Cuban export opportunities to benefit US dairy sector

Easing regulatory hurdles that are impeding exports to Cuba could contribute to recovery in the dairy industry, according to the Dairy Farmers of America (DFA).

Speaking in support of the Travel Restriction Reform and Export Enhancement Act (H.R. 4645), John Wilson, senior vice president of marketing and industry affairs for DFA, emphasised that facilitating greater US dairy exports to Cuba could be a step in the right direction toward helping the dairy industry regain ground lost during the 2009 dairy crisis.

"US participation in the global dairy market is essential to putting the US dairy industry on firmer footing going forward," Wilson said. "It is critical that we work to expand opportunities for our dairy exports to allow our dairy producers, as well as their dairy manufacturing partners, to grow and prosper."

"Cuba is a market where we should be a natural preferred seller due to our strong proximity advantages," Wilson said. "Yet it is clear that we are now among the least-preferred of suppliers given these technical and regulatory impediments to US agricultural sales to Cuba."

Meanwhile, the bill also aims to eliminate restrictions on Americans' rights to travel to Cuba. Allowing Americans to travel to Cuba would help stimulate demand for and sales of dairy products in that country.

A June 2009 International Trade Commission Updated Study on US Agricultural Sales to Cuba found that fully eliminating financing and travel restrictions on US exports to Cuba would have boosted 2008 dairy sales to Cuba from US$13 million to between US$39 and US$87 million.