The Cuban Citrus Industry

Approximately 90% of Cuba’s citrus output is produced by thirteen SOEs (National Agricultural Cooperatives). These SOEs are under the control of the Junta Central de Planificacion. Joint venture agreements have aided in stemming the almost 40% decline in citrus production that took place between 1989 and 1993.For example, the British company Sims & Co. has created a joint venture with Cuba by supplying Cuban fruit to two major British supermarket chains. Cuba’s citrus company, the National Fruit Corporation, also maintains a joint venture with the Greek company, Lomar Shipping, under the name Lola Fruit, S.A., by exporting its citrus to Europe.
Cuba’s citrus industry has also employed the management contract models prevalent in its tourism industry. For example, the Israeli Company, Grupo BM, manages a lime plantation of 115,000 acres in the Matanzas province. The citrus fruit industry has also benefited from foreign capital for its product export.