Cuba's Sugar Crisis: A Bitter Turn for Rum Production

Cuba's sugar production is on the brink of a historic low, threatening its rum industry. With only 200,000 metric tons expected in 2025, importation becomes necessary. Declines in sugar-based ethanol production raise concerns for distilleries relying on local ingredients. U.S. sanctions and mismanagement worsen the economic crisis.

Cuba's sugar industry faces a historic downturn, with production set to drop below 200,000 metric tons in 2025 for the first time since the 19th century. This shortfall places the rum industry in a precarious position, as rum manufacturers depend on local sugar.

The dramatic decline is evident in recent figures, with only 350,000 metric tons of sugar produced in 2023 compared to 1.3 million in 2019. This forces Cuba to import sugar to meet basic needs, while rum producers worry about sustaining supplies.

The production of sugar-based 96% ethanol alcohol has plummeted 70% since 2019, compounding issues for distillers. Economic challenges, exacerbated by U.S. sanctions, inefficiencies, and the COVID-19 pandemic, further strain the sector. Provinces across Cuba report failing to meet production targets due to equipment breakdowns and resource shortages.

(With inputs from agencies.)