Already recognised as a producer of some of the world’s best cigars, the next step is towards agricultural diversification
|
||
 |
t
may not be so well known as Cuba, an island not too far away, but the
Dominican Republic produces some of the very best cigars in the world.
In the UK, the Davidoff cigar is one of the most sought-after and prestigious
brands on the market, worth a premium for devotees.
“The
Dominican tobacco leaf is very popular, one of the best in the world,
because it has a penetrating scent and a unique flavour,” says
Fabio Fermin Acosta, executive
director of the Institute
of Tobacco (Instituto del Tabaco de la Republica Dominicana,
or INTABACO).
| Already the biggest-producing state in the world, the government aims to double exports |
|
The
tobacco industry, a crucial source of foreign exchange for the economy,
is an important part of the country’s dominant agricultural sector.
In all, agriculture contributes roughly 18 per cent to gross domestic
product and employs an estimated 40 per cent of the total workforce.
Other major cash crops include sugar, bananas, coffee and cocoa, while
rice, vegetables and citrus fruits are grown for domestic consumption.
The agricultural sector is becoming more commercial in its outlook to
keep up with changing demand patterns across the globe. INTABACO, established
in 1962, works with local tobacco farmers and manufacturers to help
nurture and develop the industry. The Dominican Republic, already the
biggest producing state world-wide, exporting cigars mostly to the US,
has ambitious growth plans. “We are exporting around 250 million
units of cigars,” says Mr Acosta. “We want to double this.
I know we can achieve this with the help of other countries that could
invest here in the Dominican Republic.”
As well as enjoying an ideal climate for tobacco
farming, the country is also looking to modernise local tobacco industries.
There is even a tobacco laboratory to improve productivity levels. The
injection of foreign capital is an equally vital part of this development
process. “We want to plant more tobacco for the world to taste,”
he adds.
| The climate is ideal for growing the plants, and work is ongoing to improve productivity |
|
What
is happening in tobacco can also be seen elsewhere in the agricultural
sector. The government is keen to expand value-added production to commodities
and diversify into new areas. Sonia Guzmán de Hernández,
secretary of state for industry and commerce, believes this is the way
forward for the country’s large farming community. It is also having
a major impact on poverty.
“This is a way to diversify our agro-industry,” she says.
“To leave the traditional products behind and start with other
kinds of products that are more sophisticated, fetch a very high price
on the international market, and that can provide a greater volume of
currency for the greater benefit of our country.”
The Dominican Republic is leading the field with
several organic products, again sold at a premium in UK supermarkets.
The country is also utilising its existing strengths, through its free
trade zones, to encourage agro-industrial manufacturing for export.
“Right now we are the leading exporters of organic bananas to Europe,”
she adds. “The UK is one of the greatest organic banana customers.
It is also a great consumer of dried coconut, organic oils and organic
coffee.”
The story is the same in the US, where produce from the Dominican Republic
accounts for much of the goods for sale on the organic shelves at the
local WalMart. Organic banana, mango and avocado are all in great demand.
It has also moved into new areas to become an important supplier of
various types of green beans to the US market.
“These varieties are being produced and exported with a high added
value and a high return in dollars,” says Ms Hernández.
[email protected]