Cuba's Sugar Industry Faces Historic Decline Amid Economic Challenges

Cuba, once a global leader in sugar production, is witnessing a dramatic decline in its iconic industry. According to provincial media reports, the country is projected to produce only 300,000 metric tons of sugar in 2025—a stark contrast to the millions of tons it produced during its peak years. This decline reflects the broader challenges plaguing Cuba’s agricultural sector.

From Dominance to Decline

For much of the 20th century, sugar was the cornerstone of Cuba's economy. Hundreds of mills churned out raw sugar for domestic use and export, earning the crop its title as "king" of Cuban agriculture. However, years of economic hardship, exacerbated by shortages of fuel, fertilizers, machinery, and labor, have taken a devastating toll.

This year, just 15 state-run mills are slated to operate for sugar production, down from 24 last year. Vice President Salvador Valdés, during a visit to Camagüey province in late November, emphasized the urgent need to revive sugarcane planting. "The first thing is the cane. If there is cane, there will be a harvest, but we have less and less cane," Valdés said. Camagüey, which once produced up to 200,000 metric tons of sugar, is now expected to contribute just 10,000 tons.

Record-Low Production

While the government has yet to officially report last season's sugar output, estimates based on provincial reports and insider sources suggest it reached a record low of 300,000 metric tons of raw sugar. This figure is reminiscent of production levels from the late 1800s, marking a historic low point for the industry.

Ten of Cuba’s 13 sugar-producing provinces have reported production plans similar to last season’s figures, highlighting the stagnation. In Las Tunas, a historically prominent sugar-producing region, the local Communist Party newspaper revealed that sugarcane planting decreased by 48% between December 2020 and June 2024.

Broader Economic Context

The decline of the sugar industry is emblematic of Cuba’s broader economic struggles. The country’s reliance on imports for agricultural inputs has been severely strained by tough U.S. sanctions and the COVID-19 pandemic, which have drastically reduced foreign exchange earnings. Since 2020, food production in Cuba has plummeted by over 40%, with food processing experiencing a similar downturn, according to government figures.

A Bitter Symbol

Cuba’s sugar industry, once a symbol of its economic vitality, now stands as a stark reminder of the challenges facing the island’s Communist-run economy. The government’s struggle to revitalize sugar production underscores the need for systemic changes to address the root causes of the agricultural crisis. Without significant investment and reform, the decline of Cuba's once-dominant sugar industry may continue, leaving its once-mighty mills as relics of a bygone era.