For the first time in 124 years, Cuba’s sugar industry could resort into imports after decades-long production slashes. Output fell drastically in recent years due to the U.S.’ sanctions and poor weather, forcing mills into non-operation. The rum, carbonated drink, fruit jam and medicine industries all depend on ample sugar supplies, hence the current import speculations. 

By end April 2024, the state’s millers had produced 300,000 tonnes out of late May’s 412,000-tonne target, according to Reuters.

The target in itself is below the 2022 harvest of 480,000 tonnes when Cuba finally acknowledged decade-on-decade lowering output.

In 2023, the country hoped to reap 455,0000 tonnes from its sugarcane areas including the strategic Ciego de Ávila province. 

Since 1989’s 8.1 million metric tonnes, output has been falling, culminating to the nearly half-million tonnes of 2022.  

Sugar Mills Idle Without Peak Yields

Drought, pest infestation, heavy rains and tropical storms have laid Cuba’s sugar industry low and affected sugar factories. 

As the yields fall, sugar mills lay idle and turn obsolete for lack of peak performance like in the past.

For this reason, Cuba’s ally Iran targets to repair of 160 defunct sugar factories after discussions in Tehran early May 2024. 

Cuba’s Sugar Imports

Whether the repairs redeem the industry or not, it suffices to say that Cuba did not first entertain import concerns only lately.  In January 2023, Havana Times reported that as production fell, the country was eyeing import opportunities from Brazil and France. 

This was an awkward moment for the Caribbean country, given that it used to be the world’s biggest sugar producer. 

As the sweetener became increasingly hard to place, Cubans began receiving sugar in rations of 4 pounds a person per month.

Sideline Price Rise

Amid this rationing, the black market mushroomed, with traders raking in $1.50 per pound in January 2023.

In comparison, the average wholesale global sugar price in 2023 was $0.52 per kg, while in 2024 it is $0.49.

According to unofficial sources, sugar-dependent products have also seen an upward price trajectory, with alcohol up by 46%.

Traditionally, Cuba’s sugar consumption has been 700,000 tonnes per annum, way above the current less than 500,000 tonnes output.