Monday, April 27, 2009

CUBA LIBRE!

4-27-2009


Cubans are not only very good at what they do, they excel at it what ever that may be; scholarship; over 98% of their population are literate, boxing, music, dancing, tobacco growing, cigar making, rum distilling, baseball,volleyball, fishing, (remember all those boat - pulling marlins that Old man used to catch?), and who in their right mind would argue about their ability to procreate some of the most beautiful women in the planet?


The tide is turning.-

What would happen to the current produce winter growers if the embargo is lifted and Cuba starts growing perishables during our cold season months? Think about it.

Potential.-

Cuba, with 6.6 million hectares of farmland is a potential force to be reckoned with.
According to official data,only 50% of that volume is being worked on today; the remaining 3 Million hectares at a historical interval for new crops and newer still opportunities. Sugar may or may not be an option anymore as other crops could entice the government to higher revenues as in per package fee.

Organics may very well be one of the best options for Cuban agriculture as decades of zero to very low budgets for farmers required them to find alternative methods, one of them being the cultivation of Vermi-culture(Worms that process organic matter into very high nutrients = plant food) to the extent of becoming experts at this and other low cost organic but very effective techniques.

The world is watching.-

Each country has their own labor laws and as long as each country has it’s people happy they can do pretty much what they believe to be the best option at the time for them.

Take China and their human rights laws as a practical example, they are long from being awarded the mother Theresa of Calcutta award for their existing humanitarian practices, however their point of comparison is before they opened up for foreign investment and today;

Ask almost any Chinese citizen that had the privilege of experiencing both eras and they will certainly tell you that they are better off today than before. Investors are happy, China feds are happy, customers are happy, it’s all a big happy family. Except for the many who went out of business, didn't see it coming, or didn't believe in change.

Another example;- Sillicon Valley what once used to drive a vibrant and thriving San Jose has moved to other countries; think India.

Dejavu.-

Cuba on the other hand will also have a point of comparison once foreign investment is fully open as in Agricultural open. Their labor price tag will be lower than US production costs, investors will come in with the latest technology available and a good part of the spot and contractual markets will belong to Cuban grown products, everybody will be a happy camper; within that circle that is.

Convenience.-

90 miles @ 10 knots in a ferry that’s about a 10 hour haul ! ( That's in an old ship)

I can hear them: " Caballeros, la costa del este es nuestra!" ( Gentleman the east coast belongs to us)

....so what happens to Florida & Mexico's historical supply for that area?

Probability.-

Some like to believe that day is long from now, that they will need to provide the US with excellent finished goods products in order for them to become players in the market and that Cuba is not up to par to supply the US demand. I say BS! All it takes is angle, and you know there is an abundance of visionaries ready to pull the trigger.

Have you ever experienced the power of money?
What exactly money can do in the right hands and with the right attitude?
Anybody?

Regardless of the example that came to your mind, you got the picture.

That day is closer than we think and the box as we knew it could become smaller.


Act now and save you arse!.-

Options:

1- Start looking for investment opportunities today in Cuba;

2- Outsource you knowledge & skills as a grower to the Cuban government; (governmental partnerships tend to be rich and flavorful)

3- Get in cahoots with a strong distributor/ marketer company right now and become a preferred grower so that you are invited to farm for them; (start the proposal right now!)

4- Find out which countries are Not participating in the Helms- Burton act; (EU) thus can do business with Cuba (Spain, Holland, etc, do these guys farm high tech?); (they could be one step ahead of us when that time comes, since they are present at the island already with other venues)

5- Learn the words: "Cuba, Cubano, Chico, Cuban, Cubans & Conio!" which will be the new ones for a while.

6- Pretend that this preposterous embargo will continue - ..... NOT .

7- Bet on Baja!

8- Great opportunity for gobblers who strive on volume for power negotiation of contracts!


Reflection.-

In 1962 at the time that the embargo took place, my father was picking tomatoes for S&H in Gonzales, and most of you, your parents or grandparents were already either growing, brokering, shipping, storing, consolidating, or something or other related to winter crops in one way or another, with Mexico being the only competition to Florida or vs.

Today we have competition from within and as far away as the EU.

Soon(3 years or less) we will have an extraordinary amount of real estate that will be producing substantially more volume of organics & conventional toms, bells, cucs, to name a few and they would be hitting the market at very competitive prices, and at least for the east coast this will have an effect, as it is with produce, every little bit counts, one way or another it is felt.

Every market has a finite limit for absorbing supply at break even prices, one more truck crossing, one more truck leaving the packing shed besides that limit and the market is gone.
I have seen it happen at the Mexico city terminal, Guadalajara,Monterrey, LA, SF & Nogales. I am sure it is the same the world over; supply & demand. One top producing packing shed can produce at least 5 trucks before noon on any given day at peak harvest season, at least!

I don't see Cuba as just another Caribbean country, my perception is that this one has a special meaning for a lot of people, and I believe that measures will be taken to ensure that the goals are met and that the mission succeeds.

The only ones that may hamper this effort would be the Florida growers through their lobbyists, and I doubt that they could make a dent. I don't see how.

Had the embargo not taken place what would have happened with current winter production regions?

Would we be producing the same volumes?

Would they be the same as today?

How much of what we have today do we owe to that era's political upheavals?

Amigos, lead ... sinks......double time!

-fds