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Economy & Business - July 2003

SUGAR: Still no figures from Cuba

Actual data for the sugar harvest in 2002/03 have yet to be published. All senior officials will tell us is that the harvest was one of the worst in Cuban history and that it was a long way short of the 3.6mt produced the previous year. José Luis Rodrí­guez, one of the survivors in the régime, who is still economy and planning minister, as well as holding the vice-presidency, told the official news agency that everything has been done to ensure that the next harvest is efficiently carried out. Rodrí­guez, apparently, wants to ensure that the central resources that have to be deployed by the government are available for the harvest. The implication, clearly, is that this was not done in the 2002/03 harvest. 

A recent report by the sugar ministry reckoned that there were three reasons for the poor harvest: lack of financing; poor management and understanding of the changes that had been made, and, thirdly, heavy rain. 

Rodrí­guez seems to have taken over the management of the industry. Previously, this was done by General Ulises Rosales del Toro. Rodrí­guez has set up a management committee, which meets weekly, to review the progress of the crop and to marshal the resources that are needed. He said that a key goal will be to ensure that nothing prevents the mills that are used from operating efficiently. This year, apparently, there was a lot of unnecessary stopping and starting. Only 71 mills were used while 14 were used to produce molasses. 

The deputy sugar minister, Manuel Avila, said that the industry would do more to train millworkers. There would also be more work done on ways of managing the cane cutting and on transporting the cane to the mills. 

Cuba's sugar industry is not very efficient, even after the restructuring this year. The government admits that it still costs 359 pesos (or dollars, officially) to produce each tonne of sugar. The target is to get this down to 260 pesos/t.

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