Supplying Foodstuffs to Cuba s Tourist Market: The Paladares Carmen Diana Deere & Fred Royce Center for Latin American Studies/IFAS University of Florida March 2017
Main question: How do the paladares supply themselves with foodstuffs? Recipes refer to real ingredients; grocery lists reflect wishful thinking Niuris Higueras, co-owner of Atelier, cited in Saveur (Cooke 2015)
Timeline: Regulations governing the paladares and the sales of agricultural products The paladares Agricultural sales 1993 Cuenta propista (CP) licenses - 12 seats; only family workers 1994 Free agricultural markets (only producers, state & non-state) 2004 No new licenses for paladares 1999 New state agricultural markets (MAE, EJT) 2010/2011 Paladares able to hire employees; seating expanded to 20, later 50; can serve beef & seafood 2011 Cooperatives & state enterprises can contract directly with tourism sector 2013 (for Havana provinces) New wholesale markets authorized New categories CP: wholesale & retail merchants 2013 Individual farmers can contract directly with tourism sector
Our study of paladares & agricultural markets, January 2017 Interviews with owners/chefs of 8 Havana paladares focused on international tourism (Vedado, Miramar, Jaimanitas) Visits to 17 agricultural markets (Old Havana, Cerro, Vedado, Miramar, Jaimanitas) Visits to 3 major supermarkets (Miramar & Playa)
Supply strategies of paladares (n = 8; multiple responses) Full time buyer 7 Employee 4 Owner/chef 2 Contracted - 1 Contract with suppliers 7 Middleman 4 Producers 4 Partnership with producer 1 (cheese, embutidos) Some direct production 2 (make own cheese; fish) International travel 2 (bring specific items)
Use of multiple strategies to assure supplies Case A: Vedado Case B: Vedado Case C: Vedado Full time employee & truck - Goes to multiple Supply & Demand markets, CUC stores - Picks up at 2 farms Contracts deliveries with 2 CCS farmers - Supply fruits & vegetables, viandas, pork, rabbit Partnership with farmer - Cheese & embutido factory Has own boat to supply fish Contract with full time buyer with car (pays 20% value of purchases) - Goes to multiple Supply & Demand markets, CUC stores Contract with middleman for deliveries twice a week (pays 10% value of purchase) - Gives order night before (pineapple, limes, tomatoes, beans) Contracts with 2 private farms for occasional deliveries of organic produce - Cherry tomatoes; honey; fresh spices (did not mention full-time buyer) Contract with middleman for daily deliveries - Gives order nightly (meat, fruits & vegs, staples) Contract with middleman for fish & seafood Contract with organopónico (cooperative) for weekly delivery
Organopónico in Miramar Finca Marta supplies 25 paladares in Havana
Imported items purchased by paladares at CUC stores Fruits & Vegetables Dairy Meat Grains Other Beverages Canned tomatoes, tomato puree, sofrito Canned mushrooms Frozen vegetables (1) Cheese Butter Cream Dried milk Chicken Beef Fish Seafood Pasta Rice Olives, cocktail onions Olive oil & other cooking oils Vinegar Worcester sauce, catsup, mustard Spices Japanese ingredients (1) Wine Liquor Beer Fancy water
Main problems reported by paladares Supply of fruits & vegetables Quality of fruits & vegetables Supply of seafood Quality of pork meat Supply of imported products Difficulty of maintaining fixed menu Difficulty of maintaining stable prices to consumer Erratic availability; seasonal shortages Lack of sufficient diversity High variation; lack of standardization Use of chemicals to induce artificial ripening of fruit Erratic availability; difficulty of contracting Poor sanitary conditions in markets Erratic availability Need to make large purchases when a product available (= shortages) Need to improvise Too much price variation between markets, stores
Aim of study of agricultural markets: Verify these problems
Agricultural markets visited by type of management Management District Locale Abbreviations State Old Havana Sol y Villegas (small) OH State Cerro Plaza Cerro PC State (EJT) Vedado 17 y K V State Vedado 21 y J (small) State Vedado 27 y A State Jaimanitas (small) J Supply & Demand Miramar 42 y 19 M Supply & Demand Miramar 33 y 44A (Grupo Maipe, small) Supply & Demand Old Havana Mercado Belen Supply & Demand Vedado 19 y B Supply & Demand Vedado 17 y G Supply & Demand Jaimanitas (small) Cooperative (UBPC) Miramar 44 e 3 y 5 (Organopónico) Cooperative No- Old Havana Mercado Sol Agropecuaria Cooperative (CCSF) Vedado B e/ 17 y 19 (small) Other street cart Jaimanitas Other Punto de Venta Vedado 19 y B (small)
Availability of fruit in Havana markets, by price range and type of market, Jan. 10-19, 2017 (Cuban pesos) Fruit Least Where Most Where Expensive Expensive Banana 1.2 lb Coop, OH 3 lb Other, V Coconut 0.5 lb State, OH 10 each S&D, V & M Guayaba 5 lb S&D, V 8 lb S&D, V Grapefruit 1.2 lb State, PC 7 lb S&D, V Limes 15 lb Coop & 25 lb S&D, M S&D, V Oranges 1.4 lb State, PC 10 lb S&D, M Papaya 1.55 lb State, V 5 lb S&D, V Pineapple 1.55 lb State, PC 15 each S&D, M & V Watermelon 2 lb State, V 7 lb S&D, V Note: 24 CUP = 1 CUC = US $1.15
Availability of vegetables in Havana markets, by price range and type of market, Jan. 10-19, 2017 (Cuban pesos) Vegetable Least Expensive Where Most Expensive Where Beet 2 lb State, V 15 lb S&D, V (EJT) Cabbage 1.15 lb State, V 15 each S&D, V (EJT) Carrot 3.8 bunch State, PC 12 bunch S&D, V Chard 2 lb State, V 10 bunch S&D, V (EJT) Cilantro 2 bunch S&D, OH 10 bunch S&D, V Cucumber 1.4 lb State, PC 15 lb S&D, V Eggplant 1.8 lb State, J 10 each S&D, M Garlic 16.5 lb Coop, V 4 each S&D, OH Lettuce 1.7 lb State, J/V 10 bunch S&D, M/V Onion 2.5 lb State, PC 15 lb S&D, M/V Parsley 2.5 bunch State, PC 10 bunch S&D, V Pepper 3.1 lb Coop, M 15 lb S&D, V Pumpkin 0.40 lb Coop, OH 15 lb Other, V Radishes 0.80 lb State, J 10 bunch Other, V Spinach 5 bunch S&D, OH 10 bunch S&D, V String 3 bunch State, OH 10 bunch S&D, M beans Tomato 2.1 lb State, V 8 lb S&D, V
Cooperatives often providing products at lowest price when not available in state market Small CCS market in Vedado Non-agricultural cooperative, Old Havana
Issues raised in our study of paladares 1) Is the supply of fruits & vegetables erratic? 2) How much of the supply instability is due to seasonal shortages vs production/transportation problems or other market deficiencies? 3) Is there excessive price variation?
1) Is the supply of fruits & vegetables erratic? Yes: can t count on being able to find everything you need at one market Reason one full-time person often needed to run around the different markets, particularly if a chef who prizes fresh produce
Fruits, vegetables & viandas unavailable in Havana markets, Jan. 10-19, 2017 Not seen at all Scarcely available Where (1-2 stands) Avocado Bananas, small S&D, Vedado, 19 y B Chirimoya Mamey S&D, Miramar, 42 y 19 Cauliflower Mango S&D, Miramar, 42 y 19 Celery Melon S&D, Miramar, 42 y 19 Broccoli Coop, Miramar (Organopónico) Col Chino Ňame State, Vedado, 27 y A Okra S&D, Vedado, 19 y B Plantain (macho) Coop, OH; S&D OH Potatoes State, OH
2) How much of the supply instability due to seasonal shortages vs. production/transportation problems or other market deficiencies? Where seasonal shortages expected: - Mangos, avocados (summer); oranges, grapefruit (fall) What should have been available in January: potatoes, plantain (macho) Production bottlenecks: - Broccoli & cauliflower don t do well in the tropics, but can be successfully grown in organopónicos Transportation: - January always a bad month: gasoline budgets not yet available - Production units often lack sufficient vehicles/spare parts to transport own products Lack of wholesale markets: - Stands at S&D markets largely depend on different, individual middle men who procure in specific areas - Lack of wholesale market limits diversity; partly explains tremendous price variation - Lack of sufficient storage, refrigeration capacity
A Short-lived Experiment with Wholesale Agricultural Markets (December 2013-May 2016) El Trigal
3)Is there excessive price variation? Our study confirms that S&D markets higher priced than state markets While highest prices always in S&D markets, also tends to be better quality produce More price variation within a given S&D market due to size & quality, as well as between S&D markets State has quality control (1, 2 y 3 quality), but price differentiation not as rigorous Some sympathy for complaint of paladares that there can be tremendous differences in price for a given fruit or vegetable Affects profitability if can t easily change final price to consumers If maximizing profits, would have to go to numerous markets
Case of Plaza Cerro New state market that replaced a previous S&D market in August Had the most product variety of any state market A coordinated effort, to assure steady supply at (lower) controlled prices May 2016
Mercado Plaza Cerro
The dilemma For paladares who sell meals in CUCs, fruits & vegetables even at supply & demand markets is relatively cheap in pesos Typical price of basic salad (lettuce, tomato, cucumbers, carrots), $3 CUC Cost of 1 lb. of each ingredient, at mode S&D market = 30 pesos = $1.25 CUC Make at least 4 servings, $0.32 CUC per serving Margin of $2.68 CUC per salad (need to deduct other costs to estimate profitability: labor, taxes & fees, other ingredients) For typical Havana consumer earning average (state) salary of 725 pesos same ingredients can be obtained in state markets At mode in state markets = 9 pesos Price per serving, 2.25 pesos ($0.09 CUC per serving) Could you eat a salad everyday? = 68 pesos Also, cost of transportation + time, to find produce at lowest price in state market
Thank you!