Alabama farmers want to export more to Cuba

ByABC News
July 30, 2007, 2:00 PM

JASPER, Ala. -- Dorman Grace looks over his north Alabama farm and wonders how chickens may play a role in ending the trade embargo between Cuba and the United States.

Grace, a third-generation poultry and cattle farmer, and others like him, are already able to do business with Cuba under a law passed by Congress in 2000 allowing the sale of humanitarian and agricultural products to the island nation, which slightly eased the trade embargo in place since 1962.

Since the law began to be implemented in 2001, Cuba has imported about $1.55 billion in goods from the United States, according to the U.S.-Cuba Trade and Economic Council. The Cuban market is large: The nation imports half to two-thirds of its staples, according to a July U.S. International Trade Commission report.

Alabama has been aggressively taking advantage since 2003.

The U.S. Commerce Department estimates Cuba will import $300 million to $350 million in goods from the USA this year. Alabama will provide about a third of that, at $100 million to $120 million in goods, according to the state's Department of Agriculture and Industries.

That's consistent with recent history. Alabama businesses exported $100 million or more of goods to Cuba in each of the past three years, according to state figures.

A 2005 Texas A&M study showed Arkansas leading the nation with exports to Cuba, with an estimated $167 million in trade a year. Alabama was second at $120 million, followed by California ($98 million), Iowa ($71 million) and Texas ($54 million). Many Alabama farmers would like to see that business expand further.

"It's a global world we live in," says Grace, 51, whose farm produces about 110,000 chickens a year. "We need markets for what we produce. Unlike the American market, the Cuban market prefers dark meat, so that's beneficial. We trade with countries around the world. Why not Cuba?"

Last year, 66% of the wheat imported by Cuba came from the USA. Other staples imported included: corn, 71%; rice, 77%; poultry, 65%; pork, 42%; soybeans, 100%; and animal feed, 76%, according to a July U.S. International Trade Commission report.