Cuban Tobacco Industry Falls 14% Due to Economic Crisis and Anti-Smoking Laws
The article below is from Invertia.com, a Spanish financial website, and was originally published on 21 June 2010. I’ve translated it into English, but if you’d like to read the original Spanish, please click here.
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The world economic crisis and the smoking bans implemented by various countries is effecting Cuba’s famous cigar industry, where the harvests of the country’s best tobacco has fallen 14% according to an official statement.
In the Pinar del Rio province (east), home to the famous cigar tobacco, the harvest yielded 22.4 million leaves which is less than the 26 million from last year, according to the weekly newsletter “El Guerrillero.”
The tobacco leaves are used to roll and fill the most famous Cuban cigar brands, including Cohiba, Montecristo, Trinidad, and Partagás. “The amount of seed planted had been reduced due to limited resources thanks to the economic crisis,” said one rotary.
Habanos cigars dominate the world’s “premium tobacco” market with 70% of its sales. This statistic excludes the United States, where it has been illegal to sell Cuban tobacco products because of the embargo Washington has maintained on Cuba for the last 48 years.
The tobacco industry has showed a decline in the last four years. In 2006 the production solely for exportation was under 217 million pieces; in 2007 it was around 123 million, while last year the number was at 73 million.
Cuba, whose experienced dire problems with liquidity, had reduced the land used to farm tobacco by more than 30% last year. The sales of cigars exported from the island fell to 218 million (177 million Euro) in 2009 compared to 243 million (197 million Euro) from the year before.
In contrast to all this, the domestic demand for Habanos of a lesser quality than premium — which cost pennies to make and utilize tobacco from other parts of Cuba — has not shown signs of slowing down. Around 300 million of these types of cigars were made in 2009 compared 278 million in 2008, according to the Cuban government.
The 200,000 private farmers — including their families — depend on the cultivation and curing of these precious leaves that they sell under government-granted contracts. The industry itself employs thousands of rollers and other specialists that make a living producing the famous “Habanos” for export sales. -

Robaina, the only Cuban grower with a cigar bearing his name, had been in ill health after being diagnosed with cancer last year and had declined in recent days, said friend Sergio Hernandez, a cigar distributor living in Havana.
First, Cubatabaco, Cuba’s national tobacco company, introduced a 
