U.S. apple delegations extend arms to Cuba and Russia
U.S. apple delegations extend arms to Cuba and Russia
Some U.S. apple professionals engaged in interesting travel abroad in April and May. The New York state Department of Agriculture & Markets in Albany organized a Cuban trade mission that took place April 21-24.
And on May 19-24, a delegation of apple-industry professionals from several states participated in a trade mission to Russia that was organized by the U.S. Apple Export Council.
Jim Allen, president of the New York Apple Association in Fishers, NY, participated in both trips. He said that the result was an increase in hope and enthusiasm for apple trade with both countries.
Approximately 30 participants included in the Cuban mission were vegetable growers, apple shippers, representatives of the logging and forestry industry, grape and wine producers, and professionals from agriculture fertilizer companies.
"The ultimate goal of the trip to Cuba was for New York to represent itself as a viable trading partner," said Mr. Allen.
He participated in a similar mission in 2001 that resulted in optimism, as it was the first opportunity for trade since a U.S. embargo was placed on the island nation in the early 1960s. That trip taught the New York apple industry that Cuba would be opportunistic in business. Due to cheaper prices, Cuba did business only with Virginia and North Carolina. New York apple producers ceased exploring trade possibilities for the next several years.
But the April mission offered New York agriculture new hope. Mr. Allen said that the delegation learned that things have changed in Cuba, although it is still a depressed and poverty-stricken country. What the delegation saw was a change in attitude, but not for the better.
"The perceptions Cubans have regarding trade with the U.S. have changed during the Bush administration," said Mr. Allen. "Gains made during the Carter, Clinton and Regan administrations have diminished since Bush took office. The U.S. continues to demand payment in full before products leave our ports, and funds must be sent through a neutral country. Other countries trading with Cuba do not make these demands. Also, the U.S. views Cuba as a terrorist country. These barriers and others are diminishing our trade ability. U.S. policies are keeping the 13 million people in Cuba depressed -- the embargo is preventing them from climbing out of their trench."
Mr. Allen is not one-sided, however, pointing out that Cuba has done little to improve relationships with the United States over the years. A strong political message was delivered to the delegates by Cuban government officials; the ministry of foreign trade; a leading importer and distributor of food, beverages and raw food materials; the minister of foreign relations; and numerous other officials.
"At one meeting, U.S. delegates from different produce commodity companies met with potential Cuban customers," said Mr. Allen. "The Cubans voiced their need but inability to trade with the U.S. They believe we need to work on normalizing relationships. Small moves would be big steps, such as allowing the importation of Cuban cigars and Bucanero beer into the U.S."
Mr. Allen said that Cubans see New York as a key political player due to its new governor, who they see as potentially providing political clout to help increase business opportunities. They are concerned, however, about being strapped by trade-hindering bureaucracy.
"The friction between the U.S. and Cuba goes back 200 years," said Mr. Allen. "The embargo was just the last straw. Many Americans think when Fidel Castro is gone, things will change in Cuba, but that's not going to happen. Conversely, the country is only 90 miles from the U.S. coast, and if relationships open, it would be a very lucrative market for many U.S. industries."
Chuck Andola, chief operating officer of United Apple Sales in Lyndonville, NY, also participated in the Cuba mission.
"Cubans would love to have normal relations with the U.S.," said Mr. Andola. "Other countries are investing there today. The Canadians invested in the nickel industry, and they built the airport. People now have cell phones, which also required foreign investment. Cuba is 90 miles off the U.S. coast, but we have poor trade relations there."
Mr. Andola said that during the trip, Cubans asked, "How long is the U.S. going to punish us? You deal with Russia, and they put the missiles in Cuba. You deal with Vietnam, and thousands of Americans were killed there. But the U.S. maintains an embargo with Cuba."
"An embargo is punitive," said Mr. Andola. "It hurts both sides. I was impressed and pleased with the professional presentation made by [New York State] Agriculture Commissioner Patrick Hooker, and Bob Hagerty, deputy commissioner. Signs were strong on both the Cuban and New York sides to never give up."
The Russian mission included 16 apple professionals from California, Michigan, Virginia, Pennsylvania and New York. Mr. Allen said that this year, the U.S. Apple Export Council obtained matching emerging market funds that helped to offset the expenses for the trip.
"Russia is now the number one apple importer in the world," said Mr. Allen. "Over 1 million metric tons of apples were shipped into the country last year. Its growing economy gives it strong potential for increased imports in the future."
The states represented in the delegation, which are members of the U.S. Apple Export Council, have shipped nearly 20 containers of apples to Russia this year. Most were produced in New York.
"Transit time is a major advantage," said Mr. Allen. "Apples from the East Coast take 21 or 22 days from port to port. Shipments from Washington take over 40 days."
The U.S. apple delegation met with a number of importers at a highly organized seminar one afternoon for a presentation that offered a full image of the U.S. apple industry.
"We also visited importer, distributor, packer and retailer facilities," said Mr. Allen. "We enjoyed a tour of the port of St. Petersburg, which was a major privilege because the government strictly limits access to it except for port employees."
Mr. Allen said that Russia's projections are to handle volumes of 20-foot containers from the high 800,000- to low 900,000-range in the coming year. Business between the United States and Russia will currently benefit from the weak U.S. dollar. Poland had a huge crop failure last year due to weather, so demand from other areas is high. Apple consumption increases continually in Russia. The United States has excellent-quality apples.
"All of these factors and more make doing business with Russia a lucrative opportunity," said Mr. Allen. "And with the demand for apples growing as strongly as it has over the past couple of years, we expect continued good business there, even when our dollar has regained its strength."
And on May 19-24, a delegation of apple-industry professionals from several states participated in a trade mission to Russia that was organized by the U.S. Apple Export Council.
Jim Allen, president of the New York Apple Association in Fishers, NY, participated in both trips. He said that the result was an increase in hope and enthusiasm for apple trade with both countries.
Approximately 30 participants included in the Cuban mission were vegetable growers, apple shippers, representatives of the logging and forestry industry, grape and wine producers, and professionals from agriculture fertilizer companies.
"The ultimate goal of the trip to Cuba was for New York to represent itself as a viable trading partner," said Mr. Allen.
He participated in a similar mission in 2001 that resulted in optimism, as it was the first opportunity for trade since a U.S. embargo was placed on the island nation in the early 1960s. That trip taught the New York apple industry that Cuba would be opportunistic in business. Due to cheaper prices, Cuba did business only with Virginia and North Carolina. New York apple producers ceased exploring trade possibilities for the next several years.
But the April mission offered New York agriculture new hope. Mr. Allen said that the delegation learned that things have changed in Cuba, although it is still a depressed and poverty-stricken country. What the delegation saw was a change in attitude, but not for the better.
"The perceptions Cubans have regarding trade with the U.S. have changed during the Bush administration," said Mr. Allen. "Gains made during the Carter, Clinton and Regan administrations have diminished since Bush took office. The U.S. continues to demand payment in full before products leave our ports, and funds must be sent through a neutral country. Other countries trading with Cuba do not make these demands. Also, the U.S. views Cuba as a terrorist country. These barriers and others are diminishing our trade ability. U.S. policies are keeping the 13 million people in Cuba depressed -- the embargo is preventing them from climbing out of their trench."
Mr. Allen is not one-sided, however, pointing out that Cuba has done little to improve relationships with the United States over the years. A strong political message was delivered to the delegates by Cuban government officials; the ministry of foreign trade; a leading importer and distributor of food, beverages and raw food materials; the minister of foreign relations; and numerous other officials.
"At one meeting, U.S. delegates from different produce commodity companies met with potential Cuban customers," said Mr. Allen. "The Cubans voiced their need but inability to trade with the U.S. They believe we need to work on normalizing relationships. Small moves would be big steps, such as allowing the importation of Cuban cigars and Bucanero beer into the U.S."
Mr. Allen said that Cubans see New York as a key political player due to its new governor, who they see as potentially providing political clout to help increase business opportunities. They are concerned, however, about being strapped by trade-hindering bureaucracy.
"The friction between the U.S. and Cuba goes back 200 years," said Mr. Allen. "The embargo was just the last straw. Many Americans think when Fidel Castro is gone, things will change in Cuba, but that's not going to happen. Conversely, the country is only 90 miles from the U.S. coast, and if relationships open, it would be a very lucrative market for many U.S. industries."
Chuck Andola, chief operating officer of United Apple Sales in Lyndonville, NY, also participated in the Cuba mission.
"Cubans would love to have normal relations with the U.S.," said Mr. Andola. "Other countries are investing there today. The Canadians invested in the nickel industry, and they built the airport. People now have cell phones, which also required foreign investment. Cuba is 90 miles off the U.S. coast, but we have poor trade relations there."
Mr. Andola said that during the trip, Cubans asked, "How long is the U.S. going to punish us? You deal with Russia, and they put the missiles in Cuba. You deal with Vietnam, and thousands of Americans were killed there. But the U.S. maintains an embargo with Cuba."
"An embargo is punitive," said Mr. Andola. "It hurts both sides. I was impressed and pleased with the professional presentation made by [New York State] Agriculture Commissioner Patrick Hooker, and Bob Hagerty, deputy commissioner. Signs were strong on both the Cuban and New York sides to never give up."
The Russian mission included 16 apple professionals from California, Michigan, Virginia, Pennsylvania and New York. Mr. Allen said that this year, the U.S. Apple Export Council obtained matching emerging market funds that helped to offset the expenses for the trip.
"Russia is now the number one apple importer in the world," said Mr. Allen. "Over 1 million metric tons of apples were shipped into the country last year. Its growing economy gives it strong potential for increased imports in the future."
The states represented in the delegation, which are members of the U.S. Apple Export Council, have shipped nearly 20 containers of apples to Russia this year. Most were produced in New York.
"Transit time is a major advantage," said Mr. Allen. "Apples from the East Coast take 21 or 22 days from port to port. Shipments from Washington take over 40 days."
The U.S. apple delegation met with a number of importers at a highly organized seminar one afternoon for a presentation that offered a full image of the U.S. apple industry.
"We also visited importer, distributor, packer and retailer facilities," said Mr. Allen. "We enjoyed a tour of the port of St. Petersburg, which was a major privilege because the government strictly limits access to it except for port employees."
Mr. Allen said that Russia's projections are to handle volumes of 20-foot containers from the high 800,000- to low 900,000-range in the coming year. Business between the United States and Russia will currently benefit from the weak U.S. dollar. Poland had a huge crop failure last year due to weather, so demand from other areas is high. Apple consumption increases continually in Russia. The United States has excellent-quality apples.
"All of these factors and more make doing business with Russia a lucrative opportunity," said Mr. Allen. "And with the demand for apples growing as strongly as it has over the past couple of years, we expect continued good business there, even when our dollar has regained its strength."
