U.S. Grain Exports To Cuba Could Grow Substantially.

US Grains Council News

US exports of the likes of barley and corn to Cuba could grow "dramatically" if plans outlined by President Barack Obama to "normalise" Washington-Havana relations take root, with wheat trade potentially to grow strongly too.

The US Grains Council, which promotes US exports of the likes of barley, corn and sorghum, said that it planned to "re-engage" Cuba early next year, to take advantage of a "new environment to build markets" for American grains.

"Farm leaders now have reason to be optimistic about an increased presence in Cuba," the council said, if acknowledging the strong opposition still present within the US to warmer relations with Havana.

However, the potential gains to agriculture of a free-up in trade are large, with the USGC saying that "coarse grains exports could increase dramatically if United States-Cuba diplomatic relations are fully normalised".

For corn, Cuba, which imports some 900,000 tonnes of the grain a year, could become the 12th largest buyer of US exports if "trade is truly open", said the council adding that it "strongly supports open trade in, and works in, the Cuban market".

In recent years, the US has, despite its proximity to Cuba, captured only about 15% of the island's corn imports, although it does have just about a 100% share of the 150,000 tonnes of distiller's grains (DDGs), a corn-derived feed ingredient, bought in every year.