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Tuesday, November 01, 2005

Michigan farm delegation reaches export deal with Cuba

Michigan farm delegation reaches export deal with Cuba
BY JOHN FLESHER
ASSOCIATED PRESS
Monday, October 31, 2005

TRAVERSE CITY -- Cuba is expected to buy $10 million worth of Michigan farm products in the next 18 months, including apples, dry beans, potatoes and livestock, state Agriculture Director Mitch Irwin said.
A delegation from the state signed Michigan's first-ever trade promotion agreement Monday with the Cuban food import company Alimport, Irwin said in a phone interview from Havana during the communist nation's annual trade fair.
Negotiations were continuing toward deals for specific products.
"We're making good progress," Irwin said. "It's our hope that we will be able to accelerate these discussions and obtain these contracts in the next several months."
The United States slapped at trade embargo on Cuba more than 40 years ago, but Congress in 2000 allowed heavily regulated sales of U.S. food there.
Cuba has contracted to buy more than $1.4 billion in American farm goods in the past four years, including small purchases of Michigan beans and turkeys.
"It's been fairly limited up to now. It's an evolutionary process," said Jim Byrum, chairman of the Michigan Agriculture Commission. He described Cuban trade officials as "very hospitable, very anxious to do business with the United States and develop better relations."
Michigan exported $919 million worth of agricultural products in fiscal 2004, led by soybeans ($201.5 million), feed grains ($191.4 million) and vegetables ($137 million).
Canada is by far the largest foreign market for the state, followed by Mexico and Japan, said Dave Kleweno, who compiles statistics for the U.S. Department of Agriculture and the state of Michigan.
The Michigan Farm Bureau has pushed to open the Cuban market for years, said its president, Wayne Wood, who also made the trip to Havana.
"Trading is about building relationships so there's confidence both parties can deliver on the terms of the agreement," Wood said. "I feel good about the relationships we're developing."
Aside from beans, fruit and potatoes, the Cubans were showing interest in dry milk and dairy cattle, he said.
Other members of the delegation were Don Armock of Riveridge Produce Marketing; Bob Green of the Michigan Bean Commission; Ezequiel Gimenez of North Bay Produce; and Julia Hersey of the Michigan Apple Committee.
Copyright © 2005 Detroit Free Press Inc.

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