Thursday, January 28, 2010

Cuban cigars. Cuban economy. Blog #2



Cuba has the best tobacco in the world due to the soil and the climate of the island. Cuba has been famous for the cigars production in the country since the 1800's. We also know that Cuba exports many cigars to Europe, Canada, and South America. As competition grew with the cigars and the other producing countries, the price also raised. The Cuban cigars right now are going anywhere from $20 to $500 a cigar. The most famous Cuban cigar is the Cohiba cigars which are also the most expensive ones. The best tobacco in Cuba is grown in the Pinar del Rio province. Also we all know that cuban cigars are illegal in the United States due to the embargo. Tobacco in Cuba is grown and processed very carefully and is very well taken care of. The employees that work in the tobacco farms get paid very low money and are exposed everyday to many viruses and bacterias due to the high attraction of bugs and worms that the tobacco plants produce. Also after the tobacco is processed and grown, which takes approximately 3 years, it is taken to the factories of cigars where the tobacco will be rolled. The cigars rollers in Cuba have to go to school and graduate to be able to work in a cigar factory in Cuba. the quality control of the cigar in Cuba is very strict. A cigar roller will roll every day about 80 cigars, and only about 30 will make it to a box of Cuban cigars. The cigar rollers also get paid a very small amount of money. Each farmer and a cigar roller will make approximately about $10 a month and will produce enough for the government to make on cigars about $20,000 in cigars. I know it sound ridiculous but these are facts. Since the competition raised with the cigars since the 1970's the cigars price also did and Cuban cigars became very expensive. The Cohiba Behike which is Cuba's most expensive cigar is valued at $500 a stick and it comes in a special made humidor box that holds 40 cigars and it costs $20,000. This box has to be ordered directly from Cuba and paid for before it is made. Since Cuban cigars became so expensive, it was far from many cigar lovers budget, and that's when the black market with Cuban cigars started. Up to date, all the countries that import Cuban cigars also have the very well known counterfeit ones too, which affects Cuba's economy in a big way. Since these fake Cuban cigars are made locally, usually in Dominican Republic, Mexico, and Miami, they are very cheap and much easier to sell to customers. Most of the time a person who does not have very much experience smoking cigars will get fooled by these counterfeits since they will be offered at a much lower price than they are marketed. Penalties are applied for selling counterfeits Cuban cigars but they are made identical to the ones sold in Cuba, the only difference is the taste of the cigars and that will only be known if the customer smoking it has experience or knows a true Cuban cigar. Since these counterfeit Cuban cigars started being sold, that has caused Cuba to go from making $400-500 million a year to &150-250 million a year, which is a drastic change of 50% less cigars being exported. Fortunately, Cuba has been able to maintain a balance due to the tourists that visit Cuba each year. Minimum wage is paid to the employees in Cuba which has also stopped the people in the country the pursuit of cigar rolling careers and tobacco farms. In the past three years the production of fake Cuban cigars has raised to about 25% more than the last 15 years. Cuba has not lowered the prices of their cigars but Cuban cigars still remain the top sellers in the world.
Some of this information i researched it at Google and got from such websites as http://www.cuban-cigars.ws/cuban_cigars/cuban_cigars.html, and http://www.cubancigarshistory.com/, but most of this information i know it and read it in newspapers, and magazines.
This is Cuba's gdp per capita
Cuba - GDP - per capita (PPP) (US$)

6 comments:

jwelvy said...

I knew that one of Cuba's main exports were cigars, but I never knew that it was this important to there economy. The conditions and wages that Cuban workers work at are atrocious.

Joseph Welvaert

MB said...

It is unfortunate that Cuban cigars have been ban in the US. Back in the 30's Ybor City had may Cuban cigar making factors which brought in revenue for both Cuba and the US. I think that the US government should try to renegotiate turns with Cuba and legalize Cuban cigars in the states.

Also, The workers may not have a high salary however due to the government being communist, other benefits are given to the workers, such as health care and education.

Lazaro Victores said...

that is true. Health and education i sgiven for free to anybody in Cuba, but it really does not matter because the health care in Cuba is very poor due to the lack of tools and technology and it really does not matter what you study because you are not even going to earn a decent amount money, so there is no point on going to school in Cuba. Also, health care and free education does not pay your bills or puts food in your stomach. Sutiation in Cuba is very rough for the people that live there and they are all starving because the government keeps all the money. Nobody cares about health care or education because that does not help them in any way. You are better off taking care of a bruise by yourself than you are going to the hospital. Think about that and tell me if you rather pay for hospitals and school but the live the life you want to live, or have free education and free "health care" and stay living the miserable and super poor life.

AJ said...

I definitley think the working conditions for the workers on tobacco farms are not suitable, but many people in cuba are unemployed so I would imagine even being exposed to viruses and/or bacteria as you say are better than not having a job or being able to provide.

Also I think Cuba controls the cigar market because of how long they've been around and how high the quality of their cigars are. Anyone serious about cigars is going to get a Cuban over a mroe generic brand.

LFernandez said...

I also believe that lifting the ban on certain products form Cuba like cigars could contribute to our economy (in particular in Tampa). But as far as health care in Cuba, It was my understanding the Cuba had the best medical schools, and therefore the best doctors...Is that still true?
I do know that now with all the restrictions and bans from other countries there may be some shortage in tools and technology but isn't that only in the smaller hospitals outside of the big cities?

Lazaro Victores said...

It is true that Cuba has the best medical schools. They still do. But the hospitals have no technology and they have almost no tools to work with. You can be a great doctor and have gone to best school but if you got nothing to work with its like if it was all worthless. That's why you see so many Cuban doctors that go out of the country on missions because they are so good that in the Cuban hospitals their knowledge is not any good because there is nothing there. Cuba is like a country with nothing in it but people. Its sad.

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