Coronavirus slashes Cuba sugar harvest
With Cuba’s sugar harvest poised to draw to a close as the coronavirus pandemic rages, production stands at little more than two-thirds of planned levels, an industry official said on Monday, indicating the smallest crop in more than a century.
It is reported by Reuters.
In yet another blow to the ailing Cuban economy, Jose Carlos Santos Ferrer, first vice president of state sugar monopoly AZCUBA, told the state Cuban News Agency that as of end-April, production had reached 68% of the Communist-run country’s plan. With the planned target announced earlier this year as 1,2 million tonnes of raw sugar, that means a harvest of 816,000 tonnes — the lowest since 1908.
The harvest was also hit hard by a shortage of foreign exchange to purchase fuel, agricultural inputs and spare parts due to the COVID-19 pandemic and fierce U.S. sanctions. Mills were temporarily shuttered due to fuel and cane shortages, as well as COVID-19 outbreaks, Santos Ferrer said.
Cuba consumes between 600,000 and 700,000 tonnes of sugar a year domestically and has an agreement to sell China 400,000 tonnes annually. It was not clear if authorities planned to cut domestic consumption, exports to China or both.
Cuba’s sugar harvest begins in November and usually winds down by May, when yields plummet as the summer heat and rainy season set in. Even if the country manages to reach 900,000 tonnes of raw sugar, that would still mark the lowest since 1908.
Cuba’s output has averaged around 1,4 million tonnes of raw sugar over the last five years, compared with an industry high of 8 million tonnes in 1989.
While no longer a top export, and behind other foreign revenue earners such as medical services, tourism, remittances and nickel, sugar still brings Cuba hundreds of millions of dollars a year from exports, including derivatives. It’s also used to produce energy, alcohol and animal feed at home.