Cuba inks deal for N.D. farm products
By MIKKEL PATES
Grand Forks (N.D.) Herald
HAVANA - A historic North Dakota agricultural trade delegation
to Cuba, led by Gov. John Hoeven, finished with a document signing ceremony
Thursday in
which the North Dakota Farm Bureau promised to help consummate
sales of state farm products totaling about $2 million.
The four-day visit, organized by the North Dakota Farm Bureau,
was designed to strengthen trade possibilities with a country that has
been out of the
loop with the U.S. government for more than four decades because
of its socialist/communist government.
The North Dakotans ended their visit with a ceremonial signing
of sales “agreements to purchase” designed to lead to deals on 500 tons
of chickpeas,
500 tons of lentils, 4,000 tons of barley and 5,000 tons of
green or yellow peas, with a total value of over $2 million.
The commodities together would fill 128 rail cars. The North Dakota Farm Bureau is acting as a “facilitator” between North Dakota sellers 
and Alimport, the government-owned Cuban company that handles the country's imports of food.
“We're not sales agents, we're a representative organization,”
said Eric Aasmundstad, president of the North Dakota Farm Bureau. Aasmundstad
and
Hoeven had verbal agreements that they said would commit Alimport
to buying products from North Dakotans, but leave the details to be confirmed
by
the actual sellers, and perhaps through the aid of experienced
middlemen with appropriate financial backing.
What's next
“We're going to take these prices home, the volumes and prices
you're willing to pay, to export companies, so they will know what they
have to do,
when you want it, and we're going to do that upon our return
home,” Aasmundstad told Alimport officials Thursday.
“These people can work to try to give you this product at this price. That's what we're going to do.”
Pedro Alvarez, chairman and chief executive officer of Alimport,
Cuba's trading company, used a baseball reference to describe the result
as a “warmup”
for potential increased sales between the North Dakota and Cuba.
It was only one of numerous short-term delays that participants believe
will lead to
longer-term advancement of freer trade.
The Cubans initially wanted the Farm Bureau to agree to solid, legal deals, but in the end settled for the ceremonial deals.
Feverish activities
The deals marked the end of four days feverish activities. An
early highlight was the Tuesday opening of a cargo container with large
sample lots of five
commodities - spring wheat, wheat flour, green peas, yellow
peas and barley - that the Cubans would like to buy more of.
The group toured nearby wheat mills, a pasta factory and a bountiful
citrus and vegetable cooperative, with thousands of acres of impressive
groves.
The Farm Bureau had preceded the week's visit in Cuba with a
fanfare and the shipping of a 20-ton “container,” involving four tons each
of hard red
spring wheat, wheat flour, green peas, yellow peas and barley.
Certifications
The Farm Bureau's cargo was expected to make a symbolic statement
of North Dakota agricultural quality and capacity but in the late stages
could have
become an embarrassment because the organization hadn't anticipated
the need for required phytosanitary certifications on some of its products.
The wheat and wheat flour didn't require the certifications,
but the peas and barley did. In the end, the North Dakota Agriculture Department
back home
helped to complete the certifications, Aasmundstad said. He
acknowledged he and the Farm Bureau hadn't known all he should have known
about the
phytosanitary requirements, attributing the oversight to the
myriad details of making the trip happen.
The week also involved sometimes dicey shuttle negotiations between
Aasmundstad and Alvarez, who was in the national U.S. news early this spring
when his visa to travel in the United States was denied by the
Bush administration. Alvarez praised the delegation for “an extremely professional
visit”
that will enable North Dakota farmers to increase exports of
staples to Cuba.
Alvarez said that although wheat is not one of the products imported
and that shipments until now have been small and symbolic, the commodity
“has
not been overlooked.” Alvarez said that although financing couldn't
be arranged for the purchases because of current U.S. policy, and are in
cash as
required, “we hope that one day trade will be both ways.”
Invited to return
“The Cuban people are a friendly people with both the people
of the United States and North Dakota,” he said, inviting the delegation
to return in
September, when the Farm Bureau is scheduled to be involved
in a first-ever U.S. Food and Agriculture Exposition.
On the political side, the governor steered clear of statements
disloyal to the Bush administration, which strongly opposes normalizing
trade with Cuba
under the Castro administration without changes in Cuban policies,
including the ability for outside companies operating in Cuba to hire their
own
workers and for the workers to organize in their own, nonstate
unions.
The visit was punctuated on Wednesday with news of a flurry of
votes from the U.S. Congress that - if passed and signed into law - could
lead to more
normalized trade. The Cubans seemed cheered by the votes, as
well as Hoeven's visit.
“Just his being here is significant,” said one Cuban government
official involved in the event, who spoke on condition he not be identified.
The official said
the Cubans understood the governor's political restraints and
expected nothing more than his efforts to promote trade.
The Herald is sharing costs for Pates' trip with the North Dakota Farm Bureau.