Aug 29, 2005

In the global economy of the 21st Century, exploring new markets for trade and working to expand those relationships is critical to the continued success of the U.S. While Nebraska has established trade relationships with nearly 180 countries, there was one country located not far off our shore we had yet to explore in terms of export opportunities until recently.

Not long ago I returned from my first trade mission, which had the distinction of being a very short, but also very productive trip. Cuba is a market that had been off-limits until 2000 when the U.S. Congress voted to ease restrictions on the decades-old trade embargo, allowing for the sale of food, agricultural products and medical supplies to the island.

We returned from the trade mission with a commitment from Cuban officials to purchase $17 million in Nebraska agricultural products over the next 18 months. That might not be an overwhelming figure compared to the more than $2.7 billion Nebraska exported in ag-related products and equipment in recent years, but this trip represents something more.

In a time of rising fuel and transportation costs, the agreement opens a new door for our farmers and ranchers in a country located just 90 miles off the coast of Florida. Nebraska has been a leader in the production of dry beans, including Great Northern Beans, so the success of this trade mission will certainly help in strengthening an important industry in our state.

By the time our Havana trip had concluded, members of our delegation had signed the first private sales contracts to fulfill Cuba’s $17 million commitment. Several groups representing Nebraska’s bean producers were part of the delegation and worked together to secure a deal that will bring Great Northern Beans grown primarily in western Nebraska to Cuba for the first time since 1959.

What struck me was that these competitors were able to come together for the benefit of the producers they represent and the good of our state. Yet the Cuban commitment was not limited to the 5,000 metric tons of beans they agreed to buy. Cuba is the largest importer of wheat and wheat products in the Caribbean, with a growing demand for other foods, which were part of our negotiations in Havana. The agreement we signed brings the potential for as much as 25,000 metric tons of Nebraska corn and wheat and 15,000 tons of soybean products to be sold to Cuba in the coming months.

Their interest in Nebraska was so strong that I agreed to return to Cuba in November to help additional producers execute contracts and to continue promoting the quality products raised here in Nebraska, including pork and beef.

I believe the indication that a Governor was not only willing to make the trip to Cuba, but agreed to return made a positive impression on Cuban officials. Upon returning home, I received a call from the Cuban import authority chairman expressing interest in amending the trade agreement and increasing the total value of Nebraska’s potential sale to Cuba to $30 million.

In earlier conversations about this trade mission I expressed my confidence that our delegation would be successful in efforts to help Cuban officials recognize the quality of Nebraska-grown products, and that this trip would provide new opportunities for our producers. I believe we were successful on both counts.

The agreement to additional Nebraska ag products will open up new opportunities for farmers and ranchers around the state, and our work is only just beginning. Our state agriculture officials will be working hard in the coming months to assist producer groups in setting up individual agreements, and I look forward to another successful visit in November to build on the relationship begun on this first trade mission.