QUALITATIVE ANALYSIS

Quick Facts

  • Organic food and beverage consumption in Cuba is expected to see a 2.8% CAGR and $1.9mn absolute value growth over the forecast period (2015–2018).
  • Despite improving US–Cuba relations, the Cuban economy faces serious challenges, including a steadily deteriorating manufacturing sector and persistent power and water shortages.
  • The Cuban population is aging, which could place further strains on its economy and government finances in the medium term.

General Economic & Demographic Landscape

Economy

  • The government provides a food ration, as well as free health care and education, and subsidized utilities. However, even an internal government report acknowledges that the food ration meets only 40–60% of the population’s nutritional needs.
  • The economy faces a number of serious problems, including a steadily deteriorating manufacturing sector and persistent shortages of power and water. The electrical and water supply systems are desperately short of the funds required to carry out urgently needed repairs, resulting in shortages in many parts of the island. 
  • Now that US–Cuba relations have been eased, Cuban planners hope to attract billions of dollars in foreign investment each year, but that goal will be difficult to meet. European, Canadian, Asian, and Latin American investors have taken the lead, signing deals to build resorts and hotels, and investing in development zones. American investors, however, face a much more difficult situation, which extends beyond the embargo itself.

Population demographics: 

  • Demographic trends will pose an increasing challenge for policy makers in the future. The Cuban birth rate has been below the replacement rate since 1978. Cuban demographers estimate that the island presently has around two million people over the age of 60 and that the number will rise to 3.25 million in 2030. Such trends will not be helpful for long-term growth in productivity.

Income & expenditure: 

  • Cuba’s real GDP is expected to grow by 2.8% in 2016, down from 2.9% in 2015. 
  • The real value of private final consumption rose by 1.5% in 2015 and gains of 2.7% are expected in 2016. The gradual easing of economic restrictions has slowly created a small but growing consumer class. Much of their activity, however, remains outside the formal market. Remittances, coming mainly from Cuban Americans, total about US$1 billion per year. Roughly a quarter of all Cuban families receive regular dollar payments from relatives in the US.
  • Growing income inequality has become a concern. It results from access to foreign exchange through remittances, self-employment, and operations in the informal market. Economists estimate that around 20% of the population is impoverished.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

 

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

708.5

763.9

795.3

714.7

724.6

735.6

748.0

0.3%

1.5%

Organic packaged food and beverages consumption

19.2

22.4

23.9

21.7

22.2

22.9

23.6

4.2%

2.8%

Organic packaged food consumption

19.0

22.2

23.7

21.6

22.0

22.7

23.3

4.4%

2.6%

Organic beverages consumption

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.0%

0.0%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

2.7%

2.9%

3.0%

3.0%

3.1%

3.1%

3.2%

-

-

 

 

Economic & demographic data

 

Data type

2012

2013

2014

2015

2016

2017

2018

 

 

 

 

 

 

 

 

Total population

11.3

11.4

11.4

11.4

11.4

11.4

11.4

% Middle and upper class of total population

-

-

-

-

-

-

-

% Population aged 65+

13.1%

13.3%

13.6%

14.0%

14.4%

14.8%

15.3%

% Population aged 0-14

17.1%

16.8%

16.6%

16.3%

16.0%

15.8%

15.6%

% Population with higher education degrees

-

-

-

-

-

-

-

Average number of children per household

0.6

0.6

0.6

0.6

0.6

0.5

0.5

GDP per capita

6,448.2

6,789.9

7,274.3

7,514.6

7,807.1

8,106.3

8,409.7

Consumer expenditure per capita (US$)

3,727.3

3,914.8

4,192.1

4,251.7

4,398.8

4,566.8

4,734.1

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

-

-

-

-

-

-

-

 

Retailer & urban area data

 

Data category

Rank

Urban Area/retailer

Population 
(mns)

 

 

 

 

Top urban areas by population (2015)

1

Havana

2.1

Top urban areas by population (2015)

2

-

-

Top urban areas by population (2015)

3

-

-

Top urban areas by population (2015)

4

-

-

Top urban areas by population (2015)

5

-

-

Top grocery retailers by sales (2015)

1

-

-

Top grocery retailers by sales (2015)

2

-

-

Top grocery retailers by sales (2015)

3

-

-

Top grocery retailers by sales (2015)

4

-

-

Top grocery retailers by sales (2015)

5

-

-

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

The Ministry of Public Health’s Institute of Nutrition and Food Safety (INHA) is responsible for regulating imports of consumer-ready foods.

The Ministry of Agriculture regulates imports of animals and animal products, as well as imports of plants and plant products.

  • The Ministry’s Institute of Veterinary Medicine (IMV) covers live animals and animal product imports. 
  • The Ministry's National Center for Plant Health (CNSV) covers mports of live plants and plant products.

 

Agency(s) Contact Information: 

Ministry of Public Health
Instituto de Nutrición e Higiene de los Alimentos (Institute of Nutrition and Food Safety) Ministerio de Salud Pública (Ministry of Public Health) Infanta No. 1158 entre Llinás y Clavel Centro Habana 
Ciudad de la Habana, Cuba CP 10300
Phone: 011 (537) 878-1429, 878-5919, 870-5531 to 34
Fax: 011 (537) 833-8313
E-mail: dirinha@infomed.sld.cu & dsi@sinha.sld.cu
Web

Ministry of Agriculture
Conill esq. Ave. Carlos Manuel de Céspedes, Plaza de la Revolución
Contact: webmaster@min.eicma.cu
Web

Imported Products Requirements

Imported Products: 

The government-operated Empresa Comercializadora de Alimentos (ALIMPORT) is the sole buying agency for US agricultural products. ALIMPORT negotiates for client Cuban entities and handles all purchasing, documentation and logistics. 

USDA export certificates are required for bulk grain and meat products, particularly for fresh, frozen, and canned meats. Enforcement is carried out mostly at the port of entry, where scrutiny can be intense and at the importer warehouse level. Enforcement at the retail level is minimal.

Additional Information

Additional Information: 

In March 2016, United States Department of Agriculture and the Republic of Cuba Ministry of Agriculture signed a memorandum of understanding. Organic production and certification processes are among the potential priorities for cooperation between the two agencies. 

The United States maintains a trade embargo with Cuba. However, agricultural commodities are exempt provided that export transactions meet certain legal criteria. USDA's Foreign Agriculture Service maintains a list of US agricultural products eligible for export to Cuba.

USDA's Report on Cuba's Food and Agricultural Import Regulations and Standards (2015)

Definitions

Review definitions of terminology included in this website.