Cuban Entrepreneurs Flourish Amid Food Crisis with Local Solutions

Cuban Entrepreneurs Flourish: On the rural outskirts of Havana, a Cuban family is pioneering an innovative solution to the country’s escalating food crisis. In the face of economic challenges exacerbated by the pandemic, U.S. sanctions, and a sharp decline in tourism—a traditional economic pillar—entrepreneurs like 38-year-old Gabriel Perez are turning to locally sourced alternatives.

Perez recently made a significant life change, selling his home and business to establish Bacoretto, a family-run venture focused on producing gluten-free flour. What sets Bacoretto apart is its reliance on indigenous ingredients such as banana, coconut, and yucca. In a country where most food is imported, such local initiatives take on added significance.

“The crisis is undeniable,” acknowledges Perez. “But in Cuba, it stems in part from a lack of culture around eating the foods that we have at hand.” Cubans traditionally favor rice, pork, and beans—locally available but often requiring machinery and agricultural inputs to grow at scale.

Bacoretto’s operations involve drying and milling yucca, rice, banana, and coconut into organic flour, catering to the dietary needs of gluten-intolerant consumers. The venture has tapped into a market that has only recently seen products tailored to specific dietary requirements. Additionally, byproducts from Bacoretto’s processes are repurposed to create coconut oil, coconut-fiber rope, vinegar, and an array of fermented products and sweets.

Also Read: Cuban Economic Crisis Unveiled: Ministers Expose Deepening Woes

While Bacoretto represents a small and specialized enterprise, its impact is noteworthy. The business, producing 6 to 8 kilograms of flour per week in small batches, primarily serves Havana. However, the challenges faced by Bacoretto are emblematic of the hurdles that many emerging businesses grapple with in Cuba.

Established in the wake of a 2021 decision to lift the ban on private companies—a prohibition in place since shortly after Fidel Castro‘s 1959 revolution—Bacoretto is navigating the complexities of financing in a cash-strapped economy. Perez emphasizes the need for increased technological capacity and better machinery to enhance profitability, reflecting a common struggle among Cuban entrepreneurs.

Despite these challenges, the emergence of thousands of small businesses since 2021 signals a shifting landscape in Cuba. The nation, long dominated by state-controlled initiatives, is witnessing a surge in entrepreneurial endeavors. While financing, infrastructure, supply chain issues, and workforce concerns persist, these ventures, like Bacoretto, are crucial in building resilience and offering localized solutions to broader economic challenges.

In conclusion, Perez states, “To be profitable, technological capacity needs to be increased, and better machinery is needed.” As Cuba’s entrepreneurial spirit unfolds, these ventures stand as beacons of innovation, addressing immediate needs and contributing to the evolution of the country’s economic landscape.

Our Reader’s Queries

Do Cuban entrepreneurs get business training from the US and hope that Biden lifts sanctions?

A group of 300 small- and medium-sized business representatives recently reached out to President Joe Biden with a list of requests. These included easier financial transactions, the creation of a permit for American investors to trade with private companies in Cuba, and the removal of certain restrictions.

Is Cuba’s economy improving?

According to Economy Minister Alejandro Gil, Cuba’s economic growth for this year is less than 2%, which is 8 percentage points lower than pre-pandemic levels. Sectors such as agriculture, mining, and manufacturing are even further behind in terms of production.

Does Cuba have entrepreneurship?

In 2021, Cuba lifted a ban on small and medium-sized enterprises (SMEs), also known as mipymes in Spanish. As per the latest government data published in September, over 9,100 businesses have been approved and registered by the government since then.

Is Cuba a thriving country?

Cuba has been ranked 83rd out of 191 countries in the high human development category on the Human Development Index for 2021. The country’s public debt accounted for 35.3% of its GDP in 2012, while inflation (CDP) stood at 5.5%. Despite these challenges, Cuba’s GDP growth was recorded at 3%.