The Dairy Products Company in Santiago de Cuba is operating significantly below its intended capacity, as acknowledged by its general manager, Eduardo Griñán, in a report by the state-run newspaper Sierra Maestra. The report highlights the challenges facing the dairy industry in this eastern province.
Griñán revealed that almost 90% of the raw materials needed by the industry in the eastern region, primarily powdered milk, are imported. Santiago de Cuba lacks the necessary livestock capacity to replace these imports with local production.
The manager painted a picture of interconnected shortages: without electricity or fuel, collecting milk, maintaining the cold chain, and transporting finished products become impossible. Additionally, the lack of financial resources and technology hinders equipment modernization.
"When these essential supplies are unavailable, production either halts or slows down," Griñán stated, also acknowledging that internal problems within the country exacerbate its vulnerability, beyond the external factors he cited as primary causes.
The workers continue operations using outdated machinery. "More than obsolete, they're essential because they're all we have," the director noted.
The shortage of imported ammonia, a traditional industrial refrigerant, has forced some facilities to switch to freon. This change allows continued operation but at a reduced production capacity.
In response to frequent power outages, the company has been exploring alternative energy sources. A plant in Palma Soriano has already implemented solar power, enabling it to operate independently of the electrical grid. A similar project is underway for the pasteurization plant, the largest factory in the company, although it is not yet complete. Two other facilities rely on generator sets and conventional fuel.
Griñán also mentioned that the company is exploring new revenue streams, such as online sales, foreign currency acquisition, and foreign investment projects, though none of these initiatives have materialized into confirmed contracts or available services.
The stakes go beyond mere production numbers. The company's dairy products are crucial for children, the elderly, hospitals, and schools in the province—a particularly vulnerable population in a city where, as of October, authorities identified over 10% of residents as socially vulnerable.
Griñán's account aligns with a broader national dairy crisis. In June, Minister of Food Industry Alberto López Díaz admitted that over 100,000 children were not receiving their daily milk ration and that the official plan was "impossible to meet."
In July, Brazil delivered 48 tons of donated powdered milk to Cuba via two flights by the Brazilian Air Force, landing at Santiago de Cuba International Airport, primarily intended for children in the eastern provinces. This gesture underlines the severity of the deficit that the local industry can no longer meet.
National milk production plummeted by 37.6% during the 2024-2025 campaign, and Cuba received only 30% of the powdered milk it had planned to import in 2025.
Challenges Facing Santiago de Cuba's Dairy Industry
Why is the Dairy Products Company of Santiago de Cuba operating below capacity?
The company is facing shortages in crucial supplies like electricity, fuel, and raw materials, which hinder its operations and reduce production capacity.
What steps has the company taken to address energy shortages?
The company has turned to alternative energy solutions, such as installing solar power in some facilities, to mitigate the impact of frequent power outages.
How does the dairy crisis affect vulnerable populations in Santiago?
The company's dairy products are vital for children, the elderly, hospitals, and schools, making the shortages particularly concerning for these vulnerable groups.