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(Lincoln, NE) Reacting to Nebraska's progress during its third trade mission to Cuba, Cuban officials sent Gov. Dave Heineman a second memorandum of understanding (MOU) worth $30 million in agricultural trade over the next 18 months. Gov. Heineman signed and returned that second MOU, which U.S. Sen. Chuck Hagel signed as a witness.
Cuba expects to fulfill its first $30 million MOU with Nebraska later today and begin work on its second. No other U.S. state has secured an MOU larger than $20 million.
Lt. Gov. Rick Sheehy and members of the Nebraska trade delegation visiting Havana this week have already signed sales contracts for additional Nebraska agricultural products, including turkey and pork. More details about the specific purchases and about other contracts under negotiation in Cuba will be released as they become available.
Lt. Gov. Sheehy said, "This is an important agreement for Nebraska farmers and ranchers. In very real terms, this represents the foundation of a trade relationship Governor Heineman built and that Nebraska and Cuba can continue to build upon."
Lt. Gov. Sheehy, Nebraska Department of Agriculture Director Greg Ibach and members of the 31-person Nebraska trade delegation met several times with Alimport Chairman Pedro Alvarez and his negotiators during the trade mission. Alvarez called the Governor to propose the new memorandum and to share news of the sales already achieved.
Joining the Lieutenant Governor and Ibach on the trip are Nebraska agricultural producers, as well as representatives of Nebraska ag cooperatives and companies, commodity organizations and Department of Agriculture staff members.
"I am pleased for Nebraskans that Chairman Alvarez has kept his word, and that we have kept ours," Gov. Heineman said. "Cuba has proven itself a valuable trading partner, one that has benefited Nebraskans all across our great state, and I know the Cuban people appreciate the fine products that Nebraska's farmers and ranchers are selling."
The U.S. Congress passed exceptions to the U.S. trade embargo with Cuba for food and medical supply sales in 2000. Since then, Cuba has purchased approximately $1.8 billion in U.S. food products. In 2005 alone, Cuba spent $540 million on American-grown food, making Cuba one of the 30 largest export markets for U.S. agriculture.
Ibach said, "Today signals a new plateau in Nebraska's trade relationship with Cuba. Our previous trade visits have helped establish us as a reliable supplier of important Cuban dietary staples, like dry edible beans, and commodity crops like soybeans and wheat. The contracts signed today represent important growth into the value-added arena and diversifies our trade opportunities in this important and emerging market."
Delegates who traveled to Cuba with Lt. Gov. Sheehy and Director Ibach include the following: Greg Anderson and Norman Husa of the Nebraska Soybean Board; Robert Dickey of the Nebraska Corn Board; Mark Spurgin of the Nebraska Beef Council; Bill Thiele of Thiele Dairy; Jason Richter, George Richter, Gary Kohake, Brad Bowman, Jerry Lamb and Jim Sbarro of Farmland Foods, Inc.; Justin Stevens of McGuire Woods Consulting; Terrance O’Neel and Brett Wilke of the Nebraska Pork Producers Association; William Badley and Leo D. Hanson of Wiechman Pig Co., Inc.; Cynthia Allen of Allen Farms Dry Beans; De Maris Johnson, a corn and soybean producer; Herbert Sampson, a soybean producer; Alejandro J. Sune of Cargill Meat Solutions; John Burback of Burback Farms, a pinto bean and beef producer; Deb Vanmatre of Norbest Turkey, Inc; Steve Campbell of Louis Dreyfus Corp., selling grains; Jamie Karl, Deputy Director, Nebraska Department of Agriculture; and Stanley J. Garbacz, Agricultural Trade Representative for the Nebraska Department of Agriculture.
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