Illinois farmers to see trade potential in Cuba

Illinois farmers to see trade potential in Cuba
author_carrie By: Carrie Muehling

Eighteen Illinois farmers will see market opportunities in Cuba up close
during this year's Illinois Farm Bureau Market Study Tour.

The group will also include two journalists and two Illinois Farm Bureau
(IFB) staff members, said Tamara Nelsen, senior director of commodities
with IFB.

Nelsen said the group typically goes to a market that is a huge
potential market, like China, or one that they can learn something from,
like European countries they have visited. Another destination has been
potential competitors like Brazil. Cuba, she admits, is a bit different.

"Cuba has just been a fascination to Illinois farmers for many years,"
said Nelsen.

The group will be looking for direct trade opportunities either now or
in the future. It is a small market – 10 years ago Cuba was only a $30
million market compared to China at that time, which was projected to be
a $2 billion market. But Cuba is already a huge destination for tourism
and its proximity makes the United States a target for exports to the
country.

"As an island nation, they don't have the ability to produce all of
their own food products, and so they will be, kind of like Hawaii or any
of the Caribbean nations, a major importer of not only processed and
packaged food and beverage products, but also of feed products because
they will be doing some of their own dairy and livestock," explained Nelsen.

The group plans to visit the U.S. Interest Section in Cuba, where they
will hear from staff there about the Cuban economy and market. They
will also visit with Alimport, the major state-run company that handles
all import of food and feed products into Cuba. They plan to meet with
a Mexico-based company that does grain milling in Cuba, as well as
agricultural producer groups similar to the Farm Bureau. And of course
there are farms on the agenda, as well as a farmer's market and a
supermarket.

Nelsen said it has been a challenge to set up this particular trip.

"In doing so, you realize how trade barriers of any sort, whether
government imposed or bureaucratically imposed, just make it so much
harder to trade with people who want to either buy something from you or
sell you something," she said.

Group members had to get permission from the U.S. Treasury Department as
well as business visas from the Cuban government. Everything is under
strict control, so each entity they work with, including their hotel and
transportation outlets, has to know that passports are valid, as well as
the Cuban visas.

"It's all very regulated if you're going down there for business," said
Nelsen.

Illinois is a state that Cuban people recognize. Several governors have
visited Cuba and several delegations including commodity groups have
gone there in the past.

"What's interesting is that albeit a small market, they do know who
Illinois is. They do know that we've had interest," said Nelsen. "The
Cubans know Illinois and they know a lot of our products. They know
people from Illinois have been trying to export products to them for
years, so they have a real fond image and I think they are very eager to
establish relationships so we're looking forward to that."

The group departs June 28 and returns July 2.

http://wjbc.com/illinois-farmers-to-see-trade-potential-in-cuba/