Cuba agrees to buy a record $20 million in ND products
By MARK CONLON, Editor
Thursday, November 10, 2005 10:13 AM CST
HAVANA - The North Dakota trade team that went to Cuba to participate in the Havana International Trade Fair may have been trimmed by the effects of Hurricane Wilma, but their efforts were certainly rewarded when Cuban officials signed an agreement to buy a record high $20 million worth of North Dakota agricultural products.
The trade team, led by North Dakota Agriculture Commissioner Roger Johnson, announced sales of peas, pinto beans, lentils and hard red spring wheat during a phone conference Nov. 5. Making the announcement with Johnson was Pedro Alvarez, chairman of Alimport, the principal Cuban importer of food supplies, and Sen. Byron Dorgan, D-N.D., from his Washington D.C. office.
“Cuban officials have agreed to negotiate and sign contracts worth $20 million with North Dakota-based companies in the next 18 months,” said Johnson. “This is a significant increase in North Dakota's sales to Cuba, which have totaled about $21.2 million since 2002.”
Dorgan, who has been a proponent of opening trade with Cuba and has sponsored legislation that would make that easier, talked with Alvarez before the trade fair to discuss the potential purchases that could come from this trade mission.
“This is a very big step in our ability to market our farm products to Cuba. This is great news for North Dakota farmers and ranchers,” Dorgan said, adding that it is also a big step for the Cuban people “to have access to the best agricultural products on earth.
“This is a market that we will continue to develop in years to come,” he added.
Johnson said $20 million of contracts were signed for yellow peas, garbanzo beans and pinto beans, and that the remainder would be negotiated during the next 18 months.
The North Dakota delegation included Justin Flaten, Garrison, JM Grains; Jerome and Marilyn Knudson, Crosby, Superior Grains; Mark Kok, Plaza, North Dakota Dry Pea and Lentil Association; Wayne Schmitz, Minot, Premier Pulses; Donna Thronson, Bismarck, North Dakota Department of Agriculture, and Johnson.
Six others were also scheduled to go but Hurricane Wilma forced the team to reroute flight plans and extend the tip by two days which forced other trade team members to cancel.
“More North Dakota companies had planned on being here, but Hurricane Wilma put a crimp in those plans,” Johnson said. “We had hoped to have some other commodities with us, notably onions, but these sales can be negotiated later.”
Besides onions, Johnson also said Cuban officials were interested in potatoes, among other commodities.
Dorgan and Johnson also signed a joint communiqué with Alvarez in which the Americans recognized Alimport's steadily increasing efforts to buy U.S. food commodities, and Alvarez acknowledged North Dakota as a continuing and important supplier of agricultural products. And while the potential for future sales is great, according to Alvarez, it could be even greater if the United States would change its current restrictions on trade with Cuba.
At present, U.S. policy stipulates that all sales to Cuba must be paid for in cash before the commodity even leaves the U.S.
By MARK CONLON, Editor
Thursday, November 10, 2005 10:13 AM CST
HAVANA - The North Dakota trade team that went to Cuba to participate in the Havana International Trade Fair may have been trimmed by the effects of Hurricane Wilma, but their efforts were certainly rewarded when Cuban officials signed an agreement to buy a record high $20 million worth of North Dakota agricultural products.
The trade team, led by North Dakota Agriculture Commissioner Roger Johnson, announced sales of peas, pinto beans, lentils and hard red spring wheat during a phone conference Nov. 5. Making the announcement with Johnson was Pedro Alvarez, chairman of Alimport, the principal Cuban importer of food supplies, and Sen. Byron Dorgan, D-N.D., from his Washington D.C. office.
“Cuban officials have agreed to negotiate and sign contracts worth $20 million with North Dakota-based companies in the next 18 months,” said Johnson. “This is a significant increase in North Dakota's sales to Cuba, which have totaled about $21.2 million since 2002.”
Dorgan, who has been a proponent of opening trade with Cuba and has sponsored legislation that would make that easier, talked with Alvarez before the trade fair to discuss the potential purchases that could come from this trade mission.
“This is a very big step in our ability to market our farm products to Cuba. This is great news for North Dakota farmers and ranchers,” Dorgan said, adding that it is also a big step for the Cuban people “to have access to the best agricultural products on earth.
“This is a market that we will continue to develop in years to come,” he added.
Johnson said $20 million of contracts were signed for yellow peas, garbanzo beans and pinto beans, and that the remainder would be negotiated during the next 18 months.
The North Dakota delegation included Justin Flaten, Garrison, JM Grains; Jerome and Marilyn Knudson, Crosby, Superior Grains; Mark Kok, Plaza, North Dakota Dry Pea and Lentil Association; Wayne Schmitz, Minot, Premier Pulses; Donna Thronson, Bismarck, North Dakota Department of Agriculture, and Johnson.
Six others were also scheduled to go but Hurricane Wilma forced the team to reroute flight plans and extend the tip by two days which forced other trade team members to cancel.
“More North Dakota companies had planned on being here, but Hurricane Wilma put a crimp in those plans,” Johnson said. “We had hoped to have some other commodities with us, notably onions, but these sales can be negotiated later.”
Besides onions, Johnson also said Cuban officials were interested in potatoes, among other commodities.
Dorgan and Johnson also signed a joint communiqué with Alvarez in which the Americans recognized Alimport's steadily increasing efforts to buy U.S. food commodities, and Alvarez acknowledged North Dakota as a continuing and important supplier of agricultural products. And while the potential for future sales is great, according to Alvarez, it could be even greater if the United States would change its current restrictions on trade with Cuba.
At present, U.S. policy stipulates that all sales to Cuba must be paid for in cash before the commodity even leaves the U.S.
“American companies represented here were operating at a great disadvantage to Canadian counterparts,” Alvarez said. “If no restrictions existed, sales (to the U.S.) could multiply.”
Alvarez also thanked Dorgan for his efforts to introduce legislation to ease trade, and Johnson for his continuing efforts in making these trade trips to the island country.
“Using food as a weapon in foreign trade policy is always inappropriate,” Dorgan said. “I will continue to work to ensure we retain access for American producers to Cuba's markets so we can forge more deals like this in the future.”
Johnson agreed that U.S. policy needs to change.
“The recent Administration demand that all sales to Cuba be cash has made it much more difficult to do business here,” Johnson said. “International banking institutions are increasingly unwilling to put up with the onerous regulations and the mountains of paperwork. The worst of it is that it's the Cuban people and North Dakota producers who pay that extra cost.”
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