When Marino Murillo was appointed president of Tabacuba in November 2021, many Cubans reacted ironically. “Hopefully he doesn’t decide to reorder Tabacuba, or we’ll run out of cigars,” wrote one reader. The joke has come true and the worst omens have been more than fulfilled. The state-owned tobacco company, which then warned that the lack of cigarettes would continue until the first quarter of 2022, announced this Monday that the plan for the first half of the year is not halfway through.
“The production plan of state factories from January to June 2022 is 47% fulfilled”, Explain the official newspaper Granma in a note dedicated to the scarcity of the product and its causes. The delay “is due, mainly, to the lack of direct materials used in the cigarette industry, such as cigarette paper, labels (box) and wrapping paper (cigarette wheel or package), which caused the paralysis of the factories in January, March and May,” said sources from the business group.
Tabacuba owns four state factories in the country: Segundo Quincosa, in Havana; Ramiro Lavandero, in Villa Clara; Juan D’Mata Reyes, in Sancti Spíritus; and Lázaro Peña, in Holguín. The first three have been working normally since the last break in May, although the text already warns that there are guaranteed materials only until September. After that, it will be seen.
“The paper used in its manufacture will arrive in the country in the first half of August and must be processed in the printers before arriving at the factory”
The fourth, in Holguín, has stopped in August and will be that way, at least, the whole month, due to the lack of labels. “The paper used in its manufacture will arrive in the country in the first fortnight of August and must be processed in the printers before arriving at the factory,” added the directors.
In addition to the problems due to the lack of liquidity, the international context has not helped due to the lack of available ships and the delays in maritime traffic. Other causes were the increase in the cost of raw materials and the distance between the supplying countries. But in addition, the lack of energy also has a lot to do with the drop in production, since the factories must stop between 11 and 1 to save electricity.
Faced with such a scenario, Tabacuba has established some measures with which it intends to recover manufacturing levels, although the low level that they have reached complicates the objective. Work shifts, for example, have been increased to two days, some Saturdays have been declared working hours and vacation times have been reduced.
Tabacuba also aspires to find suppliers on the Island that avoid the costs and difficulties of importing, but so far it is nothing more than a wish expressed out loud and it is hard to believe that, if that option exists, it has not been used. before.
Meanwhile, Brascuba Cigarrillos, a joint venture in the Mariel Special Development Zone, is helping to alleviate the situation. The production plan of the company, which manufactures H. Upmann, Popular with filter, Rothmans, Dunhill and Cohiba, meets the objective at 86% and has three work shifts seven days a week, he says Granma.
“Brascuba not only sells directly to chain stores, but also to the Tobacco Marketing Company in Rama La Vega, and this, in turn, to the Wholesale Food Products Marketing Company (EMPA), which is in charge of of its distribution and commercialization to units of the retail network,” say the directors, who specified that Tabacuba must subsidize the cost of production in dollars so that they can be sold in Cuban pesos. An unusual public investment in a product harmful to health.
The problems with the domestic production of cigarettes date back to at least 2020, when there was no money to buy the wrapping paper and other materials.
The problems with the national production of cigarettes date back to at least 2020, when there was no money to buy the wrapping paper and other essential materials for manufacturing. In 2021, machinery breakdowns, the pandemic, and the lack of fuel for transportation just added to the problems.
Given the shortage of the product, cigarettes began to be rationed at the territorial level and consumers had to purchase them upon presentation of the booklet. The objective was, the authorities argued, “to avoid the hoarding and resale of this product”, but not only has the goal not been achieved, but it has unleashed the picaresque for the umpteenth time. With the beginning of the sale in the warehouses, many have not hesitated to use the book of other people or buy it.
Black market sales continue. Cigarettes that are sold rationed cost 10 pesos a box, but on the black market the price exceeds 100 pesos and some, like Rothmans, are even more than 200, a price similar to that of stores in freely convertible currency where, Also, you have to queue.
Meanwhile, and despite the fact that tobacco continues to report important dividends in exports to the country, the drop this year it was 13%. The Government has announced in recent days its intention to launch a luxury tourism project linked to tobacco. This is a high-level hotel that will open in September to promote the Tobacco Route in the Pinar del Río area, which will have, in addition to lodging, an information center, a smoking room and a specialized store.
But at the same time, the provincial newspaper Guerrilla revealed that the harvest is expected, as is customary in almost everything, bad. “There are limitations due to energy, humidity in the raw material, deficit of blankets for packaging and excess of raw tobacco in the warehouses and chosen by the companies, which affects the flow of benefits,” Pedro Rafael said last Thursday. González Lorenzo, coordinator of the production programs.
Of the 5,945 tons planned until July 22, only 5,000 could be collected, due to the lack of diesel and electricity. In addition, there are delays in the construction of the rooms to cure tobacco, which are at 29% of what was scheduled, and also delays in the repairs of those that already exist, which are only at 50%.
________________________
Collaborate with our work:
The team of 14ymedio is committed to doing serious journalism that reflects the reality of deep Cuba. Thank you for joining us on this long road. We invite you to continue supporting us, but this time becoming a member of our journal. Together we can continue transforming journalism in Cuba.
