Ag/Food Exports To Cuba Turn Negative For The Year; And It's Counterintuitive

With prices of United States-sourced agricultural commodities and food products lower in 2018 compared to 2017 primarily due to political issues with China, Russia and European Union (EU)-member countries, the Republic of Cuba would have been expected to increase its purchases from the United States- spending less to obtain more as they have done in previous years when commodity prices were to their advantage.

However, primarily due to commercial and economic issues within the Republic of Cuba, lack of foreign exchange and necessity for long-term payment terms (365 days is not an uncommon request), there have been no sustained efforts by the government of the Republic of Cuba to take advantage of lower prices from the United States- and attempt to curry favor with United States-based exporters and public sector advocates.

For the period January 2018 through July 2018, agricultural commodity and food product exports (on cash-in-advance terms as required by statute) from the United States to the Republic of Cuba had increased 2.8%, although at a month-to-month declining rate, from the same period in 2017.

For the period January 2018 through August 2018, agricultural commodity and food product exports from the United States to the Republic of Cuba have decreased 8.8%.

ECONOMIC EYE ON CUBA©

October 2018

August 2018 Food/Ag Exports To Cuba Decrease 46.4%- 1

-8.8% Decrease Year-To-Year-5

Cuba Ranks 54th Of 224 U.S. Food/Ag Export Markets- 2

August 2018 Healthcare Product Exports US$42,320.00- 2

August 2018 Humanitarian Donations US$1,151,123.00- 3

Obama Administration Initiatives Exports Continue To Increase- 3

U.S. Port Export Data- 15

AUGUST 2018 FOOD/AG EXPORTS TO CUBA DECREASE 46.4%- Exports of food products & agricultural commodities from the United States to the Republic of Cuba in August 2018 were US$15,322,008.00 compared to US$28,627,776.00 in August 2017 and US$17,227,971.00 in August 2016. Exporters in August 2018 included among others: Wellesley, Massachusetts-based Grove Services (poultry); Atlanta, Georgia-based AJC International (poultry); Atlanta, Georgia-based Intervision Foods (poultry); Salisbury, Maryland-based Perdue Agri-Business (soybeans); Northbrook, Illinois-based PCS Sales (phosphates); and Little Rock, Arkansas-based Mountaire Farms (poultry).  Morristown, New Jersey-based Capsugel (2017 revenues US$1 billion), a subsidiary since 2017 of Basel, Switzerland-based Lonza Group (2017 revenues US$5.5 billion) exported gelatin capsules valued at US$25,826.00 (.84 metric tons) to the Republic of Cuba in August 2018; the first reported shipment valued at US$3,914.00 in April 2018.  Capsugel reported that the export was licensed on behalf of a Europe-based company.

Link To Complete Report With Port Data