What do you do when the availability of your main raw material, on which your income depends, plummets and there is nothing you can do to prevent it? How do you avoid losing your skilled workforce, which took years to train? These were the dilemmas faced by the managers and workers of the Derivados business unit (UEB in Spanish) in the municipality of Amancio.

The current crisis in the Cuban sugar industry hit them very hard, as the decline in molasses production deprived them of an essential input for the manufacture of alcohols and, consequently, rum, two products with which they have gained prestige both inside and outside the country. However, without claiming victory yet, they may have found their lifeline in diversifying their production.

IN THE ABSENCE OF RUM...

Lebame is a word that is now frequently mentioned in the corridors of Derivados because the production of this bio stimulant is part of the solution to their headaches. “We are talking about a liquid that accelerates the growth of various crops and sugar cane, as well as improving soil quality,” explains Ernesto Reyes Fuentes, the plant's chief specialist.

Last year, things did not go well with that assortment, admits Enrique Comendador Rodríguez, head of production at the entity. They took note of the mistakes, especially regarding the agility required when applying it to the soil after production to prevent deterioration. In 2025, luck will be different, he assures.

They have an ambitious plan ahead of them, involving 400,000 liters, but the signs are encouraging based on sales contracts with farmers and companies within the municipality and its surrounding areas.

They are also committed to the intensive use of the land they have available for various crops. From practically zero, he explains, they now have about 3 hectares ready, on which they will grow corn and cassava. They are encouraged by what they achieved with the first sweet potato harvests, as they obtained enough to distribute among their workers and sell the surplus at the local trade fair.

“We want to install an irrigation system that will free us from dependence on rainfall, and we must begin preparing other plots for planting rice,” he emphasizes.

At the same time, they intend to expand their vinegar production capacity, whose initial forays look promising, and they even want to add raisin wine to their portfolio of products; both would be very well received in the local market. “It is economically feasible. We established the cost sheet, and the balance is in favor of income,” he asserts.

Comendador Rodríguez also mentions that they are taking steps to start up an ice plant. Once the essential components are installed and safety and security are certified by the regulatory authorities, the first blocks of frozen water could begin to leave their facilities.

“Adjacent to that ice plant, we will have another one for the production of soft drinks; we have already contracted for the carbon dioxide,” he says. If these plans come to fruition, they would add lines of business in which they would currently have no competitors in the "Amancio" market.

AND THE SMELL OF ALCOHOL?

It has not been easy to accept that, for the moment, they are not the main players in the entity's production scheme, confesses Roberto Gerper Rodríguez, head of the alcohol plant. So while they wait for molasses production to resume at the sugar mills in the neighboring province of Camagüey and, perhaps, at the “Colombia” mill in Las Tunas, the experts under his command have been reassigned, some to Lebame production and others to various crops.

“It's a very important technical force that isn't built in a day, so we couldn't lose it,” he emphasizes.
In these unprecedented tasks, income has remained above 20,000 pesos per month. Faced with a scenario of the return to constant alcohol production, Gerper Rodríguez agrees that its most talented specialists would have added knowledge in the field of biofertilizers, and that would already be a significant asset.

However, the characteristic smell of alcohol has not disappeared from these parts, as the rum plant did not completely shut down, emphasizes its owner, Eddy López Guerra. Using their stocks and contributions from the Azcuba group, they have exported 112,171 liters of high-quality rum so far this year.

In addition, other supplies from the Tecnoazúcar company have enabled them to produce more than 3,000 boxes that are ready to be sold in Cuban markets that operate in freely convertible currency. It has not been easy, he says, because, to cite one example, they have had to adjust their work schedules to the periods when electricity is available.

They are also fully involved in diversifying their product range: “We are involved in the production of Lebame and vinegar, from a monthly production of around 400 liters last year to 950 this year. And when we install larger tanks, we could increase this to more than 3,000.”

Income is not the reason for the small fluctuation we have had, says Osmar Monteagudo Hernández, head of the Human Capital team, who agrees that the change has not been without its dangers. “We make decisions as we see the problems. First, we select and train the workforce that will be in other positions, either within the same enclave or in the municipality's production hub.”

The results, even in monetary terms, are evident, he says, as the average monthly salary of workers exceeds 30,000 pesos. That's not counting the additional profits from profit sharing, which are even higher. This directly benefits those who are involved in production, without paying salaries that are not supported by production, he clarifies.

LESSONS TO BE LEARNED

Leaving the comfort zone of alcohol and rum posed significant challenges to other areas of the UEB, such as Sales, Quality Management, and even Legal.

Fernando García Betancourt, who heads the former, knows that he will now have to be more incisive in seeking new customers for those products that today keep the derivatives alive. Yecenia Remedios, from the latter, has been studying different standards than usual to maintain the company's prestige as a supplier of safe and harmless products; and from the legal department, Maura Bentosa Lemes is more alert because opening up the range of customers and suppliers means expanding the number of contracts and legislation to be reviewed carefully.

Before getting too excited, Yolaine Mestre Romero, the economist, makes it clear that the numbers are still in the red until alcohol production resumes, as the general plans were anchored to the income from rum sales by agreement. Hence, she notes, for the moment, diversification is functioning as a mere survival strategy.

It does not sound good that the "Amancio" derivatives completely rule out the possibility of changing the energy source for their boiler, which is currently tied to fuel oil, as suggested by the Cuban President Miguel Díaz-Canel Bermúdez while visiting the area in 2024. A priori, it seems like a pipe dream due to the costs involved, as well as building the boiler that would free them from the physical link with the existing one at the Amancio plant. Changing this situation as a medium- or long-term goal might be possible if it were included in the development objectives, staggering the investments required.

These difficult times for an entity that is the pride of Amancio and Las Tunas teach us to consider whether, in the coming years, it would be wise to completely and solely focus their future on alcohol and rum, which in turn depend on sugar agro-industry that is going through the worst moment in its history.

It seems more intelligent to consolidate these new lines of business, placing them at the forefront of their production options.