The Price of Entrepreneurship: How Cuba’s Crackdown on Coffee Left a Farmer with Nothing
March 22 - 2025
Coffee Geography Magazine
The story of Isidro, a *guajiro*—a term used here to protect his identity—has been making waves in Sancti Spíritus after authorities confiscated 465 small bags of coffee he had been saving to sell. To Isidro, his actions were harmless, even entrepreneurial, but in Cuba, they were deemed illegal.
Isidro, a farmer, had decided to expand his business beyond the coffee plantation he personally cultivates. To fund this venture, he sold his motorcycle and used the money to purchase coffee beans from other local producers. “This was becoming a profitable small business, thanks to the rising price of coffee,” a local resident, who also requested anonymity informed. In the province, unroasted coffee sells for 200 to 240 pesos per bag, while roasted and ground coffee (in 250-gram bags) can fetch between 1,350 and 1,500 pesos. (For context, 350 pesos is roughly equivalent to 1 USD.)
The confiscation left Isidro devastated. “The man was heartbroken. They had to bring him to Sancti Spíritus because he said he wanted to kill himself. He had lost his money, his motorcycle, everything,” the resident added.
The police accused Isidro of “hoarding” and prohibited him from selling the coffee to anyone other than Acopio, the state agency responsible for agricultural procurement. The confiscated coffee was handed over to the Cabaiguán roasting plant.
The incident has left many in the community wary. The anonymous resident explained that he used to buy coffee directly from farmers to resell in the city but has stopped doing so “until the dust settles.” He added, “If the police catch you with even a small backpack of coffee, they’ll take it away.”
This crackdown stems from a new government resolution issued in early September, which tightened controls on the marketing of agricultural, forestry, and tobacco products. The resolution grants the state a monopoly on purchasing from private farmers and sets prices for export-bound products, including coffee. This is despite private farmers significantly outperforming state farms in production. For instance, private farmers produce over 80% of fruit, nearly 80% of beans, and three-quarters of vegetables, root vegetables, and corn, according to official data cited by economist Pedro Monreal.
Monreal has been a vocal critic of the resolution, arguing on social media that it reflects “the arrogant notion that centralized planning is more effective than the market in ensuring ‘economic calculation’ (rational distribution of resources).” He also described it as a form of “forced contracting,” akin to the situation imposed on Isidro.
Despite the harsh raids, coffee remains scarce in Cuba’s bodegas (ration stores). Just a week ago, a local newspaper attributed the shortage and production collapse to a lack of workers to harvest the crop. In an unusual admission, the article acknowledged the sector’s struggles. “In 2023, the situation with coffee was tense, and resources for harvesting and transport were insufficient,” said Felipe Martinez Suarez, director of the Agroforestry Experimental Station in Tercer Frente, Santiago de Cuba. He did, however, highlight that the company had developed “more resistant” coffee trees with assistance from Vietnam.
According to the National Statistics and Information Office, coffee production has plummeted by 51% over the past five years, underscoring the deepening crisis in Cuba’s agricultural sector.