In the first half of 2024, U.S. chicken exports to Cuba have seen a significant decline, according to data from the U.S. Department of Agriculture. A total of 127,000 tons of chicken were shipped to the island, representing a decrease compared to the same period in 2023, detailed a report from the agency.
Although the total volume has dropped, the value of the exports increased by 7%, indicating a rise in prices, explained the renowned Cuban economist Pedro Monreal. The analyst highlights that chicken exports to Cuba in the first half of 2024 are equivalent to approximately 5,000 containers.
While the total value of these exports reached $150.9 million, surpassing the annual import totals for corn or powdered milk in 2022, the decline in volume reflects underlying issues in the market, Monreal noted in a thread on X.
June 2024 Export Trends
In June 2024, chicken exports grew by 15.5% in volume compared to the previous month, with a 6% increase in value, following the usual fluctuating trend of monthly exports. However, the price of chicken in June, at $1.23 per kilogram, was lower than the previous month's price of $1.34 per kilogram.
Monreal clarifies that the figures from the Department of Agriculture include all chicken meat exports to Cuba contracted for commercialization by all types of entities (state-owned, cooperatives, and SMEs). He points out that "the lower level of tons of chicken meat exported to Cuba in the first half of 2024 indicates the problematic nature of the official assumption that fixed profit and price caps in Cuba could stabilize low prices under conditions of reduced supply."
U.S. chicken is a crucial source of animal protein in Cuba, partially offsetting the national agricultural crisis. The drop in imports could exacerbate supply and access issues to essential foods on the island, Monreal notes.
At the end of 2023, there was a dramatic drop in chicken exports, with a 26.5% decrease in value and a 32% decrease in volume compared to the previous month, reaching their lowest level since June 2020. This decline occurred in a context of high prices, with an FOB value of $1.30 per kilogram in October, the highest in five years.
Understanding the Decline in U.S. Chicken Exports to Cuba
This section addresses frequently asked questions about the recent decline in U.S. chicken exports to Cuba, based on the latest data and expert insights.
Why have U.S. chicken exports to Cuba decreased in 2024?
The decline is attributed to underlying market issues and the problematic nature of fixed profit and price caps in Cuba, which have failed to stabilize low prices amid reduced supply.
How has the value of U.S. chicken exports to Cuba changed despite the drop in volume?
Although the volume decreased, the value of exports increased by 7%, indicating a rise in prices per kilogram.
What impact could the decline in chicken imports have on Cuba?
The decline could worsen supply issues and access to essential foods, exacerbating the current national agricultural crisis in Cuba.