Cuba's Minister of Food Industry, Alberto López Díaz, addressed the Cuban Parliament's Agro-Food Commission on Tuesday, presenting the economic report for the first half of 2025. He outlined urgent government measures aimed at "correcting distortions" and revitalizing the nation's struggling food sector. In a speech underscored by stark statistics and the pressing need for action, the minister acknowledged, "The sector has faced a challenging half-year," and admitted that "not all companies are capitalizing on available opportunities."
Production Struggles Except for Beer Industry
The bleak production figures highlight the precarious state of Cuba's food industry. Only the beer sector exceeded its goals:
- Dairy industry: Achieved 54.1% of the plan, with slight growth in collection.
- Meat industry: Attained 71% of the target but saw a decline of more than 600 tons.
- Preserved foods: Reached only 48.5% of the plan, despite improved tomato production.
- Coffee production: Critically low at just 2,887 tons, or 23.7% of the plan.
- Flour milling: 54.4% of the plan, hindered by a lack of wheat shipments.
- Beer: The sole bright spot, with 107% fulfillment thanks to companies like Bucanero and Parranda.
Financial Losses and Enterprise Struggles
One of the most alarming statistics was the number of companies reporting losses: 17 entities ended the semester in the red, with total losses amounting to 364 million pesos. This marks an increase of five companies and 217 million pesos in losses compared to 2024. The OSDE Alimentaria was a major contributor to this downturn.
The report by López Díaz also showed a 2.9% decline in net sales compared to the same period last year. Total sales amounted to 31,635 million pesos, only 83% of the planned target. As for net profits, the sector achieved just 91% of the expected figure, with a significant 17.5% drop.
Fuel Shortages, Debts, and Export Declines
The fishing sector began the year with severe limitations. According to the minister, storing lobster was not possible due to fuel shortages. "Last year, we failed to capture around 2,000 tons of lobster," López Díaz noted, directly impacting export revenues. However, he anticipated potential recovery in the second half of the year with the lifting of the ban on July 1st.
The financial outlook remains dire: the sector is grappling with a debt of 35.5 million dollars, with over 25 million overdue. As a relief measure, 73.47% of fishing revenues (equivalent to 62.2 million pesos) have been earmarked for industry development.
The lack of raw material imports is a primary cause of the production collapse. "Only 30% of the planned powdered milk and 55% of the wheat were received, and no soy or oil imports have occurred this year," the minister detailed.
Private Sector Engagement as a Lifeline
A notable aspect of the report was the progress of production linkages with the non-state sector, now participating in 25% of national food production. The meat industry relies on these actors for 38%, dairy for 13%, and preserves for 15% of their supply. Over 2,300 contracts have been signed with new economic actors, aiming to double 2024's production of 56,000 tons and exceed 100,000 tons this year.
Success stories include the Sancti Spíritus Meat Company, which diversified into pigs and poultry, and the Ciego de Ávila preserves company, financing 500 hectares of tomatoes and processing over 7,000 tons. Online sales surpassed 25.9 million dollars (100.5% growth), although tourism sales fell by 11%, totaling 38.6 million dollars, due to reduced visitor arrivals.
Emergency Measures and Structural Overhaul
In response to the widespread decline, the ministry has begun implementing a series of measures, including:
- Reorganization of the ministry.
- Foreign currency financing schemes for the Fishing Industry Business Group and the Shrimp Farming Company.
- Opening USD accounts for the online platform and Cuba Ron Corporation.
- Authorization to charge 50% of the fishing value in dollars for tourism purposes.
- Creation of a chocolate and cocoa joint venture in Baracoa.
- Introduction of new shrimp genetics in September, a first in 25 years.
- Ministry reorganization with new science, informatics, and communications departments, and the transformation of the Food Research Institute into a self-funded scientific unit.
Despite acknowledging the accumulated failures, the minister concluded by emphasizing the need to "accelerate processes" and rely on the potential of new economic actors as a lifeline. However, this approach continues to place the burden on third parties—private and non-state producers—to sustain a state-run industry in crisis, while the bureaucratic machinery remains largely unresponsive.
In a country where scarcity has become the norm, calls to "improve production outcomes" ring hollow without real reforms to dismantle the system's internal constraints. Minister Alberto López Díaz's address laid bare a bleak picture of Cuba's food industry, marred by inefficiency, structural decay, and years of poor economic decisions.
Despite official rhetoric emphasizing "reorganization" and "productive linkages," the reality is that figures show alarming setbacks in key sectors like fishing, dairy production, coffee, and preserves. The announced measures arrive late, and while they may have some mitigating effect in the second half of the year, they do not address the root problem: a centralized economic model that stifles productivity and limits sector development.
The explicit acknowledgment of massive losses, insurmountable debts, and systematic plan failures not only highlights the failure of the current state management scheme but also casts doubt on the sustainability of the country's food system. While the government insists on "new structures" and "alliances," millions of Cubans face daily shortages, rising costs of basic goods, and increasing food insecurity.
Cuba's food crisis is no longer a temporary issue or the result of "distortions": it is structural and persistent. It directly impacts the health, quality of life, and future of the nation. The continued decline in national production, the lack of essential supplies like wheat, powdered milk, oil, or soy, and the dependence on non-state actors to keep the system afloat, indicate that the model is exhausted.
The government's inability to ensure basic supply confirms that the food collapse is not a future threat but a present reality in Cuban households.
Understanding Cuba's Food Industry Crisis
What is the current state of Cuba's food industry?
Cuba's food industry is facing a severe crisis, marked by production shortfalls, financial losses, and dependence on non-state actors to maintain operations.
How has the government responded to the food industry crisis?
The government has announced a series of emergency measures, including restructuring the ministry, forming joint ventures, and introducing new financing schemes to address the industry’s challenges.
Why is the Cuban food industry struggling?
The industry struggles due to a centralized economic model that limits productivity, shortages of essential supplies, and a heavy reliance on private and non-state actors for production.