The Enidio Díaz Machado sugar mill, located in the municipality of Campechuela in Granma, successfully produced 5,000 tons of sugar through a collaboration with a private microenterprise. This model of partnership is one that officials aim to replicate in other mills across the province.
The achievement was revealed by Leonel Estrada, the Communist Party's general secretary at the mill, during a meeting of the organization's Provincial Committee in Bayamo. The gathering focused on the economic and social changes promoted by the Cuban government.
Estrada noted that this collaboration not only enabled the production volume but also enhanced both worker nutrition and the workplace environment. "Community members are pleased" with these developments, Estrada stated, as reported by the official newspaper La Demajagua on Saturday.
Currently, the mill is engaged in producing molasses at the outset of the new sugar harvest. The agreement with non-state sector players includes financial resources, fuel, and supplies to ensure the cane supply.
This success story stands in stark contrast to the broader sugar industry's performance in the region. During the 2024-2025 harvest, Granma managed to produce only 5,277 tons of sugar, falling short of the 19,871 tons that had been planned, achieving merely 27% of its target.
Nationally, sugar production plummeted to below 150,000 metric tons, marking the lowest level in over a century, a far cry from the eight million tons produced in 1989.
The involvement of private enterprises in state-run sugar mills is sanctioned by Decree-Law 114, issued in March in the Official Gazette. This regulation outlines four types of partnerships between state and non-state entities without necessitating the formation of a new legal entity.
This initiative is part of a broader package of 176 economic and social reforms presented by Prime Minister Manuel Marrero to the National Assembly in June, which includes revitalizing the sugar agro-industry through collaborations with non-state actors.
Similar agreements have been tested in other provinces. For instance, the Argeo Martínez mill in Guantánamo partnered with Cuba Ron S.A. to exchange petroleum for cane alcohol.
During the Granma meeting, Yudelkis Ortiz Barceló, the province's first Party secretary, acknowledged that a lack of cane is the main hurdle for the Bartolomé Masó mill and expressed the goal of reactivating all mills in the area.
"Our aim is to get all the mills running," Ortiz declared, describing the process as challenging due to the resources and management it demands. She emphasized that the Party's role is not merely to explain the crisis but to actively work towards overcoming it.
Meanwhile, Governor Yanetsy Terry Gutiérrez criticized businesses that merely lease premises to pay salaries, demanding tangible results that contribute to economic development. She stressed that transformations should lead to greater stability.
Understanding the Impact of Private Partnerships on Cuba's Sugar Industry
What is the significance of the Enidio Díaz Machado mill's sugar production?
The Enidio Díaz Machado mill's production of 5,000 tons of sugar through a partnership with a private enterprise highlights a successful collaboration model that the Cuban government hopes to expand to other mills. This approach is part of broader economic reforms aimed at revitalizing the sugar industry.
How does Decree-Law 114 facilitate private involvement in state-run mills?
Decree-Law 114 allows private enterprises to participate in state-run sugar mills through four partnership models without the need to establish a new legal entity. This legal framework supports the integration of non-state actors in the sugar industry's revival efforts.