December 18, 2014

The relaxation of the U.S. embargo in place against Cuba for the past 50 years is good news for U.S. agriculture. Cuba is one of the country’s closest export destinations, being just a one day sail by ship from the port of New Orleans. In 2013 the U.S. exported $350 million worth of agricultural products to Cuba including frozen chicken, corn, soybeans, and soybean meal, with chicken accounting for 41.1% of all exports at a value of $144.4 million. In 2010 when sanctions were partially relaxed, exports jumped to a value of $710 million. A key factor in the shift in trade relations with Cuba is a new approach by the U.S. which will allow direct relationships between U.S. and Cuban banks that will eliminate the need for third party banks, provide more efficient financing, reduce red tape, and reduce the cost of doing business. Cuba imports approximately 80% of the food it rations to consumers, and the country is ideally positioned to become a major market for U.S. agricultural goods. Having once been the largest market for U.S. rice, the logistics are in place to regain this standing, and as the Cuban economy strengthens, there is the potential to expand into exporting more processed foods.

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