Agricultural production needs further encouragement

By Mercedes Varona

In 2007, the Cuban authorities expressed their decision to introduce changes in the economic model, as a result of the deterioration of some indicators that make up the Gross Domestic Product (GDP), which were particularly critical with regard to food production, described as a national security problem.

Since then, the trend has worsened, as shown by the results of agricultural production in the first half of 2010, during which non-sugar-cane agriculture declined 9.7 percent and livestock 4.8 percent compared with the same period in 2009.

If we consider only those items that directly affect foodstuffs, the variation between 2010 and 2009 is 10.6 percent.

So, while Cuba produced similar amounts of meats, rice and corn, vegetables decreased 21.7 percent and beans 27 percent. It is noteworthy that the results of the private sector and, to a lesser extent, the cooperatives were much higher than those achieved on state lands, as shown in the following table, which expresses the percentage represented by what was produced in the first half of 2010 compared with the same period in 2009.

Agricultural food production in the first half of 2010/2009 (in percentages)

In terms of livestock, the 4.8-percent decline is due to lower deliveries of cattle for slaughter (6.0), pigs (9.1) and horses (4.5), in addition to a 2.6-percent fall in the production of eggs, all of which weighs more than the good results of some indicators, such as milk production, which rose by 4.2 percent.

In general, cattle is largely in private hands, except for poultry where the opposite happens. When it comes to cattle and swine, state producers account for 21 and 39 percent respectively, while private producers increased from one period to the other and now hold 57 percent of beef and pork in equal proportions (the difference corresponds to the production by cooperatives.)

The slaughter, however, is done mainly by state producers (93.6 percent of cattle slaughter and 84.6 percent of swine slaughter). At this point, would it not be advisable to extend the stimulation in terms of abolishing prohibitions, further raising the prices for delivered meat, etc., to ensure that the private and cooperative sectors increase their participation in cattle slaughter?

It is true that the severe drought of 2009 had a considerable impact on these results, but it is also true that the rain fell evenly. Clearly, factors other than drought are present in these results. Is it that the private producers are more interested or motivated regardless of whether there is a drought or not?

On Feb. 27 of this year, this magazine published an article titled “Interests in Cuba Today.” The results of the first half of this year confirm what the article said.

The application of measures in the agricultural sector that further stimulate the production of private producers and cooperatives must continue, now that we know the results of recent decades.

The leasing of land in usufruct, the guarantees in the acquisition of means of production, the further relaxation of access to he free market, the systematic review of the collection prices, and the modification of the strict rules laid down for the ownership and availability of cattle producers will encourage the delivery to slaughterhouses of this important item of consumption and will be a considerable contribution to the substitution of imports.

* UBPC: Basic Unites of Cooperative Production.

** CPA: Cooperatives of Agro Production.

*** The private sector includes the private farmers who own their land and the Credit and Service Cooperatives.

Mercedes Varona, an economist, is a contributor to Progreso Semanal/Weekly.