Polling Results on Cuban Americans’ Viewpoint on the Cuba Opportunity_Full
THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early...
Transcript of THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early...
![Page 1: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/1.jpg)
by William A. Messina, Jr. and Ariel Singerman,
UF/IFAS Food and Resource Economics Department
and CREC Lake Alfred.
THE CUBAN CITRUS
INDUSTRY
Presentation to the
2018 International Citrus and Beverage Conference
Clearwater, Florida, September 19, 2018
![Page 2: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/2.jpg)
CUBA IS A LARGE ISLAND!
90 MILESHAVANA
NUEVITAS
GUANTANAMO
ISLE OF YOUTH
(ISLE OF PINES)
JAGUEY
GRANDE
![Page 3: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/3.jpg)
A LONG HISTORY OF
CITRUS IN CUBA
• Citrus seeds from the Canary Islands were brought to Haiti during Christopher Columbus’ second voyage in 1493
• Citrus was introduced from there to Cuba and then to Mexico and Central America.
• Through the 1800s, citrus spread throughout the island
mostly in patios of country homes
shade for coffee growing
very limited commercial plantings.
![Page 4: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/4.jpg)
EARLY 20th CENTURY – TWO
IMPORTANT INFLUENCES
1. Freezes in Florida in 1890s
2. In the late 1890s, Spanish-American War (< 4 mo.),
Cuba-Spanish-American War (> 4 years)
• U.S. tried to exert its influence in Cuba.
• Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the establishment of American colonies in Cuba
• 2½ to 40 acre plantation plots
• homes and business plots
![Page 5: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/5.jpg)
CUBAN LAND & STEAMSHIP CO.
• Launched by “some of the most successful and shrewdest business men of New York . . .”
• A colony “for Americans only, in one of the choicest, most beautiful and fertile spots on the most fertile island in the world.”
• “real estate experts are in Cuba buying choice [agricultural] land with the sole object of making all of this land worth fifty times its present value.”
• “the most gigantic and liberal colonization enterprise in the history of the world.!”
![Page 6: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/6.jpg)
EARLY 20th CENTURY
• 1900 a ship arrived in Nuevitas (in eastern Cuba) with more than 200 Americans who were preparing to establish the first American colony in Cuba
• they arrived to undeveloped mangrove swamps
• By 1903 – 37 American colonies in Cuba
• By 1913 – 64 colonies in Cuba
• In 1920s – approximately 80 foreign colonies, mostly American but also included English, Canadian, Scandinavian & German settlers.
• Most in eastern Cuba and the Isle of Pines (now the Isle of Youth) off of Cuba’s southwestern coast
![Page 7: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/7.jpg)
• Colonies produced vegetables and citrus
• In 1905 Cuba began to export citrus to the United States, particularly grapefruit.
• Cuban grapefruit exports to the U.S. peaked in 1922 at about 520,000 boxes.
• On the Isle of Pines (today Isle of Youth) settlers from the United States had developed:
• extensive grapefruit plantings and related facilities;
• two modern packing houses.
EARLY 20th CENTURY (continued)
![Page 8: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/8.jpg)
• Cuban Revolution in 1959 – brought about expropriation of large and medium sized farms and consolidation into immense State Farms, but this had relatively little impact on citrus acreage or production levels.
• Lykes-Pasco had extensive groves and facilities on the Isle of Youth that were expropriated in the early 1960s.
• 1968 – National Citrus Program launched by the Cuban government (with Soviet investment) and a target market of the Soviet Union and Eastern Europe.
Fruit consumption in Soviet Union and Eastern Europe was low and Soviets offered high prices for Cuban citrus.
LATE 20th CENTURY
![Page 9: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/9.jpg)
CUBAN GRAPEFRUIT HARVEST - 2007
![Page 10: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/10.jpg)
CUBAN GROVES (early 2000s)
![Page 11: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/11.jpg)
JUICE
PROCESSING
PLANT AT
JAGUEY GRANDE
![Page 12: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/12.jpg)
GROVES AT
JAGUEY (early 2000s)
![Page 13: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/13.jpg)
GROVES AND
HARVESTING(pre-HLB)
![Page 14: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/14.jpg)
http://www.radio26.cu/2017/09/17/en-el-suelo-pero-con-vida/
POST-
HURRICANE
![Page 15: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/15.jpg)
CUBAN CITRUS PRODUCTIONPeak In 1990 Cuba was the
third largest grapefruit
producer in the world
after the U.S. and Israel
![Page 16: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/16.jpg)
CUBAN CITRUS PRODUCTIONSoviet Union collapse
![Page 17: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/17.jpg)
CUBAN CITRUS PRODUCTIONIsraeli investment
![Page 18: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/18.jpg)
CUBAN CITRUS PRODUCTION
Hurricanes
![Page 19: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/19.jpg)
2008 HURRICANESMORE TYPICAL
HURRICANE PATH
HURRICANE
IKE
![Page 20: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/20.jpg)
CUBAN CITRUS PRODUCTION
Smaller recovery
in 2009
![Page 21: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/21.jpg)
CUBAN CITRUS PRODUCTION
HLB spreads and
soon after
Israeli investment
departs
![Page 22: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/22.jpg)
CUBAN CITRUS PRODUCTION DECLINES,
1990 TO 2017 - BOXES, METRIC TONS & %
BOXES METRIC TONS
1990 2017 1990 2017% Decline
1990 to 2017
Oranges 14,743,016 748,402 601,854 30,552 94.9%
Grapefruit 8,640,760 1,097,923 333,157 42,332 87.3%
Lime 1,497,440 236,142 61,130 9,533 84.4%
TOTAL
CITRUS25,354,054 2,474,118 1,015,873 98,761 90.2%
![Page 23: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/23.jpg)
CUBA’S CITRUS HARVEST SCHEDULE
Au Se Oc No De Ja Fe Ma Ap My Ju Jly
Red
Grapefruit
White
Grapefruit
Early
Oranges
Valencia
Dancy
Eureka
Lemon
Persian
Lime * * * * * * * *
Source: MINAG
* = small production
volumes
![Page 24: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/24.jpg)
CURRENT SITUATION
• Cuba continues to seek low-tech, low-cost
ways to address HLB.
• They continue to replant trees.
• They continue to seek foreign investment in
citrus.
• But they also continue to convert land from
citrus.
![Page 25: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/25.jpg)
FUTURE PROSPECTS?
Depend on:
• Ability to develop ways to deal with HLB?
• CAPITAL investment. (They have LAND and they
have LABOR . . . )
• Very limited ability to generate domestic sources of
capital and limited lending channels
• Foreign investment is key!
![Page 26: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/26.jpg)
FOREIGN CAPITAL
• Some very successful foreign investments in Cuba,
typically as a joint venture with the Cuban
government as majority partner:
• Tourist hotels
• Meliá Hotels (Spanish)
• Sheraton
• Mining (nickel)
• Sherritt International (Canadian)
![Page 27: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/27.jpg)
FOREIGN INVESTMENT in AGRICULTURE
• Largely limited to export crops (because of limited
“effective” domestic demand)
• Citrus – most foreign participation in production is
gone
• Shellfish
• Rum
• Cigars
• Greenhouse vegetables (unsuccessful)
• Sugar (recent)
![Page 28: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/28.jpg)
IMPORTANCE OF CAPITAL
• $2 to $2.5 BILLION per year in foreign investment needed
to achieve goals for economic growth!
• Foreign investment laws are evolving but are not yet up
to international standards.
• Cuban government is promoting foreign investment.
• Opportunities for investment of $180 million in citrus
production and processing
![Page 29: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/29.jpg)
CUBAN INVESTMENT
OPPORTUNITIES IN CITRUS
• $152 million partnership – to develop 14,600 acres of citrus
over the next 5 years for fresh and processed markets.
• $15 million joint venture – for processing of concentrate,
single strength juices, pulp and essential oils.
• $7 million joint venture – to develop 7,000 acres of citrus and
700 acres of tropical fruit trees, and a plant for processing
juice, pulp and preserves.
• $5 million partnership – to develop processing for juice,
concentrate and essential oils with organic
certification.
![Page 30: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/30.jpg)
FUTURE PROSPECTS?
• Cuba could be a niche player in certain citrus markets.
• They have organic certification for export to EU.
• Oranges are very sweet (25+ ratio).
• A role for early season grapefruit?
• Essential oils?
• Could become an important tropical fruit supplier? But
requires investment.
• Until such time as Cuba has access to the U.S. market,
prospects for significant FDI would appear
to be limited.
![Page 31: THE CUBAN CITRUS INDUSTRY War (> 4 years) •U.S. tried to exert its influence in Cuba. •Early 1900s the Cuban Land and Steamship Company began promoting land sales in Cuba for the](https://reader030.fdocuments.us/reader030/viewer/2022041100/5ed68240ff0e593c0b63f98b/html5/thumbnails/31.jpg)
THANK YOU!
Bill Messina
University of Florida/IFAS
Food and Resource Economics Dept.
Email: [email protected]
Voice: 352 294-7656