Cuba may import sugar, rum industry pressed amid disastrous harvest

Published 2024년 5월 9일

Tridge summary

The Cuban sugar harvest is experiencing a significant decline, producing only 71% of the planned 412,000 metric tons, marking the lowest yield since 1900. This shortfall is expected to impact various industries, including rum, soft drinks, and pharmaceuticals, as there will be a reduced supply of syrup and alcohol. The country's economic challenges, including harsh U.S. sanctions and the COVID-19 pandemic, have severely affected the sugar industry and led to a substantial drop in the production of sugar cane-based alcohol, essential for these industries. The situation is further worsened by a decrease in manufacturing and a lack of necessary inputs for cultivation and milling. Additionally, the price of domestic alcohol, a crucial ingredient for rum, has surged by 46%.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

By Marc Frank HAVANA (Reuters) - The Cuban sugar harvest is winding down at the lowest tonnage since 1900, forcing the government to import and putting more pressure on its domestic rum, soft drink and pharmaceutical industries, according to official reports, two economists and a rum industry source. President Miguel Diaz-Canel said at the end of April that the state-run industry had produced 71% of the 412,000 metric tons planned, or just shy of 300,000 metric tons, and would mill into May. Cuba produced 350,000 metric tons in the last harvest and while some sugar mills remain open, yields drop sharply in May as hot, humid weather sets in, accompanied by summer rains. “This means we will have to import and, of course, less sugar means there is less syrup and alcohol for various industries and, of course, rum,” said Cuban economist Omar Everleny. The communist-run Caribbean island nation was once the world’s top sugar exporter, and produced 8 million metric tons of raw sugar ...

Source: Saltwire