The Cuban Sugar Ministry said Thursday it would produce 40,000 tonnes more raw sugar than planned, or somewhere between the 1.1 million and 1.2 million tonnes for the season Reuters has estimated. The Sugar Ministry said a week ago it had met its plan with 18 of 39 mills still grinding.
"They will add 40,000 tonnes above the plan," the official National Information Agency said on Thursday, citing Deputy Sugar Minister Lourdes Castellanos Jimenez. Cuba, faced with a cane shortage, planned for a short and efficient harvest. The industry has not met a production plan in some 20 years, let alone in April. When the harvest began, officials said they hoped to match the previous year's 1.1 million tonnes, the lowest in more than a century, though the actual plan was never announced. Cuba consumes an average 700,000 tonnes of sugar annually. However, last year consumption was around 600,000 tonnes due to a reduction in the domestic ration and other measures.
Assuming similar local consumption this year, the industry would be offering at least another 100,000 tonnes on the market after meeting its long-time 400,000 tonne tolling deal with China. Traders said Cuba was selling some shipments for delivery later this year, without providing further details.
Picture perfect weather throughout the season and improved efficiency have led to yields 3 points above what was forecast at mills, apparently compensating for the shortage of cane. The season stretches from December into May, but yields start to decline by mid-April as the hot and humid summer begins.
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