Cuba sugar industry to undertake overhaul
"I don't like it," Bonilla says of the government's decision to cut sugar's
industrial
capacity by 50 percent and close many of its 154 sugar mills, including
the one he
has lived near all his 65 years.
"Since I was born I haven't done anything else," Bonilla said in the village
of sugar
worker families built around the Osvaldo Sanchez mill in Havana province,
about 20
miles southeast of the capital.
As world prices tumble, Cuba is struggling to remain competitive by remaking
its
sugar industry and replacing about half of the 31/2 million acres once
used to grow
cane with crops that bring more income or help feed Cubans. The overhaul
will
change the lives of hundreds of thousands of Cubans.
Sitting in the doorway of the home he shares with his wife and two small
children,
Bonilla is anxious about the change. He has spent the past 49 years operating
the old
steam trains long used to transport cane.
The government promises workers will not suffer because of the overhaul.
In the November-to-April harvest season this year, Bonilla said the government
paid
workers a $30 to $40 bonus in January -- along with their average monthly
salary
of just more than $20.
At another nearby mill -- Amistad con los Pueblos, or "Friendship with
Nations" --
authorities are examining ways to retire older workers. For younger workers,
alternatives include training in new trades, or agricultural jobs such
as rice
cultivation or ranching.
"Land that isn't used for sugar can be used for rice," said Rafael Villegas,
vice
director of the National Institute of Sugar Cane. He said an islandwide
study
completed last year found only about half of the 5 million acres of land
traditionally
devoted to cane was suited for that use.
Foreign analysts say Cuba is on the right track by trying to downsize.
"It is the right step at the right moment," Peter Baron, president of the
London-based International Sugar Organization, said during a sugar conference
here in June.
By focusing on land best suited for sugar cultivation, industry officials
hope to
improve the yield from about 16 tons of cane for every acre to 23 tons
in three
years.
In addition to the worldwide price slump, the Cuban sugar industry has
been
battered by Hurricane Michelle, which marched across central Cuba in early
November.
A U.S. Agriculture Department report in December estimated Michelle caused
about
$75 million in damage to the 2001-2002 sugar harvest that just ended. The
same
report estimated Cuban sugar exports -- which have averaged $550 million
annually
-- fell to about $476 million.
The hurricane also caused heavy damage to mills. Even before Michelle,
Cuban
authorities estimated it would cost $4 million to $5 million to modernize
each one.
Baron says foreign capital would be needed to undertake such renovations.
"We are always open to hearing proposals," Sugar Minister Ulises Rosales
del Toro
said recently about opening the state-run industry to foreign capital.
Such
investment thus far is extremely limited.
Cuba, nevertheless, remains among the world's most important sugar exporters
--
fourth behind Brazil, the European Union and Thailand. For Cuba to stop
producing
sugar altogether, Baron said, "would be a sin."
Copyright 2002 The Associated Press.