1. Update on Cuba’s Non-Sugar Agricultural Sector
July 19, 2011
Dr. Mario A. Gonzalez Corzo, Ph.D.
Lehman College, CUNY

2. An Update on Cuba’s Non-Sugar Agricultural
Sector
Mario A. Gonzalez Corzo, Ph.D.
Department of Economics and Business
LEHMAN COLLEGE, CUNY
July 19, 2011

3. “Las dificultades agrícolas deben de tener un final porque basta ya
de historias de tiempos antiguos, lo sabemos porque más o menos
esa es la impresión recogida en las asambleas anteriores. No se
trata de decir cosas nuevas, sino de traer ya los resultados de los
cambios que hacen falta: ese es el lenguaje de ahora.”
“The difficulties encountered by the agricultural sector must be
finalized (or resolved); we heard enough stories about the past;
we know this because more or less this is the information
gathered in previous Assemblies. It is not about saying new
things, but rather showing the results of the necessary changes:
that is the (new) language now. ”
Granma, July 11, 2011
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4. Outline
 Performance Indicators (2005 – 2008)
 Policy Measures (2007 – 2010)
 Recent Performance (2008 – Present)
 Output Indicators
 Yields
 Agricultural Wages
 Sales in the “Mercado Agropecuario”
• New Policy Measures (2011 – Present)
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5. Performance Indicators (2005 – 2008)
TABLE 1. CUBA: NON-SUGAR AGRICULTURAL OUTPUT (in Tons)
Change
2005 2006 2007 2008 2005 -2008 % Change Principal Characteristics:
Viandas 2,575,300 2,202,000 2,369,500 2,150,700 -424,600 -16.5%
Roots and tubers 1,801,800 1,330,200 1,378,600 1,392,500 -409,300 -22.7% (Non- Sugar Agriculture)
Plantains 773,500 871,800 990,900 758,200 -15,300 -2.0%
Greens 3,203,500 2,672,100 2,603,000 2,439,300 -764,200 -23.9%
Cereals 730,100 739,600 808,400 761,700 31,600 4.3% • Declining output levels (Table 1)
Rice 367,600 434,200 439,600 436,000 68,400 18.6% •In part due to the impact of
Corn 362,500 305,400 368,800 325,700 -36,800 -10.2%
Legumes 106,200 70,600 97,200 97,200 -9,000 -8.5% natural disasters, but also
Beans 106,200 70,600 97,200 97,200 -9,000 -8.5% as a result of economic
Tobacco 26,000 29,700 25,600 21,500 -4,500 -17.3%
Citric Fruits 554,600 373,000 469,000 391,800 -162,800 -29.4% inefficiencies, the lack of
Other Fruits 819,000 746,500 783,800 738,500 -80,500 -9.8% incentives, bureaucratic
Cocoa 2,067 2,120 1,379 1,100 -967 -46.8%
constraints, etc.
TABLE 2. Cuba: Non-Sugar Agricuture, Yields, Selected Crops (tons per hectare
Change
2005 2006 2007 2008 2005 - 2008 % Change • Falling yields (Table 2)
Viandas 7.42 7.78 7.73 7.69 0.27 3.6%
Roots and tubers 7.16 7.27 6.76 7.10 -0.06 -0.8%
•An indicator of insufficient
Plantains 8.11 8.71 9.67 9.07 0.96 11.8% Capital and labor inputs?
Greens 10.28 11.53 11.28 9.42 -0.86 -8.4%
Cereals 2.58 2.79 2.91 2.68 0.09 3.6%
Rice 2.89 3.04 3.23 2.80 -0.09 -3.0% •Growing dependency on food
Corn 2.33 2.50 2.61 2.52 0.19 8.2%
Legumes 1.12 0.92 1.16 1.02 -0.10 -8.9%
imports (particularly from the US)
Beans 1.12 0.92 1.16 1.02 -0.10 -8.9%
Tobacco 1.28 1.10 1.12 0.93 -0.35 -27.1%
Citric Fruits 9.86 6.73 9.60 8.59 -1.27 -12.9%
Other Fruits 10.11 9.71 7.84 8.89 -1.22 -12.1%
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Cocoa 0.51 0.53 0.50 0.29 -0.22 -43.2%

6. Recent Policy Measures (2007 to Present)
Recent Policy Measures Category Economic Impact
Increases in prices that Acopio pays for selected products Price reform Increased output
(e.g. rice, milk, potatoes, etc.) (2007) Improved quality
Repayment of arrears owed by Acopio to farmers (2007) Price reform Increased output
Reorganization of Ministry of Agriculture (2007) Structural Administrative
-Closing 83 SOEs reform consolidation
-Transforming 473 unprofitable units Managerial restructuring
-Transfer of 7,300 workers
-Reallocation of some 40,000 to other sectors
Approval of Decree Law No. 259 (2008) Structural Increased output
- Transfers of non-productive State-owned lands to private farmers reform Improved quality
and cooperatives in usufruct
Transfer of Acopio’s marketing functions in Havana Structural
to MINAGRI and MINCIN (2008-2009) Reform
Creation of State-operated retail outlets to sell Price reform Improved access to
limited inputs to farmers in convertible pesos Structural inputs
(CUC) reform
Introduction of small-scale, local, experimental Structural Limited increases in
projects in “suburban agriculture” reform output/quality
Elimination of selected agricultural products from Price reform Increased output
6 the rationing system – “price liberalization” Improved quality

7. Recent Performance (2008 – Present) - Mixed Results
Table 3. Cuba: Non-Sugar Agricultural Output, Selected Crops, 2008-2010
Tons Output:
Change
2008 2009 2010 2008 - 2010 % Change  Mixed results, as it takes time for the
Viandas 2,150,700 2,236,000 2,250,000 99,300 4.62%
Roots and tubers 1,392,500 1,565,600 1,515,000 122,500 8.80% reform measures to have tangible
Plantains 758,200 670,400 735,000 -23,200 -3.06% effects
Greens 2,439,300 2,548,800 2,141,000 -298,300 -12.23%
Cereals 761,700 868,400 778,900 17,200 2.26%  Partial recovery in key areas such as:
Rice 436,000 563,600 454,400 18,400 4.22%
Corn 325,700 304,800 324,500 -1,200 -0.37% viandas, roots and tubers, rice, and
Legumes
Beans
97,200
97,200
110,800
110,800
80,400
80,400
-16,800
-16,800
-17.28%
-17.28%
other fruits
Tobacco
Citric Fruits
21,500 25,200 20,500
391,800 418,000 345,000
-1,000
-46,800
-4.65%
-11.94%
 Increased non-State participation and
Other Fruits 738,500 748,000 762,000 23,500 3.18% share of total output? --- Too early
Cocoa 1,100 1,387 1,709 609 55.36%
Table 4. Cuba: Non- Sugar Agriculture, Yields, Selected Crops
to tell.
(tons per hectare)
Change
2008 2009 2010 2008 - 2010 % Change
Viandas 7.69 6.34 6.20 -1.49 -19.4%
Yields:
Roots and tubers 7.10 6.36 6.21 -0.89 -12.5%
 Unlike selected outputs, yields have
Plantains 9.07 6.30 6.17 -2.90 -32.0%
Greens 9.42 9.15 9.05 -0.37 -3.9% generally declined
Cereals 2.68 2.07 1.94 -0.73 -27.5%
Rice 2.80 2.61 2.58 -0.23 -8.1%  Possible explanations?
Corn 2.52 1.49 1.44 -1.08 -42.8%
 Insufficient labor and capital inputs
Legumes 1.02 0.74 0.71 -0.31 -30.1%
Beans 1.02 0.74 0.71 -0.31 -30.1%  Low labor productivity
Tobacco 0.93 1.01 1.01 0.08 8.5%
 Technological obsolence?
Citric Fruits 8.59 8.72 8.00 -0.59 -6.9%
Other Fruits 8.89 8.16 7.86 -1.03 -11.5%
7 Cocoa 0.29 0.27 0.32 0.03 11.1%

8. Recent Performance (2008 – Present) - Mixed Results (Cont’d)
Table 5. Cuba: Sales in the "Mercado Agropecuario"
January to December 2009
Selected products Tons
State and Non-State Sectors as % of
Total
State Non-State
Non-State
Concepto Total State Sector Sector % of Sector % State/Non-State
Sector
Total of Total
Viandas 318,036.3 286,773.0 31,263.3 90.2% 9.8% 9.2
Roots and tubbers 219,615.9 201,464.2 18,151.7 91.7% 8.3% 11.1
Potatoes 66,565.4 59,304.8 7,260.6 89.1% 10.9% 8.2
Plantains 98,420.8 85,309.2 13,111.6 86.7% 13.3% 6.5
Greens 158,728.9 80,795.6 77,933.3 50.9% 49.1% 1.0
Tomatoes 28,007.7 13,848.5 14,159.2 49.4% 50.6% 1.0
Onions 10,954.6 7,690.6 3,264.0 70.2% 29.8% 2.4
Garlic 2,736.6 2,142.4 594.2 78.3% 21.7% 3.6
Rice 27,167.5 26,201.1 966.4 96.4% 3.6% 27.1
Grains 11,446.9 10,041.5 1,405.4 87.7% 12.3% 7.1
Citric products 13,259.5 9,036.2 4,223.3 68.1% 31.9% 2.1
Other Fruits 41,374.1 27,794.5 13,579.6 67.2% 32.8% 2.0
Total 593,865.5 455,316.1 138,549.4 76.7% 23.3% 3.3
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9. Recent Performance (2008 – Present) - Mixed Results (Cont’d)
Table 6. Cuba: Sales in the "Mercados Agropecuarios"
January to December 2010
Selected Products Tons
State and Non-State Sectors as % of
State Non-State
State/Non-
Total State Non-State Sector as % as % of
State
of Total Total
Viandas 333,496.1 286,773.0 46,723.1 86.0% 14.0% 6.1
Roots and tubbers 228,130.0 201,464.2 26,665.8 88.3% 11.7% 7.6
Potatoes 62,447.1 59,304.8 3,142.3 95.0% 5.0% 18.9
Plantains 105,366.7 85,309.2 20,057.5 81.0% 19.0% 4.3
Greens 151,076.5 80,795.6 70,280.9 53.5% 46.5% 1.1
Tomatoes 28,256.5 13,848.5 14,408.0 49.0% 51.0% 1.0
Onion 10,767.4 7,690.6 3,076.8 71.4% 28.6% 2.5
Garlic 3,042.3 2,142.4 899.9 70.4% 29.6% 2.4
Rice 27,593.9 26,201.1 1,392.8 95.0% 5.0% 18.8
Grains 11,929.0 10,041.5 1,887.5 84.2% 15.8% 5.3
Citrus Fruits 14,933.7 9,036.2 5,897.5 60.5% 39.5% 1.5
Other Fruits 47,854.1 27,794.5 20,059.6 58.1% 41.9% 1.4
9 Total 607,268.9 455,316.1 151,952.8 75.0% 25.0% 3.0

10. Results (2008 to the Present)
 589,000 privately-employed farmers Figure 1. Cuba: Median Monthly
(Nominal) Salary (in pesos)
 Aggregate income (2010):
600
4.9 billion pesos (or $197 USD) 500
y = 30.80x + 317.3
R² = 0.950
 Average (nominal) monthly wages (2010): 400
700 pesos (or $28 USD) 300 Agri
cutu
re
200
 146,000 “natural persons” have received
100
land in usufruct since 2008 0
2005 2006 2007 2008 2009 2010
 71,000 (or 48.6%) are “new farmers”
 Self-employed workers: 300,000
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11. Recent Policy Measures (2010 – Present)
Agricultural Credits – The “Big Story for 2011” (and beyond?)
BANDEC (Banco de Crédito y Comercio): (Juventud Rebelde, July 10, 2011)
 13,000 farmers (2% of total, but 8.9% of “new farmers”) have been approved for
BANCEC –provided credit financing
Uses of credit financing:
 Working capital financing (WC = C/A – C/L)
 Short-cycle crops: 18 month production cycle (revolving line of credit)
 Long-cycle crops (ex. Sugar cane): 18 month amortization period
 Live stock purchases: 18 to 42 month amortization period (excludes private sales)
 Physical asset/capital investments: excludes costs to eradicate “marabu” but includes financing
for crops rotation, equipment, and physical infrastructure
Sources of collateral:
 Expected sales receipts (projected revenues) – based on the estimated value of sales
agreements/contracts with the State
 Income generated through “commercialization of agricultural products” as specified in
Agreement 6853 (June/2010)
 Any other (additional) source of income
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