• Submitted by: manso
• Business and Economy
• 04 / 15 / 2011

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The availability of imported consumer goods might shrink in the future, warned Granma Friday in an article titled "The nation will have to pay more to import the same."

The article makes its point by citing the rising price of wheat (from US$280 per metric ton in 2010  to $411 this year, up 47 percent), corn ($24?$388, up 62%), soy flour ($412?$433, up 5%), soy oil ($992?$1,442, up 45%) and powdered milk (imb) ($3,125?$4,930, up 57.7%).

According to Igor Montero Brito, president of the food import company Alimport, "this implies that the revenue we expected from the exportation of nickel, services and sugar, among others, will no longer be additional but must be used to cover the deficit in the food bills."

The country will be forced "to increase its subsidies in amounts not contemplated in the [budget] plan, which will pressure even further the balance of payments and the country's economic development," Montero told the newspaper.

Overall, the importation of food will cost Cuba 25 percent more than in 2010, but it might have cost 29 percent more if Alimport hadn't contracted most of its purchases early in the year, the official said.

"For example, wheat will cost us 6 percent more than expected, but if we hadn't hastened to sign contracts, we'd be talking about a 13-percent increase," Montero said.

Entering into "futures contracts" was another money-saver, he explained. And another way to save on imported food is to replace it with food produced at home, such as milk, beans, rice, soy, pork, etc., he said.

The bottom line: produce more at home. The government is paying whatever it takes to feed its people, the article says, "but the 'fixes' that create miracles are running out."

Source: http://miamiherald.typepad.com/cuban_colada/2011/04/