CHEESE

Cuba's cheese consumption is also relatively low, probably amounting to less than 2 pounds per capita as compared with nearly 6 pounds in the United States. As recently as 1927 more than 5 million pounds of cheese were imported, but since 1933 imports have dropped off to an average of only one-third of a million pounds, limited to special types not produced in Cuba. Exports continued to be very small until 1940 when they amounted to nearly one-third of a million. pounds and in 1941 exports rose to nearly 1 million pounds.

Production in 1941 is estimated at about 9 million pounds consisting largely of soft cream cheese, Gouda (Netherland), and Cheddar.

CONDENSED AND EVAPORATED MILK

Canned milk is the most important of all the dairy products made in Cuba from every standpoint-consumption, production, and foreign trade. Many families rely entirely on canned milk, and it is common practice for restaurants to serve canned milk with coffee. This is because of the difficulty of preserving fresh milk in the warm climate; the lack of refrigeration and adequate transportation; and the seasonal nature of milk production, with a peak during the rainy summer pasture season and short production during the winter dry period. Prior to 1930 Cuban imports of these products averaged about 45 million pounds, costing from 4 to 5 million dollars annually. Domestic production began in 1930 under Government tariff protection, and now there are three large plants at Bayamo, Sancti Spíritus, and Habana. The first two are the largest and are located in the cattle-ranch areas. Domestic production was about 40 million pounds in 1939. Exports began on a small scale in 1936 and by 1940 far exceeded imports and in 1941 amounted to over 15 million pounds. There is also a small production of powdered milk.

POULTRY

The Cuban poultry and egg industry is extensive but consists of a large number of small flocks receiving very little special attention or special feed. The climate is well adapted for poultry production, but there are practically no large commercial flocks. According to the 1934 census there were 12.5 million head of poultry, equivalent, to about 3 per capita, which is approximately the same as the number per capita in the United States. There is now very little foreign trade in poultry or eggs, but prior to 1927 Cuba was an excellent market for eggs from the United States. From 1920 to 1927 United States exports to Cuba averaged more than 12 million dozen a year and accounted for 42 percent of total United States egg exports. Then in 1927 Cuba greatly increased the import duty. Higher prices in Cuba resulted, and these encouraged increased domestic production. Since 1931 exports to Cuba of eggs in the shell have not amounted to a thousand dozen a year, except in 1939 and 1940 (5,000 dozen in 1940).

A few flocks consist of imported breeds, but by far the most important is the native Cuban breed Cubalaya, which in 1939 was officially recognized by the American Poultry Association (5) as a standard. breed (fig. 40). This breed has 3 varieties-white, black, and black

breasted red; the birds have drooping tails and are rather small, about the same size as the Leghorn.

The importance of poultry as a source of meat is indicated by the fact that total consumption is estimated at about 40 million pounds

(19) and that it is used in Cuba's national dish, chicken and rice. The sale of eggs is a very important steady source of a small amount of ready cash for farm families. In addition, the game birds play an important role in supplying amusement in rural areas.

HIDES AND SKINS

Until 1941 hides and skins constituted Cuba's most important exports of livestock products and amounted to from 1 to 2 million dollars annually. These consisted almost entirely of wet-salted hides, of which from two-thirds to four-fifths were shipped to Germany until the war started. Substantial quantities of cured hides are imported, principally from the United States.

Almost all cattle hides produced in Cuba are of the wet-salted variety, the supply of dry-cured hides being confined to an occasional few hides obtained as a result of slaughter other than in duly established slaughterhouses. Individual cattle owners also dry-cure some hides for their own use, but these do not enter commercial channels. · Commercial cattle hides are of two types, the Havana Packer, produced by the large packers, and Slaughterhouse, which includes. all others. Only Havana Packer hides enter the export market. They weigh from 65 to 70 pounds, are uniform and free from disfigurations, and come from cattle weighing 900 to 1,100 pounds. These hides are all short shanks but are not trimmed for ears and snouts. Incidence of ticks is limited in this grade. The production of export hides centers around Habana, where it averages 250,000 to 300,000 hides a year. Approximately an equal number are produced outside of Habana, but only about 10 percent of these are exportable. Less than half of the total production is exported.

Table 56 shows the destination of exports of wet-salted hides. This classification includes about 99 percent of the total exports. Prior to 1940 an average of only about 10 percent was shipped to the United States, but in 1940 this share rose to 90 percent, the United States replacing Germany.

TABLE 56.—Hides and skins (wet-salted) exported from Cuba, 1926–40

Com. Exterior, Cuba Min. de Hacienda, Dir. Gen. de Estadís.; 1940 from consular reports.

The average price of export hides during recent years has varied. from 8.7 to 13.9 cents a pound. With the loss of much of the European market and the accumulation of excessive stocks in 1940, prices. of Havana Packer dropped to as low as 4 cents in September 1940, but by the middle of 1941 prices had recovered to 8.6 cents. Commercial production of calfskins is relatively small at about 12,000 skins a year. That of sheepskins, lambskins, and goatskins is esti

mated at about 45,000 a year. Practically all such skins are consumed domestically, and considerable additional quantities of these leathers are imported from the United States for use in Cuba's expanding shoe industry (table 57).

TABLE 57.-Tanned and cured skins imported into Cuba, 1926-40

Foreign trade plays an exceptionally important role in Cuba's economic life. The country's production centers around sugar, tobacco, and a few other crops grown primarily for export, whereas industries supplying domestic consumption are relatively unimportant. The great importance of foreign trade is shown by its high value. The average annual value of all exports during the 5 years 1936-40 was equivalent to $36 per capita, whereas the total export trade of the United States amounted to only about $24 per capita. In the United States the export trade is relatively unimportant compared with domestic consumption, but in Cuba it is of major importance. Cuba's dependence upon foreign trade dates back to days when the island was a Spanish colony. It was to Spain's immediate interest to develop the island only as a source of raw material for sale to Spain or through Spanish merchants. At the same time, the island was kept heavily dependent on imports from Spain, and local industries were not encouraged. Obstacles were placed against economic development and against trade with other countries. Cuba therefore became a great consuming market for imported goods.

When Cuba attained its independence at the turn of the century, the first objective was to open its markets to world trade. Imports and exports each increased in value from about 65 million dollars annually in 1902 to approximately 150 million dollars each in 1912-14. (See fig. 41.) Then the first World War with its greatly increased demand for Cuban sugar created a boom, which continued for several years after the war, when exports reached a peak of nearly 800 million dollars, in large measure because of the high prices for sugar, averaging 11 cents a pound in 1920. Subsequently, countries all over the world increased their domestic production of sugar and imposed higher tariffs and other trade barriers against imported sugar. Nevertheless, the post-war period of prosperity permitted Cuba to maintain a relatively high level of exports until about 1929, after which the depression decline was very rapid. By 1932-33 exports had dropped

in value to only 80 million dollars and imports to less than 50 million. Recovery during recent years has been slow and cut short by the loss of European markets as a result of the present war, but in 1941 exports rose sharply to 212 million dollars.

The balance of foreign trade is normally in Cuba's favor. The value of exports has exceeded the value of imports roughly by 40 million dollars annually during the past 10 years. In other words, imports usually amount to only 65 to 80 percent of the value of exports. This disparity in the value of physical trade is due primarily

FIGURE 41.-Cuban foreign trade, total and with the United States, 1902–41.

to the fact that Cuba is a debtor country and pays interest and amortization on a large part of the investment in Cuban sugar mills and railways. In addition Cuba's foreign trade is handled in foreign vessels, necessitating the payment of large freight and insurance charges to foreign countries.

EXPORTS

Cuba's exports are almost entirely agricultural products (table 58), whereas imports are only about one-fourth agricultural, being primarily manufactured products.