Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Cuba's sugar harvest worst in over century, another hit to ailing economy

Published 05/25/2022, 01:52 PM
Updated 05/25/2022, 01:56 PM
© Reuters. FILE PHOTO: A harvester cuts sugar cane at a plantation in San Cristobal, Cuba, February 25, 2022. REUTERS/Amanda Perobelli

HAVANA (Reuters) - Cuba's emblematic sugar harvest topped out at just over half of the communist-run government's target this year, according state-run newspaper Granma, representing another major blow to the country's already crisis-racked economy.

That 2021-2022 harvest hit just 52% of the goal for the season, Granma said, or approximately 474,000 tons. That is nearly half of last year's crop of 800,000 tonnes, which was already the worst since 1908.

The report, which cited a spokesman for Azcuba, the state-run sugar company, blamed the shortfall primarily on a lack of inputs, including oxygen for sugar production, fertilizers, pesticides, fuel and spare parts for plant machinery.

"The financial factor was among the most influential in the results of the harvest, exacerbated by the intensification of the economic, commercial and financial blockade of the US Government against the island," the Granma report said.

The report said only 37% of the necessary herbicides and pesticides were available for use this season.

The spokesman also noted problems related to "administration, labor and technological discipline," according to the report, which he said remained unresolved.

Sugar has long been a point of pride for Cuba, critical to the production of its iconic rum and a key source of foreign exchange and employment in the island's poor agrarian interior.

Economy minister Alejandro Gil said in December that Cuba planned to produce 911,000 tonnes this year, with 500,000 tonnes earmarked for domestic consumption, and the rest for export.

© Reuters. FILE PHOTO: A harvester cuts sugar cane at a plantation in San Cristobal, Cuba, February 25, 2022. REUTERS/Amanda Perobelli

Granma noted that despite the steep drop in output, the state sugar company had guaranteed enough raw sugar to provide Cubans their monthly, state-supplied ration through the end of 2022.

Cuba had also planned to sell China 400,000 tonnes, part of a standing agreement with Beijing. The report did not make clear what had come of that deal.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.