The State only has 1,962 acres secured of the 5,607 that it planned to exploit for tobacco
14ymedio, Havana, 30 August 2024 — Exactly one year ago, with hands on their heads, the authorities of Sancti Spíritus wondered what to do to revive tobacco production. Whatever the methods were, they didn’t work, and this August, almost at the end of the process of hiring the vegueros (tobacco growers), the State has only 1,962 acres secured of the 5,607 that it planned to exploit.
The figure is equivalent to just 35% of the plan, which will provide, according to estimates, 948 tons of tobacco if the land yields 1.1 tons per 2.5 acres. The original plan, however, was to end the campaign that begins this September with more than 2,569 tons of tobacco, Isidro Hernández Toledo, director of the state company Acopio in the province, told the newspaper Escambray.
“There is a delay; the tobacco should have been contracted between March and April, but by waiting for an incentive to be offered to the planters, the contracting for the new campaign is behind,” regrets the official, who explains that the State finally gave and offered the vegueros a stimulus in MLC (freely convertible currency). However, it is still to be seen if this will increase production.
It is hard to understand why the regime gives so little to a sector that generates a large part of the foreign currency income that the Island obtains
It is hard to understand why the regime gives so little to a sector that generates a large part of the foreign currency income that the Island obtains. In fact, the farmers themselves announced the debacle a year ago, when the Sancti Spíritus campaign was “the worst in history,” and they did it again last March, when they declared to the official press that planting tobacco at the price paid by Acopio no longer gives results.
However, the State, now with a financial rope around its neck, has taken it for granted. “We think that a recovery can begin, which pleases the vegueros, because today in national currency, the sun-cured tobacco does not have good profitability and has been one of the biggest reasons producers stopped sowing,” Hernández confessed to Escambray.
The incentive, however, is not for all the vegueros, but will be paid according to the quality of the tobacco delivered, in addition to other requirements. “The producers have the right to sell the tobacco for hard currency, applying 2% to the value of the quality that determines the price, and deducting the cost of imports and national productions that have a component in MLC. Among the requirements are complying with the contracted planting plan and obtaining an agricultural yield of at least 1.2 tons per 2.5 acres in irrigated areas, and one ton in dry areas (which depend on rain),” he clarified.
This is a variation of the production incentive implemented in October 2023, when they promised to deliver to deliver to the growers 50% of what was used in fertilizers and pesticides
In summary, this is a variation of the production incentive implemented in October 2023, when they promised to deliver to the growers 50% of what was used in fertilizers and pesticides, it they managed to surpass the 1.4 tons per 2.5 acres plan. As for the state of sowing this year, it is clear that the measure didn’t work either.
“In addition to the low profitability of the crop lately, there is a lack of sheds to cure the tobacco, many sick and elderly producers who held the land in usufruct [a form of leasing] and then abandoned it, and places where there is no guarantee of water – something vital to achieve high agricultural yield. Hernández also added to the list the deficit of workers in many areas, mainly because not all vegueros can pay what the day laborers ask,” Hern.
While the growers are concerned about the profitability of the product, the Havana cigar is a symbol of luxury anywhere in the world. Of the billions raised annually by the industry, however, only the minimum is reinvested to keep the business afloat.
While the growers are concerned about the profitability of the product, the Havana cigar is a symbol of luxury anywhere in the world
Last July, at an event in London, the Hunters & Frankau house auctioned off Cuban cigars to all kinds of international celebrities who did not hesitate to offer large sums for them. In a single night, Habanos SA raised 5,150,000 euros, barely a small sum in its coffers, but with which the Cuban growers could rescue the industry.
However, the chance of this happening is as unlikely as Sancti Spíritus being able to revive its current tobacco campaign at this point. Hernández knows it very well, and he described the coming production – without using big words – as “discreet.”
Translated by Regina Anavy
____________
COLLABORATE WITH OUR WORK: The 14ymedio team is committed to practicing serious journalism that reflects Cuba’s reality in all its depth. Thank you for joining us on this long journey. We invite you to continue supporting us by becoming a member of 14ymedio now. Together we can continue transforming journalism in Cuba.
