As the USA and Cuba are moving towards normalisation of relations, new opportunities could arise for co-operatives in both countries. Testifying before the US Senate Committee on Agriculture, Mike Beall, the president and chief executive of the National Cooperative Business Association (NCBA CLUSA), pointed out that co-ops played a crucial role in Cuba’s emerging private sector.
The hearing aimed to explore the opportunities and challenges surrounding agriculture trade with Cuba, now that the Congress is analysing the potential benefits of lifting the embargo on trade with Cuba. Mr Beall was invited to take part in the hearing by Senator Pat Roberts, chair of the US Senate Committee on Agriculture, Nutrition and Forestry. In his speech, he encouraged the Senate to see co-ops as the foundation of a market-based economy in Cuba.
“The US should view Cuban co-ops as a fundamental to building a market based economy in Cuba, one that incorporates a proven business model, an economic empowerment for member owners, for consumers.
“Co-ops are functioning successful businesses that provide tangible economic ownership and benefit consumers wherever they are found and NCBA is optimistic that Cuban co-ops will be no exception to this rule,” said Mr Beall. He added that US co-ops were ready to assist and had already begun to establish ties with Cuban co-operatives.
Cuba started to change its co-operative laws in 2011, making a lot of businesses change their ownership structure and become co-ops.
“This is a welcomed departure from other types government state owned enterprises”, he said.
Cuba has over 5,200 agricultural co-ops currently operating that contribute 80% of fruits and vegetables consumed. “This is the foundation for economic stability and growth,” Mike Beall told the Senate.
He thinks the co-operative business model where members own the enterprise is suitable for Cuban people, especially during this period of transition.
The NCBA had concerns about the independence of these co-ops, said Mr Beall, due to the fact that none of them produced financial statements. Therefore, it was difficult to analyse how profitable they were or what is the treatment of state owned equipment that has been delivered to co-ops.
This is where the NCBA would want to see progress. “We want to see proof that co-ops are independent and able to manage these assets and not with interference from government”, he said.
According to Mr Beall, Cuban co-ops face various challenges, whether educational, technical or in terms of accounting, these are issues that can be addressed well by USA co-ops.
“We are ready to provide this”, he said, adding that Cuban co-ops could become valuable to both American and Cuban consumers.
Watch Mike Beall’s speech here http://www.ncba.coop/senate-hearing
Photo: Mike Beall testifying before the US Senate
