Voluntary Report - public distribution

**Date:** 10/21/2003

**GAIN Report Number:** C13012

C13012

**Caribbean Basin**

**Market Development Reports**

**April Food Price Survey in Cuba**

**2003**

**Approved by:**

![](media/image1.wmf)Margie Bauer, Director

Caribbean Basin

**Prepared by:**

Susan Archer, Economic Officer, The U.S. Interest

Section in Havana

**Report Highlights:**

Prices in a variety of food markets are compared between April 2002 and
January 2003 and show that prices remained, stable in some markets and
increased in others.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Miami \[C11\]

\[C1\]

**I. April 2003 Survey of Havana Markets**

# Summary........................................................................ 3

A.  Items Surveyed ..............................
    ........................... 3

B.  Food availability and prices in April 2003 in comparison to April
    2002 ....................................... 3

    1.  Ration Card -- Libreta
        ............\.............................. 3

    2.  Free Farmer's Market- Agromercados
        .....................................................................
        3-4

    3.  State Markets...................................................
        4-5

    4.  Capped Markets -- Topados......................................
        5-6

    5.  Ejercito Juvenil del Trabajo(EJT) Market..................... 6

    6.  Organoponics.......................................................
        6-7

    7.  Fish
        Shops...........................................................
        7

    8.  Imagenes and Ideal Variety Shops................................
        7

    9.  More information on
        Cuba................................................ 7

**April 2003 Survey of Havana Markets**

A. Summary

In April 2003, U.S. Interest Section in Havana conducted a survey of the
various Havana markets that showed the ration card or "libreta"
experienced no significant supply changes and prices remained the same
since their last survey in January 2003. Prices for basic foods in the
free farmer's markets or \"agromercados\" stayed the same, but prices
for the same products in state and capped markets or "topados" have gone
up since April 2002, indicating that the agromercados may indeed be
responsible for driving prices up at the state and capped markets. The
survey also showed that prices are lowest at Ejercito Juvenil del
Trabajo (EJT) markets, with prices ranging from six to 32 percent lower
than the next least inexpensive markets - the capped markets. The
Imagenes and Ideal chain grocery stores offer basic rice and beans at
higher prices than at the EJT markets, and their prices are comparable
to prices at the agromercados. The Imagenes outlets also offer a variety
of foodstuffs not found elsewhere, such as eggs and various processed
meat products. The approximate exchange rate is US \$1.00 = 26 CP.

B. Items Surveyed

This survey covers essential, special occasion, and second tier food
products. Essential food products are rice, beans, lard, small cooking
plantains, squash or sweet potatoes, onions, garlic and tomato sauce.
Most essential foods are listed on the ration card, although the monthly
allowance is far less that what is needed. Items purchased for special
occasions only are pork, lamb and ham. Second tier items for families
with an above average salary or with access to dollars are: pineapple,
papayas, oranges, limes, yucca, malanga (a tuber), cabbage, carrots,
beets, eggplant, tomatoes, lettuce and cucumbers.

C. Food availability and prices in April 2003 in comparison to April
2002

1\. Ration Card-Libreta

Prices for items on the ration card (libreta) remained the same over the
past 12 months.

The GOC recently announced minor changes in the ration book for the
month of April. Due to maintenance on the soy yogurt production lines,
soy yogurt will be replaced by 1.5 kg of powdered milk mixture.
"Natural" yogurt will be replaced by something called \"shaken\" yogurt;
which comes in plastic bags and has a smoother consistency than the
so-called natural yogurt. The distribution of U.S. chicken leg quarters
continues on a fairly regular basis replacing meat/soy mixtures for 0.70
CP/pound.

2\. Free Farmers\' Markets - Agromercados

The April 2003 survey shows that in comparison with April 2002, the only
basic product with price increases are garlic, tomatoes, and cabbage in
the agromercados. These markets tend to have the widest variety of
fruits and vegetables.

Table 1. Price Changes for Product in the Agromercados

  ---------------- --------------------- --------------------- ------------
  **Products**     **Price, April 02**   **Price, April, 03**  **Change**

  Black Beans                                                  0

  Red Beans                                                    0

  White Beans                                                  0

  Red Onion                                                    0

  White Onion                                                  0

  Yucca                                                        0

  Malanga          4.00 /lb              3.50-4.00 /lb         \-

  Rice                                                         

  Garlic           1.50-2.00 /head       2.00-3.00 /head       \+

  Carrots                                                      0

  Beets                                                        0

  Cabbage          4.00-5.00 /lb         5.00 /lb              \+

  Tomatoes         2.00-7.00 /lb         3.00-10.00 /lb        \+

  Limes            1.00 each             0.50 /each            \-

  Oranges          1.00-2.00 /lb         0.50 /each            \-

  Pork Ribs        23.00 /lb             20.00 /lb             \-

  Pork Loin                                                    0

  Ham                                                          0

  Papaya           4.00-5.00 /lb         3.50-4.00 /lb         \-

  Pineapple        15.00 /lb             10.00-16.00 /lb       \-
  ---------------- --------------------- --------------------- ------------

3\. State Markets

Prices in State Markets increased for some basic products, in spite of
the intended goal to drive down prices in all markets. The prices for
these basic products went up approx. 20 to 50 percent.

Table 2. Price Changes for Products in the States Markets

  ---------------- --------------------- --------------------- ------------
  **Products**     **Price, April 02**   **Price, April, 03**  **Change**

  Black Beans      6.00                  7.00                  \+

  Red Beans        6.00                  9.00                  \+

  White Beans                                                  0

  Onion            4.00                  5.00                  \+

  Rice             4.00                  3.50                  \-

  Malanga \*                                                   

  Yucca                                                        0

  Carrots \*                                                   

  Tomatoes         1.20                  2.00                  \+

  Beets \*                                                     

  Cabbage                                                      0

  Eggplant \*                                                  

  Lettuce \*                                                   

  Sweet Potatoes   1.25                  1.50                  \+

  Squash           1.50                  1.30                  \-

  Oranges \*                                                   

  Limes \*                                                     

  Pineapple \*                                                 

  Papaya \*                                                    

  Lamb Leg and                                                 0
  Loin                                                         

  Lamb Ribs                                                    0

  Pork Ribs                                                    0

  Viking ham       36.00                 35.00                 \-
  (lunch meat                                                  
  style ham)                                                   
  ---------------- --------------------- --------------------- ------------

\* These products were not available in the market.

> 4\. Capped Markets - Topados

Prices fluctuated in comparing prices between April 2002 and 2003.
Prices of these markets are published monthly in the GOC \"Tribuna de La
Habana\" newspaper for the city of

Havana.

Table 3. Price changes for Products in Capped Markets

  ---------------- --------------------- --------------------- ------------
  **Products**     **Price, April 02**   **Price, April, 03**  **Change**

  Black Beans      5.00 /oz              5.50 /oz              \+

  Red Beans        5.50 /oz              6.50 /oz              \+

  White Beans      6.00 /oz              7.00 /oz              \+

  Rice                                                         0

  Onions           8.00 /bunch           2.50 /bunch           \-

  Yucca                                                        0

  Big Cooking      2.40 /bunch           2.50 / bunch          \+
  Plantain                                                     

  Small Cooking    1.00 /bunch           0.60 /bunch           \-
  Plantain                                                     

  Carrots          2.00 /lb              1.00 /lb              \-

  Beets            2.00 /lb              1.00 /lb              \-

  Tomatoes         3.00 /lb              0.80 /lb              \-

  Lettuce          2.00 /lb              1.00 /lb              \-

  Malanga          2.60 /lb              2.50 /lb              \-

  Cabbage          1.50 /lb              1.00 /lb              \-

  Eggplant                                                     0

  Sweet Potatoes   1.00 /lb              0.80 /lb              \-

  Squash           1.00 /lb              0.70 /lb              \-

  Cucumbers                                                    0

  Oranges                                                      0

  Pork Leg and     21.00 /lb             22.00 /lb             \+
  Loin                                                         

  Pork Shoulder                                                0
  Blade                                                        

  Pork Ribs        17.00 /lb             18.00 /lb             \+

  Pork Lard        14.00 /lb             15.00 /lb             \+

  Lamb                                                         0

  Viking Ham                                                   0

  Tomato Sauce,                                                0
  large                                                        

  Green Beans                                                  0

  Okra                                                         0

  Watercress                                                   0

  Bananas                                                      0

  Pineapple        3.00 /lb              2.50 /lb              \-

  Limes            1.00 /lime            0.80 /lime            \-

  Papaya           1.50 /lb              1.40 /lb              \-

  Cucumber                                                     0
  ---------------- --------------------- --------------------- ------------

> 5\. EJT (Ejercito Juvenil del Trabajo) Market

The EJT market in the Vedado neighborhood had the lowest prices of all
markets. Basic products offered were: rice for 3.30 CP, or six percent
lower than in the capped market; black beans for 4.50, -22 percent; red
beans for 5.50, -18 percent; white beans for 5.30, -32 percent; lard for
14, -7 percent; pork for 20, -10 percent; viking ham for 32, -6 percent;
small cooking plantains for 0.55, -9 percent; and garlic for 1 and 1.20,
-67-100 percent compared to prices at the State market (unavailable at
the capped market.)

Some second tier products were also cheaper than in the capped markets:
pineapple for 2.40 CP, -4 percent; cabbage for 0.90, -10 percent;
malanga for 2.30, -8 percent; eggplant for 1.00, -50 percent; and
cucumber for 0.80, -25 percent. Other products such as sweet potato,
lamb, carrot and beet were available at the same price in the capped
markets, and lettuce at 2.00 CP was more expensive than in the capped
markets.

The quality of the products offered at the EJT market is generally good,
and it is always the first purchasing option for any household. These
markets are crowded enough during the week, but lines become unbearable
on the weekends.

> 6\. Organoponics

A survey in an organoponic in Nuevo Vedado found good prices and quality
for a limited selection of fresh green vegetables. Yet the only basic
product available at the time was garlic at 2 CP. Second tier products
included beets (1.50), squash (1.50), cabbage (1.50) and eggplant
(2.00). There were also good quality herbs and vegetables not included
in our basic products such as celery, cilantro, parsley, watercress,
chives, bean sprouts, spinach, radish and dried herbs and spices. This
kind of market can supplement a typical Cuban family\'s demand for fresh
green vegetables, but is not often the first choice.

> 7\. Fish Shops

At two fish shops in the Vedado neighborhood items on offer were
identical: Red snapper for 20 CP/pound, fish croquettes at 0.50 CP each,
and canned tuna (around 200 grams) for 15 pesos. There were queues
outside both shops.

> 8\. Imagenes and Ideal variety shops

Prices are fixed and are the same in all shops in this chain. A survey
of two, one in Vedado and another in Centro Habana found the Vedado shop
had less variety, and very few of the products in our basic market
basket could be purchased here. We found only imported rice for 4.00
CP/pound and black beans for 7.00 CP/pound. Several additional items
were available which cannot be found in the markets mentioned above.
Eggs were available for 2.00 CP each, as were meat croquettes (0.50
each), and sausage \"pate\" (17.00 CP/kg.), used as a spread, or to make
homemade croquettes. In Centro Havana, imported rice was available for
4.00 CP/lb, along with both black and red beans for 7.00 CP/lb. There
was a slightly larger variety of non-basic items including lentils (7.00
CP), bread (6.00 and 12.00 CP, depending on the size of the loaf), eggs
(2.00 CP each), ham croquettes (0.80 ea), as well as ham pate (15.00
/kg); sausage pate (17.00 /kb), pork pate (12.00 /450.00 g), and a mixed
meat pate (14.00 /kg).

Prices for rice and beans at these \"variety stores\" are more expensive
than in the EJT, capped and state Agromercados, and so these stores will
not be the first choice for the lowest-income Cubans. As noted, these
stores offer foodstuffs not available in the above-mentioned markets,
such as eggs, croquettes (meat, ham and chicken) and pates. Bread is a
little bit more expensive than in the new non-rationed Cadenas del Pan,
but the quality is better (Imagenes stores sell soft loaves, while the
Cadenas del Pan sell hard baguettes \-- although according to a Juventud
Rebelde article, the bread sold at the \"Cadenas de Pan\" is made of a
mixture of Canadian and recently-bought U.S. wheat.) The rice was
labeled \"imported,\" and the word on the street was that it came from
the U.S. However, in the Centro Habana shop we could see large sacks of
rice stamped with its provenance: China. Finally, U.S.- bought chicken,
previously available from time to time in these stores for 25 CP/pound,
was not available at the time of this survey. Much of the U.S.-purchased
chicken is allegedly distributed through the ration card.

> 9\. For further information on the opportunities for exporters of U.S.
> food products click on Cuba on our website:
> [WWW.cbato.fas.usda.gov](http://WWW.cbato.fas.usda.gov/).
>
> Caribbean Basin Agricultural Trade Office

909 S.E. 1^st^ Avenue Suite 720

> Miami, FL 33131

Tel: 305-536-5300

####### Fax: 305-536-7577

Email: <cbato@cbato.net>