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its self-sufficiency. Products other than sugar and tobacco have increased from only 4 percent of the total exports in 1924-26, to about 16 percent in 1940. Similarly, agricultural products declined in importance from constituting about one-third of total imports in 1924-26 to only about one-fourth of the total in 1940.

The most significant development has been in the livestock industry. Production of beef increased sufficiently to permit imports formerly amounting to 40 to 50 million pounds (costing 5 to 6 million dollars annually) to be reduced almost to zero, while exports of chilled beef in 1940 rose to about 12 million pounds and in 1941 to 42.5 million. The hog industry has also increased but not as rapidly. Pork imports, which amounted to 40 to 65 million pounds (costing 7 to 9 million dollars annually), have declined to only 4 million pounds in 1940. With respect to lard the change has been smaller; imports declined only about one-third during this period.

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Development of the dairy industry also stands out significantly. Evaporated milk (including condensed) is the most important item, with former imports amounting to nearly 50 million pounds, costing about 5 million dollars. By 1940 condensed milk, butter, and cheese were all on an export basis. Egg imports also declined from about 17 million pounds, costing 3 million dollars, to practically none. estimated that the total value of net imports of these edible livestock products, formerly at a level of 35 to 40 million dollars annually, has declined to a net-import value of only about 3 million dollars in 1940. The following shows the quantity of the principal livestock products imported annually for 1924-26 as compared with 1940:

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Imports of the following crops have all declined sharply: Potatoes, corn, beans, oats, and coffee. Two of these coffee and corn-are now on a net-export basis. The total import value of these items has been reduced from about 16 million dollars to net imports of only about 2 million dollars in 1940. Diversification has also taken place in the form of increased production of fruit and vegetables for export. However, two of the most important cereal products, rice and wheat flour, are still largely imported. Climatic conditions are not suited to the production of wheat, and there is usually insufficient rainfall for good yields of rice without irrigation.

Table 67 shows the estimated degree of self-sufficiency obtained by 1937-39 for the most important items of Cuban agriculture. The data on production and consumption in most cases are purely estimates rather than accurate statistics. Production in some cases, notably beef, condensed milk, and butter, has continued to increase since 1937-39 to a point where these products were on a net-export basis by 1940. Peanut-oil production also increased to a point of supplying possibly one-third of the total vegetable-oil requirements by 1940-41.

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TABLE 67.-Cuban self-sufficiency in principal agricultural products (estimated),

average 1937-39

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1 Production data are estimated except for sugar, tobacco, coffee, and cacao, which are official. 2 Import and export data are from official statistics.

3 Consumption data are estimated on the basis of amounts available for consumption and estimates by Hugo Vivó (19). In the case of sugar, the quantity available for consumption is greater than the estimated Consumption because of larger stocks at the end of the period. In the case of potatoes the quantity shown includes the relatively large requirements for seed.

4 Less than 12 million pounds.

5 Tobacco exports are unstemmed leaf equivalent and include leaf used in the manufacture of products for export.

6 The exports, and hence the degree of self-sufficiency, of beef, milk, butter, and vegetable oils have all increased materially since 1937-39.

7 Including evaporated, powdered, etc.

8 Excluding imports of malt, amounting to about 16 million pounds annually. Largely small quantities of millet.

As a whole, Cuba is now on a surplus basis in meat productie nexports of beef (1940-41) more than offset the quantity of pork products imported. Dairy-product and egg production also attained self-sufficiency by 1940, when exports of condensed milk, cheese, and butter exceeded imports. Vegetable and fruit production as a whole has long been on an export basis-bananas, pineapples, grapefruit, and winter vegetables have heavy export surpluses. Corn and coffee have also been exported during recent years.

The most important deficit agricultural items are rice, wheat flour, lard, and vegetable oils, which, together, accounted for three-fourths of all Cuba's agricultural imports. Domestic production of rice and flour is less than 10 percent of the requirements. The fat and oil deficiency is also large. Production of butter, lard, and peanut oil has increased, but the total combined deficiency of all fats and oils. still amounted to an estimated 100 million pounds in 1940 (largely lard and vegetable oils), while domestic production supplied only about 36 percent of requirements. Other items of deficiency are

beans and potatoes, of which domestic production supplied about 60 and 66 percent, respectively, of the requirements, and onions and garlic, most of which are imported.

AGRICULTURAL POLICY AND GOVERNMENT MEASURES

Cuba in fact had no clear-cut agricultural policy until recent years. Economic and political considerations determined trade and, in turn, production. During the preceding century Cuba's colonial agriculture, as in most undeveloped countries, was directed first to the production of cattle on an extensive ranch scale. Subsequently, coffee rose to great importance, particularly in the central and western part of the island where very little is now grown. This, in turn, was replaced by sugar, which grew to such importance until after the World War that it has dominated the entire economy of the country even to this day. Only after the sharp rise of nationalistic policies in other countries and the sharp decline in the world market for sugarwas Cuba forced to seek diversification.

The first real step toward diversification was the upward revision of tariffs in 1927 to discourage imports and to protect domestic production. It may now be said that diversification constitutes the central point in Cuban agricultural policy, and the reasons advanced for it are:

(1) To develop production to increase the national income and replace that lost from the decline in exports of sugar;

(2) To provide employment during the long dead season between sugar
harvests and for people formerly employed in the sugar industry but
now unemployed;

(3) To conserve foreign exchange by making it unnecessary to import as
large a proportion of the country's consumption requirements;
(4) To reduce the hazards incident to reliance on one-crop agriculture;
(5) To improve the standard of living by increased production of products
for home use and for the domestic market; and

(6) To increase the production of raw materials for the domestic manufac-
turing industry.

Another more recent and less well-established point in Cuba's agricultural policy is the desire to rehabilitate laborers, unemployed and partially employed, on small tracts of land where they should be able to grow a major portion of their food requirements. Along with the policy of agricultural diversification and rehabilitation there should be mentioned at least two other matters of general national policy that have a bearing on agriculture. These are the announced policy to improve wages and to develop manufacturing enterprises in Cuba. Minimum-wage legislation has been in force for a number of years and covers all kinds of work. This has served to increase consumer income but has also acted to increase the cost of production in some cases.

Government measures taken to implement the policy of agricultural diversification in addition to the higher tariffs since 1927 for the most part are administered through the Ministry of Agriculture or through semigovernmental agencies especially created for that purpose. Most important of the regulatory measures, in addition to the usual type of inspection service on meat, milk, and export vegetables, are the control of prices and in some cases control of production and trade. Price control is a relatively recent measure. Examples are the fixing of minimum prices to producers in order to encourage production, as

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in the case of coffee and cattle. On the other hand, maximum retail prices have been established for beef, rice, and milk in order to protect consumers. In September 1939 a decree established maximum prices for 28 basic foodstuffs; the following week rice was included. Later these were modified to include both wholesale and retail prices of articles of prime necessity. Subsequently, some of the prices proved to be too rigid and inflexible and therefore provision was made to vary prices. In August 1941 a new decree specified the method by which "fair" prices for both the wholesale and the retail trade were to be determined on a cost-plus basis. Wholesalers were to supply current cost-price information periodically and the Ministry of Commerce was to publish a weekly bulletin of fair prices.

The most important instance of control of production is in the case of sugar, where a semigovernmental agency-the Sugar Stabilization Institute determines production quotas for each mill and in turn for individual producers. The control extends to the exports of sugar. Another instance of export control is that of coffee, 30 percent of the production of which may be required to be exported.

In order to stimulate diversification and increase the production of food crops during the war a decree law on February 4, 1942, required all farmers with more than 167 acres of land, and sugar mills growing their own cane, to devote a specified portion of their land to the production of obligatory food crops (except sugar), such as rice, corn, peanuts, and beans. Cattlemen may produce hogs instead of food crops-30 hogs being considered equivalent to 10 acres of food crops. Direct aid in the form of grants and loans has been extended by the Government in a few instances, notably the distribution of free rice seed to small farmers and the granting of loans for the construction of rice mills and a cooperative packing plant in Habana. Other Government measures under consideration involve the construction of numerous irrigation projects and storage warehouses and the purchase of agricultural equipment. Direct Government aid also has been provided for rehabilitating unemployed through the distribution of Government-owned lands. The Government also maintains foresttree nurseries for the production of seedling trees to stimulate reforestation. Cuba has no Government agricultural-credit organization, although there is a great need for credit, particularly to finance harvesting and marketing. Plans for farm credit have been studied repeatedly.

Research, education, and extension are all carried on by experiment stations and the Ministry of Agriculture, although the work is handicapped primarily by lack of adequate funds and in some cases by insecurity of tenure. Large sugar companies also carry on agricultural research, not only in an effort to improve sugar production, but also to find alternative products to supplement the sugar crop.

Agricultural education is given in six secondary agricultural schools, one in each Province, and the College of Agriculture in the University of Habana. Extension work is carried on both directly from the Ministry through agricultural publications, reports, radio releases, demonstrations, and fairs and through the 126 municipal agricultural inspectors, one of whom is located in each municipality. These inspectors are generally comparable to the county agents in the United States, but in Cuba their work consists primarily of reporting on crop conditions and prices. They have limited training, receive relatively

low salaries, and are handicapped by lack of operating funds, equipment, assistance, and transportation.

FUTURE AGRICULTURAL DEVELOPMENT

The foregoing estimates of the degree of agricultural self-sufficiency are based on present consumption, but this obviously varies widely according to the degree of prosperity. In the past, the volume of imports, even of the basic food items, has varied with the volume of Cuba's exports. Furthermore, the purchasing power of a large part of the Cuban population is so low that any improvement is reflected in increased food consumption. Consumption of many agricultural products could be materially increased in the interests of better nutrition and health. This is true not only of the staple items, rice, corn, beans, lard, and meat, but especially of such items as dairy products, eggs, and fresh vegetables. Cuba's consumption of milk, butter, cheese, and leafy vegetables is very low when compared with that in many other countries. Increased agricultural production, therefore, need not necessarily be reflected in increased exports or decreased imports.

The production of dairy products and vegetables for domestic consumption could easily be expanded if there were an increased demand on the domestic market. To develop increased consumption would require increased consumer purchasing power, improved marketing facilities, such as transportation and refrigeration, in addition to consumer education as to the desirability of greater use of these products. Only a part of the total number of cows in Cuba are now being used for dairy production. Beef production could also be expanded through improvement in breeds and the control of ticks and possibly through supplemental feeding. The latter is purely an economic consideration, since the usual low price of beef does not justify the feeding of expensive grain.

Production of the principal food crops-rice, corn, beans, onions, and garlic could also be increased. In the case of rice increased production will depend primarily on the construction of irrigation works (see fig. 43), and it is doubtful whether Cuba will ever be able to produce more than a part of its total rice requirements. As for other products, however, production -could easily be increased with the incentive of improved marketing and storage facilities.

Production of vegetable oil from peanuts will probably expand and supply an increasing proportion of the domestic requirements, but Cuba will probably never be able to replace all import requirements because the country is not adapted for production of certain kinds of fats and oils. It may be possible to supplement peanut-oil production with plantings of the African oil palm if experiments now being made in Cuba continue to prove satisfactory. For nonedible oils the production of castor beans could probably be increased to supply fully the domestic requirements of that oil and possibly some exports as well. Experimental plantings of tung trees indicate that it may be possible to produce tung oil on an export basis.

The development of additional crops for export in most cases requires further experimentation to determine the most suitable varieties, methods of production, and market requirements and prices.58 Bananas

59 According to the findings of the agricultural commission that in 1941 studied the possibilities of develop Ing new export products in Cuba.

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