Ethanol Blog

The U.S. Grains Council recently sent a delegation to Cuba to examine the opportunities and challenges for U.S. coarse grains and coproduct exports after the country's markets are opened, according to an article by the council (http://bit.ly/…).

The council plans to hold ongoing discussions with Cuban officials to help them develop their livestock sectors. Kurt Shultz, the council's director of global strategies, said through these discussions, the council has an opportunity to better understand the sector's priorities and opportunities for expansion

The council's team met with such agencies as the Cuban Ministry of Trade, the Ministry of Agriculture, and Alimport -- the Cuban importing agency.

The team reported that the Cuban government expressed a willingness to look beyond the current trade embargo to a time when the U.S. and Cuba can resume trade once again, but with the realization that there will be many hurdles to overcome before the embargo is lifted.

During the visit, Cuban officials were curious about the council's work in such countries as Mexico and Morocco, particularly in how the council partnered with local producers to help develop livestock sectors.

Currently, Cuba imports approximately 900,000 metric tons of corn annually, but has been purchasing most of their needs from Argentina and Brazil, which are much farther away. The embargo and lack of access to credit have greatly hampered Cuba's ability to import grains and coproducts from the U.S.

According to USDA's Foreign Agricultural Service, Cuba has not imported any U.S. distillers grains since 2013, when it purchased only about 50,000 metric tons at a value of about $15 million.

The council plans to use the information gathered on the trip to develop strategies for the U.S. after the embargo is lifted, as well as to help Cuba expand livestock production to better meet the needs of its population.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com

(CZ)

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