Crops rot in the fields in Cuba and farmers sell land due to fuel shortages

Source:  Latifundist.com
Куба

Cuban farmers are putting their farmland up for sale en masse due to an acute fuel shortage that has paralyzed production and logistics. The crisis is being fueled by new US sanctions that have virtually cut off oil supplies to the island, the Financial Times reports.

According to the publication, after the administration of US President Donald Trump tightened sanctions, Cuba has received only two tankers of oil since the beginning of the year. Due to the shortage of diesel fuel, the country is facing power outages lasting up to 22 hours a day, which has made it impossible to operate irrigation systems, tractors, transport and refrigeration equipment.

As a result, dozens of farmers have started selling their farms via social media. A farmer in central Cuba, who owns a tractor, a pair of oxen and 7.5 hectares of cassava, has reduced the price of his farm from $9,500 to $8,000, but even that amount remains out of reach for most Cubans, with the country’s median monthly income of less than $10.

Fruit production has also been hit. According to Annabel Cantarero Sanchez, owner of an organic farm near Havana, the harvest on state-owned mango plantations is rotting in the orchards due to a lack of transport.

The food situation is also worsening. Last month, the Cuban government announced that the state food card system, which has been in place since 1962, will no longer be universal. Only pensioners, chronically ill children and other vulnerable groups will now be eligible for preferential food supplies.

According to UN estimates, even before the current fuel crisis, Cuba’s pork production fell by 95%, rice by 87%, beans by 70%, and milk by 58% between 2018 and 2023. The additional deficit was caused by reduced imports of milk powder, corn, and wheat.

Despite the difficult situation, Cuba remains a potentially attractive market for American farmers. Last year, agricultural exports from the United States to the island, permitted under certain embargo exemptions, reached $477 million.

However, experts note that without the restoration of a stable supply of fuel, agricultural production in Cuba will continue to decline, and more and more farmers will be forced to sell their farms.

For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.

It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.

You are welcome to get a 7-day free demo access!!!

Tags: ,

Got additional questions?
We will be happy to assist!

Secret Link