A debt of over 150 million pesos to private producers has virtually halted milk production in Sancti Spíritus, one of the country's main supplying provinces.
The situation directly impacts the milk supply intended for vulnerable groups such as children, pregnant women, and individuals on medical diets.
The report was published by the official newspaper Trabajadores, which describes a chain of unpaid debts that began in the last quarter of 2024, affecting producers, industries, and state entities related to the dairy sector, creating a "domino effect" that ultimately led to the interruption of the product supply.
Alberto Cañizares Rodríguez, director of the Río Zaza Dairy Products Company, explained that they managed to recover some accounts receivable after disputes with debtor companies, which allowed them to pay for the months of October and November.
However, at the time the information was released, December had still not been paid, as the bank loan received cannot be used for debts from the previous year, the cited newspaper emphasized.
According to Cañizares, entities such as the Business Group of Commerce of Sancti Spíritus and the dairy complexes of Havana and Artemisa still owe Río Zaza nearly 200 million pesos.
Meanwhile, the industry remains mired in a critical financial situation, also affected by collection failures, power outages, and high distribution costs, reported Trabajadores.
In 2024, the company collected 27 million liters of milk, of which seven million were considered excess.
However, instead of being allocated to produce income-generating derivatives, they were assigned to state orders, which led to further losses, emphasized the cited news portal.
"They subsidize the milk up to 39 pesos, putting it in the warehouse costs 45, and the additional collected milk is paid at 70 pesos. We are losing more than 30 pesos per liter," Cañizares admitted.
The situation has also led to the diversion of milk to the informal market, where prices are higher and payments are made in cash.
Producers like Modesto Ibarra Socarrás from the CCS Primero de Enero and Luis Caraballé Fernández from the cooperative Ñico López reported the obstacles they face in collecting what is owed to them.
“The nearest cash box is 30 kilometers away, and many farmers cannot leave their farms or have a phone. Cash is essential,” lamented Caraballé, who is a living example of the bureaucracy and inefficiency that reigns in the country.
Moreover, the effects of drought, cattle theft, and issues with cash access are exacerbating the crisis.
Some farmers, facing the inability to receive timely payments, have chosen to process their own milk or sell it directly.
From the cooperative sector, voices such as Ernesto Cordoví, president of the CCS José Regino Sosa, emphasized that some organizations have taken on the payment with their own funds to avoid halting production.
However, the lack of liquidity continues to be a serious obstacle that jeopardizes the stability of the system, Trabajadores acknowledged.
During the plenary session of the 13th Congress of the ANAP in Sancti Spíritus, the dignity of the peasantry was acknowledged, but there was also a warning that no commitment can be upheld without fair and timely compensation.
"Fulfilling goals cannot rely solely on the farmers' awareness, but on real incentives," said Eidy Díaz, provincial president of the organization.
Since late 2023, the dairy industry in Cuba has shown clear signs of structural collapse. Last November, the then Minister of Food Industry acknowledged that the country did not have enough milk to supply the entire population, and that the goal was to ensure "a portion" for the most vulnerable groups, an unprecedented admission of state limitations in securing a product considered essential.
A month later, the government announced that it would distribute powdered milk only to children aged zero to six, excluding pregnant women and other traditionally supported groups. This measure caused outrage and highlighted the worsening of shortages.
During that same month, the minister himself appeared before the National Assembly to attempt to justify the state's inability to maintain basic supply, arguing financial and logistical problems, without offering sustainable solutions to the deputies.
The crisis was not limited to the shortage of the product itself. In Ciego de Ávila, the lack of powdered milk led to replacing it with a "vitamin-fortified beverage" in children's diets.
This decision was heavily criticized by nutritionists and families, who deemed it inadequate both from a nutritional and symbolic standpoint, as it reflected a departure from a historical commitment of the Cuban state.
In response to the growing discontent and reports of milk being diverted to the informal market, the regime promised in February of last year to "severely" punish those responsible for the violations. However, these threats were not accompanied by structural reforms that would guarantee payments to producers or an incentive scheme to reverse the decline in collection.
Frequently Asked Questions about the Milk Production and Distribution Crisis in Cuba
What is the debt that is paralyzing milk production in Sancti Spíritus?
The debt that paralyzes milk production in Sancti Spíritus exceeds 150 million pesos. This debt affects private producers and has created a "domino effect" that has interrupted the supply of milk to vulnerable groups, such as children and pregnant women.
Why does milk spoil during its storage in Cuba?
The milk deteriorates during storage due to the energy crisis that causes frequent blackouts. The blackouts impact refrigeration and the quality of the product, causing the milk to arrive sour at the factories. This affects the entire production and distribution chain.
How does the debt of the Río Zaza company affect milk production?
The debt of the company Río Zaza directly affects milk production by preventing payments to private producers, which has led to the halt of production. Additionally, other entities such as the Business Group of Commerce of Sancti Spíritus also owe approximately 200 million pesos to Río Zaza.
What measures has the Cuban government taken to address the milk crisis?
The Cuban government has implemented temporary measures such as the distribution of raw milk that must be boiled to avoid health risks. However, it has not provided effective structural solutions to resolve the milk supply crisis in the country.
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