The U.S. Meat Export Federation (USMEF) is seeking to obtain approval for exp...

The U.S. Meat Export Federation (USMEF) is seeking to obtain approval for exports to Cuba from all federally-inspected U.S. beef and pork plants.

USMEF is in the process of putting together funding to bring two Cuban government veterinarians to the U.S. in the first quarter of 2003. The veterinarians will tour U.S. packing plants and processing facilities with the aim of obtaining a system-wide endorsement that will allow exports to Cuba following the relaxation of U.S. restrictions on trade with the Caribbean nation. In 2000, the Trade Sanctions Reform and Export Enhancement Act reauthorized the export of food and agricultural products from the U.S. to Cuba, and the first shipments from the U.S. arrived in Cuba in December 2001.

Under U.S. law, U.S. companies may export beef and pork to Cuba, although Cuba is a restricted country requiring exporter licensing, and exporting to Cuba would not be as straightforward as exporting to Mexico or Russia. U.S. suppliers could export meat to Cuba through independent importers or to the national food distribution center, Cobalsi. The meat would then be sold in government meat shops, small supermarkets, or restaurants. USMEF now plans to help make this a reality by obtaining Cuban government approval of U.S. plants. Once that approval is in place, USMEF will lead a team of U.S. packers and traders to Cuba so they can see the market and make their own determination of its potential.

Although Cuba is a developing market with limited purchasing power, the USDA Foreign Agricultural Service (FAS) estimates that if there were no restrictions on U.S. sales to Cuba, U.S. agricultural exports would reach $300 million dollars per year. This figure could grow to $1 billion per year within five years, according to FAS.

Of course, U.S. exporters would look first to Cuba's growing tourism industry – offering high-quality beef and pork items to resort hotels and restaurants. Pork and beef offal and cheaper muscle cuts also show promise in the local markets. The Cuban population favors pork, with primary opportunities for U.S. sales in pork trimmings, pork fat, shoulders and mechanically deboned product.

Cuba is the largest nation in the Caribbean with a youthful population of more than 11 million, 90 percent of whom are under 65, but its potential as a market for U.S. beef and pork is difficult to assess. In 2001, Cuba imported about $750 million in food and agricultural products from a number of countries, including Canada and Mexico. For protein, most Cubans eat fish and beans, and, to a lesser extent, pork, beef and poultry. Current per capita consumption of meat is less than that of comparable countries in the region and would certainly rise if the market is opened to competitively priced imports from the United States.

Interest in Cuba has revived this year in the wake of changes in U.S. law and the first-ever U.S. food show in Cuba, the Food & Agribusiness Exhibition in Havana, in September 2002, attended by 15 USMEF members and USMEF Western Hemisphere Vice President Homero Recio.

The show was well attended by Cuban officials, including longtime president, Fidel Castro, Cuban business people, and Alimport, the Cuban government agency responsible for importing food from the USA. Recio distributed literature on U.S. beef, pork and processed meats, made trade contacts and began the process of understanding the needs of the Cuban meat market.

During the five-day trade show, $80 million dollars worth of agricultural products were sold to Cuban buyers. Under U.S. law, all transactions had to receive a license from the Department of Commerce and be paid in cash.

“There are great opportunities especially for U.S. pork at both the foodservice and retail levels,” Recio concluded. “U.S. beef will find buyers in the tourist industry and the U.S. dollar stores found throughout Cuba, and U.S. beef variety meats such as liver could penetrate both the local and tourist business.”

The greatest challenge will be to teach Cuban buyers the value of high quality U.S. meat products. USMEF is considering future educational programs for Cuba.

“With the final lifting of the embargo,” according to Recio, “great opportunities for U.S. beef, pork and processed meats will intensify in the tourist sector, the dollar store supermarkets and the meat processors.”

Recio was one of 10 U.S. agriculture representatives who attended a four-hour private luncheon with Castro on Sunday, September 29. Castro asked many questions about American agriculture, and Recio presented him with a USMEF International Meat Manual and other educational materials regarding U.S. pork and beef.

Cuban Production and Imports

Cuba imported approximately 8,000 metric tons of pork and 4,000 metric tons of beef last year. Canada and the EU are Cuba's primary suppliers.

The United Nation's Food and Agriculture Organization (FAO) estimated Cuba's 1999 hog stocks at 2.4 million head, almost unchanged from 1990 (2.5 million head). According to FAO, pork production in Cuba peaked in the early 1990s and has stagnated at around 73,000 metric tons annually since 1995. The slowdown of hog/pork production, a smaller cattle herd, increasing tourist trade and a consumer preference for pork over beef has led to an increase in pork imports since 1997.

Cuba imported pork from at least 16 countries over the past 10 years. The European Union and Mexico were Cuba's main suppliers, but Canada has steadily gained market share and now accounts for about 80 percent of Cuba's pork imports. Canada's fresh and frozen pork sales to Cuba rose from $3.0 million in 1997 to $5.9 million in1999. Ham cuts account for nearly 60 percent of Canada's pork shipments to Cuba and this trade has increased steadily. Loin cuts also jumped and are expected to hold at the higher level.

The U.S. Meat Export Federation is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn, sorghum and soybean checkoff programs.

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