Ag industry eyes trade with Cuba

With the reestablishment of diplomatic relations between the U.S. and Cuba, port traffic in Louisiana as well as the exporting of the state’s rice, wheat and poultry commodities is expected to increase, according to Louisiana Department of Agriculture and Forestry commissioner Mike Strain.
“Overall, the movement will be in the next year or so, not weeks or months,” Strain said in regard to how quickly the state will see the effects of the removal of the trade embargo. “There are issues to be resolved first.”
“Cuba needs to save up to buy things. I think we will see a lot of trade over the next several years, when we get more trade normalization.”
Strain predicts that one of the most immediate changes to the state’s economy will likely be an increase in from tourism from those traveling to Cuba via Louisiana.
While Strain expects U.S. exports to Cuba to increase, he estimates the United States will not see a huge upswing in imports from the country for many years.
“Cuba has struggled agriculturally,” he said. “They have lost lots of fertile land. They need to feed themselves first, so I don’t think we will see agriculture imports from them for 10 years or so. Now tobacco products, yes.”
Right now, there are 11 million people living in Cuba, and the country imports 600,000 metric tons of rice a year and a little less than that of wheat. Last year the U.S. exported $144 million worth of poultry to the country.
In the future, Strain said he also expects the United Staes to export items like beef and soybeans to Cuba.
“Trade with Cuba will be very good for Louisiana,” Strain said. “Prior to the embargo in 1963, more than 60 percent of exports to Cuba came through Louisiana ports.”
“This will be tremendous for United States, Louisiana and Louisiana’s ports. We (Louisiana) are a close (location-wise) trading partner with Cuba. Louisiana could be looking at a large share of the overall trade.”
U.S. Representative Dr. Charles Boustany also weighed in on the removal of the trade embargo.
“Opening the Cuban market for agriculture would be a huge boost for the Louisiana rice industry, which produces rice on 400,000 acres of Louisiana farm land and contributes more than $300 million to the Louisiana economy,” he said. “While I’m concerned about the ongoing human rights abuses in Cuba, I believe examining ways to open this market responsibly, ensuring money and aid flows to the people of Cuba and not the Cuban military, can help to moderate this regime and boost our local economy in the process.”