Cuba Still Very Challenging for U.S. Meat Exports, but Opportunities Emerging

With diplomatic relations restored between the United States and Cuba and some travel and trade restrictions being eased, two U.S. Meat Export Federation (USMEF) staff members recently conducted a fact-finding visit to Cuba to examine current market conditions and research potential export opportunities for U.S red meat.

While Cuba has been open to U.S. pork and beef for many years, several barriers exist that continue to inhibit exports – such as lack of financing for Cuban buyers and the requirement that all U.S. goods entering Cuba must be imported through a single government entity, Alimport. Even with these obstacles in place, however, new opportunities are beginning to surface in Cuba because of the rapid increase in tourism and surging investment in Cuba’s hospitality industry.

In the attached audio report, Gerardo Rodriguez, USMEF marketing director for Mexico, Central America and the Dominican Republic, compares current opportunities in Cuba to those that existed in the Dominican Republic prior to approval of the U.S.-Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). USMEF Caribbean representative Liz Wunderlich discusses specific, near-term opportunities for U.S. meat that are emerging in Cuba, including a rapid increase in hotel capacity and the introduction of new cruise ship services to Cuba.

TRANSCRIPT:

Joe Schuele: In this U.S. Meat Export Federation report, we hear from USMEF staff who recently conducted a fact-finding visit to Cuba. Here’s Regional Marketing Director Gerardo Rodriguez.

Gerardo Rodriguez: In Cuba, I just want to give you an idea of what we are talking about when it comes to the size of this country. We picture it very similar to the Dominican Republic. The Dominican Republic, before the CAFTA-DR, the U.S. exported 343 metric tons of high quality beef. This was before the free trade agreement. After the FTA, after working with them in this market for 10 years, we moved that number to over 7,000 metric tons. So we’re talking about 20 times more than we had before the FTA signed. In the case of Cuba currently, it is about the same volume of high quality beef that they are buying from Canada. It is about the same size in population. It is about the same in per capita income. So, we have been working in these types of countries – not with this type of government, obviously – but we know about the culture, and I think we have a lot of opportunities there.

Joe Schuele: USMEF Caribbean Representative Liz Wunderlich discusses some specific opportunities that have emerged in the near-term.

Liz Wunderlich: It’s really only been since the 90s when tourism began in Cuba – they really don’t know what it’s all about. And they’re really getting ready to have a flood of tourists coming in. An increase of 80 percent of tourists from the United States. They are anticipating that they need 80,000 more rooms to cover the tourists coming their direction. And then cruise ships, every major cruise ship company has announced routes they are going to be doing coming to Cuba. That’s where opportunity would be, especially as we get more access.

Joe Schuele: For more please visit USMEF.org. For the U.S. Meat Export Federation, I’m Joe Schuele.