New alliance between Cuba and Slovakia aims to revitalize cocoa production in Baracoa

The mixed company Baracocoa S.A. is the regime's promise to rescue a sector paralyzed by the State, while sidelining local producers and small and medium-sized enterprises.

Cocoa producer in BaracoaPhoto © Granma / Jorge Luis Merencio

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The Cuban government is attempting to revitalize the struggling chocolate production by establishing a joint venture with Slovakia.

Baracocoa S.A., the result of the alliance between the Cuban company Alimentos y Bebidas S.A. (Alimcor) and the Slovak company Proxenta a.s., has been promoted by the regime as the solution to the prolonged cocoa crisis in Cuba.

The official constitution ceremony took place at the Hotel Nacional, with the presence of officials from the Ministry of Food Industry, Foreign Trade and Foreign Investment, as well as the ambassador of Slovakia.

According to reports from Granma, the company will be based in Baracoa and will focus on processing, producing, and marketing chocolates and cacao-derived products, including mixes, pre-mixes, pastes, fats, and confectionery.

It is expected to use about 7,000 tons of cocoa to supply both domestic demand and the international market.

Technological upgrades will be implemented, including renewable energy sources, new furniture, and refrigerated transport to ensure the distribution of products.

The First Deputy Minister of Food Industry, Javier Francisco Aguiar Rodríguez, emphasized that Baracocoa S.A. will serve as a bridge between cultures and knowledge, and that it will contribute to the development of primary cacao production in Baracoa, as well as the creation of value-added jobs.

For his part, Pavol Kozik, general director of Proxenta, stated that the company will strengthen local plantations and support the sustainable growth of producers.

However, behind the official discourse of cooperation and progress, the reality is that the government is determined to push the private sector out of the cocoa business.

During the years of paralysis at the state-owned Derivados del Cacao factory, which took several years to build and whose launch was delayed, farmers and small and medium-sized enterprises took on the task of processing and marketing cocoa, offering fairer prices and preventing massive losses of raw materials accumulated in state warehouses.

This private sector, which demonstrated efficiency and responsiveness, has recently been disauthorized by the State, affecting more than six small and medium-sized enterprises and over 100 independent workers, leaving them uncertain about their future.

The measure reflects the government's intention to recentralize a business that generates foreign currency, displacing the private sector that had filled the gap left by state inefficiency.

The cocoa crisis in Baracoa is severe. Production has fallen from 1,100 tons in 2022 to 380 tons in 2024, with projections of only 150 tons for this year.

Poor state management, delays in factory modernization, natural phenomena, and emigration have contributed to this decline, while local small and medium-sized enterprises have shown that it is possible to maintain production.

In this context, the arrival of Proxenta not only signifies foreign investment and advanced technology, but also presents a potential contrast to the state administration, whose ineptitude has left a strategic sector in decline.

The Slovak company, which already has other projects in Cuba, sees the country as a captive market with high demand and limited production capacity, and asserts that its products will be sold entirely within the Island.

Baracocoa S.A. was created as a measure by the Cuban government to regain control of the chocolate market, displacing private actors who demonstrated efficiency and innovation.

The question that remains to be answered is how much this new company will really be able to boost local production and the economy, given that the confidence of independent producers remains low after years of unfulfilled promises, unpaid debts, and unfavorable prices.

The project, in addition to its economic impact, has a symbolic component: Baracoa, the chocolate heart of Cuba, is once again the stage for the struggle between private efficiency and state control, reflecting the structural dilemmas faced by the Island in key sectors of its economy.

Frequently asked questions about the alliance between Cuba and Slovakia for cacao production in Baracoa

What is Baracocoa S.A. and what is its main objective?

Baracocoa S.A. is a joint venture established between Cuba and Slovakia with the aim of revitalizing cocoa production in Baracoa. The company will process, produce, and market chocolates and cocoa-derived products, including blends, premixes, pastes, fats, and confections, using 7,000 tons of cocoa to supply both the national and international markets.

How will the creation of Baracocoa S.A. affect the private sector in Cuba?

The creation of Baracocoa S.A. reflects the Cuban government's intention to recentralize control over the cocoa business, displacing the private sector that had proven efficient in cocoa production and marketing. This has left more than six small and medium-sized enterprises and over 100 independent workers uncertain about their future.

What technological and economic impact is expected from the alliance between Cuba and Slovakia?

It is expected that the alliance with Proxenta, the Slovak company, will bring foreign investment and advanced technology to cocoa production in Baracoa. Technological upgrades will be implemented, including renewable energy sources and refrigerated transportation for product distribution, which could contrast with the current state management and enhance local productivity.

What is the current situation of cacao production in Baracoa?

The production of cocoa in Baracoa has experienced a significant decline, dropping from 1,100 tons in 2022 to just 380 tons in 2024, with projections of only 150 tons for 2025. Factors such as poor state management, delays in the modernization of factories, and natural phenomena have contributed to this downturn.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.