Cuba struggles to revive its iconic sugar industry

The men of the Yumuri sugar co-operative in Cuba have worked the cane fields around Cienfuegos since they were old enough to wield machetes. Miguel Guzmán, coming from a family of farm hands, has known nothing but cutting cane since he was a teenager. Sugar was historically Cuba’s economic backbone, integral to its export economy and the rum industry. Older Cubans recall the island’s prosperity being built on the labor of families like Guzmán’s.

Today, however, Guzmán admits that the sugar industry is more broken and depressed than ever, even compared to the post-Cold War era when the Soviet Union’s lucrative sugar quotas ended. Inflation, shortages of basic goods, and the long-standing US economic embargo have severely impacted Cuba’s economy, with the sugar sector particularly hard hit.

“There’s not enough trucks, and fuel shortages mean we sometimes wait days before we can work,” says Miguel, as he waits for Soviet-era lorries in a small patch of shade. Lost hours of harvest due to idle men and machinery have drastically reduced production levels. Last season, Cuba’s sugar production dropped to an all-time low of 350,000 tonnes, far below the 1.3 million tonnes produced in 2019.

Despite being one of the fastest cutters in his team, Miguel receives no financial incentive beyond his passion for the trade. “My wages barely buy anything anymore,” he says, highlighting the worsening inflation. “But what can we do? Cuba needs the sugar.” Indeed, Cuba now imports sugar to meet domestic demand, a far cry from its glory days when Cuban sugar was globally renowned.

At Ciudad Caracas, a 19th-century sugar mill near Cienfuegos, the air is thick with the smell of molasses. Workers there grind sugarcane into pulp and juice using obsolete, rusting cogs. The mill is one of only two dozen functioning sugar mills in Cuba. “That’s four more than originally planned for this season, thanks to the hard work of the workers,” says Dionis Pérez, communications director of the state-run sugar company Azcuba. However, he acknowledges that the other 29 mills are idle.

Juan Triana from the Centre for Studies of the Cuban Economy in Havana calls the situation disastrous, noting that Cuba’s sugar production levels have regressed to those of the mid-19th century. The decline in sugar impacts other sectors, including rum exports. The “maximum pressure” policy of former US President Donald Trump, continued by President Joe Biden, has exacerbated the situation. However, years of mismanagement and underinvestment have also devastated the industry. Today, sugar receives less than 3% of state investment, with the government prioritizing tourism.

Martin Nizarane, a new breed of Cuban private entrepreneur, operates a company producing yogurt and ice cream near Havana. Despite economic challenges, his business, which imports sugar from Colombia, aims to double production soon. Cuban President Miguel Díaz-Canel has praised Nizarane’s business as a model for the future, representing a shift towards capitalism. Nizarane denies any special privileges due to ties with the Cuban Communist Party, asserting that his company operates like any other private enterprise.

Sugar’s decline is just one facet of Cuba’s struggling economy. In early March, the government imposed a five-fold increase on subsidized fuel prices amid rising inflation. This decision, while necessary according to officials, has hurt ordinary Cubans like Manuel Domínguez, who struggles with the unaffordable cost of fuel. Domínguez and many others feel a disconnect between wages and the cost of living.

Shortly after, economy and planning minister Alejandro Gil Fernández was arrested for alleged corruption, leading some to speculate he was scapegoated for the economic crisis. Many believe more significant changes are needed to rescue Cuba from its economic troubles.

In the sugarcane fields of Cienfuegos, workers continue their grueling labor with little hope. The island’s famous refrain, “Without sugar, there’s no country,” is being severely tested. According to economist Juan Triana, the decline of the sugar industry erodes a fundamental part of Cuba’s national identity and economic foundation. “For over 150 years, the sugar industry was the main export income and the locomotive for the rest of the economy. That’s what we’ve lost.”

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