained decline | OnCubaNews English<\/title>\n<meta name=\"description\" content=\"In the last five years, Cuba has lost more than 85% of its pork production. 2023 recorded the lowest figure in the last 15 years and 2024 has not been better.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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