REMINDER: Our user survey closes TODAY, please submit your responses 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
5 Feb 2016 15:07

Friday broker round-up

(ShareCast News) - Enterprise Inns: Barclays downgrades to underweight with a target of 80p. Thomas Cook: HSBC reiterates hold with a target price of 100p and JP Morgan keeps at overweight with a 170p target. Victrex: Deutsche Bank keeps at hold, 2000p target, UBS maintains neutral with a target

Read more
5 Feb 2016 14:28

Imperial Tobacco changes its name to Imperial Brands

(ShareCast News) - Imperial Tobacco has changed its name to Imperial Brands with immediate effect, following approval from shareholders at the annual general meeting earlier this week. The group's ticker on the London Stock Exchange will change to IMB with effect from Monday and its new web address,

Read more
4 Feb 2016 16:30

Earnings, Trading Statements Calendar - Week Ahead

Read more
4 Feb 2016 10:28

WINNERS & LOSERS SUMMARY: Shell Gains As Earnings Meet Expectations

Read more
3 Feb 2016 09:38

BROKER RATINGS SUMMARY: SocGen Cuts Sainsbury To Hold After Argos Deal

Read more
2 Feb 2016 09:36

BROKER RATINGS SUMMARY: Citigroup And Liberum Upgrade Shell To Buy

Read more
2 Feb 2016 08:23

LONDON BRIEFING: BP Disappoints As Weak Oil Prices Take Their Toll

Read more
29 Jan 2016 16:11

London close: Equities close higher as oil prices rise, BoJ loosens policy

(ShareCast News) - The UK equity market closed higher on Friday as oil prices rose and the Bank of Japan's latest policy decision was well received. Oil prices gained on hopes of a deal by major exporters to cut production to address the global supply glut. At 1640 GMT, Brent crude rose 1.4% to $34.

Read more
29 Jan 2016 14:50

FTSE 100 movers: South Africa rate rise sends Old Mutual surging

(ShareCast News) - The FTSE 100 was back over the 6,000 mark on Friday, rising 105.69 points (1.78%) to 6,037.47 by mid-afternoon. Old Mutual topped the list after South Africa's central bank raised interest rates for the second time in two months yesterday. The bank also cut its growth forecast as

Read more
28 Jan 2016 16:04

Dividends Calendar - Week Ahead

Read more
28 Jan 2016 09:37

BROKER RATINGS SUMMARY: UBS Says Buy BAT And Imperial Tobacco

Read more
27 Jan 2016 16:01

AGM, EGM Calendar - Week Ahead

Read more
21 Jan 2016 16:25

Credit Suisse adds Travis Perkins, Whitbread, Imperial Tobacco and Halma to top picks

(ShareCast News) - Analysts at Credit Suisse reshuffled their deck of top outperformers and underperformers on Thursday. In its report, the broker summarised analysts' most and least favoured stocks in each sector, which were usually limited to 20% of each one's coverage universe. The Swiss broker

Read more
18 Jan 2016 10:17

WINNERS & LOSERS SUMMARY: Empyrean Energy Jumps On Sugarloaf Deal

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.