Sunday, October 30, 2011

Cuba eases curbs to boost food output

Cuba eases curbs to boost food output
Published: Oct. 28, 2011 at 4:16 PM

HAVANA, Oct. 28 (UPI) -- Cuba is easing communist rules and nudging its
agriculture toward a market economy model as part of a stepped-up
government effort to boost food production.

Imports of raw foodstuffs and processed food claimed a further 25
percent of foreign earnings, prompting Cuban President Raul Castro to
exhort Cubans to produce more and import less.

Communist Party daily Granma warned Cuba was running out of miracles and
called on Cubans to pool energies and drive for self-sufficiency.

Castro has relaxed rules on ownership and Cubans setting themselves up
as traders as part of his effort to liberalize economy in stages. A key
new departure is the allocation of larger tracts of state land to
private farming enterprises.

Farmers who can prove their productivity will be able to lease land
nearly five times the area allowed under a 2008 decree. Until now
farmers were limited to the use of 13 hectares of land.

William Hernandez Morales, a senior agricultural official in the eastern
province of Santiago de Cuba, announced on the radio that lease holders
who could demonstrate they could produce more food would be able to
increase their holdings.

Years of Communist Party haranguing prompted many Cubans to grow part of
their food requirements in any available green patch -- a familiar scene
even in urban areas.

The Cuban state owns more than 70 percent of the arable land but critics
say nearly half of that area on the island is unused. State-led
agricultural production on the remainder of the land averages lower than
yields attained by private entrepreneurs.

Some estimates cited in the media said Cuba's private farmers produce 57
percent of the food on only 24 percent of the land.

Castro made increased food production a top priority after taking over
from brother Fidel in 2008. He also announced other economic
liberalization reforms, though at a slower pace than expected by Cubans.

Although about 1.6 million hectares of state land has been leased to
about 143,000 farmers since October 2008, the small plot size and other
bureaucratic hurdles continue to discourage the farmers.

The government's easing of farming policies coincided with attempts to
encourage foreign investors. Brazil, Venezuela and other neighboring
countries have already become involved in the Cuban economy as it

Foreign Trade and Investment Minister Rodrigo Malmierca reasoned that
inclusion of foreign investment "guarantees the access to markets for
Cuban goods and services."

Coinciding with that shift is a renewed government effort to bring
Cuba's tourism and travel sector into the 21st century, despite the
continuing U.S. embargo.

Cuba has set sights on attracting 3 million tourists and earning at
least $2 billion this year, mainly from Spain, Italy and Canada. Chinese
tourism is also expected to rise after recent agreements between Beijing
and Havana.

The government's emphasis on growing more food is a response to
escalating costs of food imports, likely to reach $1.5 billion in 2011.

No comments:

Post a Comment