>© Copyright GRANMA INTERNATIONAL DIGITAL EDITION. La Havana. Cuba >Total or partial reproduction of the articles in this Website is autorized, >as long as the source of the copyright > > >------------------------------------------------------------------------------- >- > >IN THE FOOD INDUSTRY > >A war on stagnation > >• Investment program to install internationally competitive technologies >• Improvement system in 44% of enterprises > >BY RAISA PAGES (Granma International staff writer) > >THE outworn and out-of-date technology which practically brought the Cuban >food industry to a halt during the special period is undergoing a process of >modernization, to remove obsolete infrastructure through the installation of >new internationally competitive product lines. > >The Ministry of the Food Industry (MINAL) employs around 90,000 workers, >spread throughout 122 companies, out of which 44% are applying the business >improvement system, in order to achieve greater efficiency in the organization >of industrial resources and materials. One of the most important aspects of >this system is linking wages to production levels. > >The incentive system applies to 97% of the work force and last year 57% of >workers benefited from it, specifically those who contribute to increased >production levels and cost-cutting measures. > >MINAL is dependent on the supply of domestically grown agricultural products >and imported raw materials. Therefore, its production is linked to the flux of >harvests and the financing available for importing foodstuffs such as powdered >milk or grains, for example. > >This is the background to understanding the abrupt fall in production levels >in the Cuban food industry at the time of the collapse of socialism in the >Eastern European countries, which were the main suppliers of machinery, >technology and raw materials. > >Currently, almost 20 MINAL firms are operating as international economic >associations with capital provided mainly by companies from France, Italy, >Switzerland, Canada, Mexico and Uruguay. > >THE BEST OF THE LAST NINE YEARS > >After the period of economic depression, a recovery has become apparent. The >gross domestic product grew by 58% in 1999 and, broadly speaking, it is the >best figure achieved over the last nine years. > >During 1999, gross earnings from increased exports rose by 17% in comparison >to the previous year, a figure achieved by higher sales of rum, both abroad >and within the country, with a total of 1.23 million boxes of Havana Club. > >In terms of this year, it is estimated that an extra million boxes will be >added to the aforementioned figure, according to Corporación Cuba Ron, the >marketing of which is undertaken by Havana Club International, a joint venture >with the French consortium Pernod Ricard. > >Although exports of Cuba's emblematic drink are progressing well, this has not >been the case for the marketing abroad of non-traditional products, such as >other types of foodstuffs and drinks. > >Records for sales to the tourism sector within Cuba indicate an income of $200 >million USD and the target set for this year is to exceed this figure by >around $90 million USD, an increase expected to be achieved through improved >quality in the sale of pasta, oil, flour and meat and dairy products to hotels >and hard currency retail outlets. > >This growth depends on the progress of the investment program, as vital >competitiveness on the international and domestic market requires rapid >technological transformation. > >Income generated in hard currency from these sources is subsequently >reinvested to improve the quality of the products sold through subsidized >distribution to the local population. > >The conclusion of the first stage of the bread program, aimed at retailing >this product at a cost higher than subsidized prices, was one of the most >important outcomes of the 1999 investment plan. > >There are now 96 bakeries of this type throughout Cuba and the profits made >are reinvested in the improvement of the quality of bread distributed to the >population through subsidized outlets. > >In 1999 MINAL was responsible for investments totaling 38.9 billion pesos, >which made it possible to meet 10 key targets of an immense renovation program >in its industries. > >For the packaging of subsidized milk for children, 10 new production lines >were installed which enabled packaging in plastic bags, replacing the glass >bottles which have been traditionally used in Cuba. > >HIGHER INCOME FOR WORKERS > >Incentives linking wages to the reduction of costs facilitated an 11-cent cut >in costs compared to the previous year, according to Antonio González, >director of the Dairy Complex in Havana, where the business improvement system >has been applied. > >He added that the system contemplates the distribution among employees and >management of 60% of the savings in the cost of materials, and this entails an >average rise in wages of 30% for cost cuts and increased production levels. > >As part of the 1999 program, two sausage factories were remodeled; several >breweries increased and modernized their production capacities; and two new >lines of beer were launched in the Manacas and Tínima factories (located in >central and eastern Cuba). > >Although the total amount of investments has not yet been determined, the >program for this year encompasses around 25 projects aimed at the introduction >of modern technology in the production of edible oil; the processing of >grains, flour, tomato and fruit juices, meat and milk; dairy product >packaging; and the installation of soft drink and beer dispensers, as well as >increased efficiency in the bottling of rum. __________________________________ KOMINFORM P.O. 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