The latest Investing Matters Podcast episode with multi-award-winning fund manager and international bestselling author Lee Freeman-Shor has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksIMT.L Share News (IMT)

  • There is currently no data for IMT

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

After unusual weather, Cuba struggles to save prized tobacco crop

Thu, 28th Jan 2016 18:01

By Marc Frank

SAN JUAN Y MARTINEZ, Cuba, Jan 28 (Reuters) - Highly unusualweather has damaged Cuba's tobacco crop, raising concerns amongfarmers and cigar-lovers that the island's supply of its famouscigars might suffer at a time of increased demand resulting fromdetente with the United States.

The weather phenomena El Niño led to Cuba's worst drought ina century in 2015, followed by heavy rain during the northernwinter, which is normally a dry period in Cuba.

While all Cuban crops have suffered, delicate tobacco plantsare especially vulnerable. Rains have wiped out production atsome plantations and severely damaged others. In response,tobacco farmers are replanting now, out of season, in hopes ofsalvaging the 2015-2016 harvest.

In western Pinar del Rio province, where most of Cuba'stobacco is grown, farmers are slogging through rain and mud toreplant destroyed crops. The best Cuban tobacco is cultivatedfrom late October into early January and then harvested intoMarch.

"This has been a disaster, not just for us, but everyone,"Juan Hernandez said as he steered his oxen-pulled plow throughrain and a field of mud where tobacco plants once stood. "We aretrying to see if we can still have a harvest."

Down the road, 60-year-old farmer Andres Chirino pickeddamaged leaves from plants and scowled.

"I have been growing tobacco since I was born and this isthe worst harvest in my experience," he said. "Look at thosestains and rot on the leaves. The quality is bad so we will earnmuch less."

The impact on cigar supply has yet to be determined, astobacco normally requires at least two or three years of curing,fermenting and ageing. Farmers and cigar experts say there havebeen several weak harvests in recent years, inconvenientlyoccurring just as tourism in Cuba is booming.

The cigar monopoly Habanos S.A., a joint venture between theCuban state and Imperial Tobacco Group PLC, has adequatestock to manage a dip in supply, said Carlos Ferran, anexecutive who was surveying western farms. Other Habanosofficials referred questions to holding company Tabacuba, whichdid not respond to a Reuters request for comment.

David Savona, editor of Cigar Aficionado magazine, saidHabanos reported three substandard harvests in a row before thisyear, but so far cigar quality has been maintained.

"Cuban cigars have been doing superbly in our ratings forthe past several years," Savona said. "They've admittedly hadsome weak harvests at a time when people are thinking more andmore about Cuban cigars. That can hurt you down the road."

MORE SOGGY WEATHER AHEAD

In the short-term, meteorologists forecast more soggyweather in February and March.

"The normal is a little rain every once in a while, but ithas been raining day after day with tremendous intensity," saidIvan Rodriguez, spokesman for the famed Alejandro RobainaTobacco Plantation.

An outlier, the Robaina plantation has been largelyunaffected by the weather due to its elevated ground andresistant seeds.

Pedro Jesus Alonso, western regional director of theAgriculture Ministry's export company CATEC, insisted otherscould also save the harvest.

"Everything depends on a little improvement in the weather,"he said. "If it does not rain too much the harvest can get backon track." (Reporting by Marc Frank; Additional reporting by DanielTrotta; Editing by Daniel Trotta and Frances Kerry)

More News
4 Aug 2015 08:40

BROKER RATINGS SUMMARY: Merrill Lynch Restarts IAG With Underperform

Read more
4 Aug 2015 07:29

LONDON BRIEFING: UK Government Starts To Return RBS To Private Hands

Read more
29 Jul 2015 16:04

DIRECTOR DEALINGS SUMMARY: Northcote Energy CEO Buys Shares

Read more
29 Jul 2015 15:24

FTSE 100 movers: GSK and Hikma lead blue chips higher

(ShareCast News) - The FTSE 100 index built an early lead on Wednesday and stayed in positive territory thanks to forecast-busting results from several heavyweights in the pharma, tobacco and banking sectors. London's blue chip index was up 0.57% to 6,592.54 at 1435 BST. Top of the leaderboard mid-

Read more
29 Jul 2015 15:20

DIRECTOR DEALINGS: Imperial Tobacco Executive Sells 7,000 Shares

Read more
22 Jul 2015 08:36

BROKER RATINGS SUMMARY: Citi Adds British Land To European Focus List

Read more
20 Jul 2015 08:22

BROKER RATINGS SUMMARY: Citi Raises HSBC To Buy From Neutral

Read more
16 Jul 2015 18:10

Thursday broker round-up

(ShareCast News) - Aveva Group: Panmure Gordon reiterates buy and 1,420p target. BP: JP Morgan Cazenove reiterates overweight. Centrica: Berenberg Bank reiterates underperform and ups target to 1,060p from 1,000p. Dixons Carphone: Canaccord Genuity ups target to 530p from 500p while reiterating bu

Read more
16 Jul 2015 14:47

FTSE 100 movers: Shire higher on positive broker coverage, Rio Tinto boosted as production improves

(ShareCast News) - London markets inched higher on Thursday, spurred on by reports of progress in Greece and strong performances from oil, engineering and property stocks. As of 1430 BST, the FTSE 100 was trading 0.6% higher at 6,791. Shire got a leg up as Berenberg re-initiated coverage of the sto

Read more
16 Jul 2015 10:10

TOP NEWS SUMMARY: Ofcom Could Put Broadband Network Out Of BT's Reach

Read more
16 Jul 2015 09:42

London open: Sterling and Greenback jump versus euro

(ShareCast News) - Sterling was moving sharply higher versus the European single currency on Thursday morning, alongside the US dollar, as the market acknowledged the relatively greater scope for interest rate rises in both the UK and the US. That came ahead of a speech by Bank of England Governor M

Read more
16 Jul 2015 07:17

LONDON BRIEFING: UK Regulator Puts Breakup Of BT Group On Table

Read more
16 Jul 2015 06:32

LONDON MARKET PRE-OPEN: Stocks Seen Up Ahead Of ECB Policy Statement

Read more
16 Jul 2015 06:01

LONDON MARKET EARLY CALL: Stocks Set To Rise After Greek Approval

Read more
16 Jul 2015 05:17

PRESS: Imperial Tobacco Considering Selling Logista Stake - Bloomberg

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.