Cuba agrees to purchase nearly $8 million in farm products

Cuban officials this week agreed to purchase nearly $8 million in agricultural products from Minnesota and other Upper Midwest states, including 13,000 metric tons of high-quality animal feed, 5,000 metric tons of powdered milk, 120 Holstein dairy heifers, 40 sheep and four bison. The purchase agreement comes on the heels of a two-week visit to Cuba by Minnesota Department of Agriculture (MDA) Trade Consultant Craig Damstrom and St. Charles-area farmer Ralph Kaehler. Their visit was the latest in a series of meetings designed to follow up on Minnesota’s highly publicized trade mission to Cuba in September 2002. During this most recent trip, Damstrom and Kaehler met with Cuban trade officials to review previous sales of livestock and identify new sales opportunities for Minnesota. Damstrom and Kaehler also checked on a feeding trial in which Cuban dairy cattle are being given Minnesota-grown NorGold(R) feed to determine how much the high-quality product can boost the cows’ milk production. NorGold(R) is a premium distiller’s dried grain trademarked by the Minnesota Shippers’ Association. Four weeks into the trial, data show NorGold(R) increased daily milk production per cow by an average of 1.7 liters at an additional cost of 7 cents per liter. This compares favorably with the estimated 17.5 cents per liter Cuba now pays to import powdered milk. After visiting the feeding trial, Damstrom and Kaehler met with Cuban leader Fidel Castro. During this meeting, Castro told the two Minnesotans that he is briefing other countries on the benefits of NorGold(R). “Castro and other Cuban officials are impressed with the quality of our farm products and our willingness to work with them to deliver the products they need to feed their citizens,” Damstrom said. “The potential for Minnesota’s trade with Cuba continues to grow, and we hope to secure more purchase agreements at a conference next month.” Cuba is still subject to U.S. trade sanctions that have been in place for decades, but these sanctions have been eased somewhat in recent years. Congress removed the ban on trade in food and medicine in 2000, but federal law still prohibits U.S. financing for sales. Damstrom said the powdered milk purchase is predicated on Cuba qualifying for the U.S. Department of Agriculture’s Dairy Export Incentive Program. Minnesota is among the states that would benefit most from full agricultural trade between Cuba and the United States. Under an ideal trade scenario, MDA estimates Minnesota farmers could enjoy nearly $45.5 million in new exports. The state’s total economic benefit would be nearly $92 million, including 900 new jobs.