Will a cash infusion be good for Habanos/Tabacuba?

[avaldes]

If the change in US policy spurs new investment in Cuba, I wonder what the effect might be on tobacco infrastructure? Massive cash infusion might just bring new supplies and better facilities to the farm and production of the crops. I would love to see something positive come out of improved relations with Cuba. Subsistence farming has been a way of life for quite a long time, will this mean that the guardians of the land get a little payback for all of their contributions to the world of cigars?

When we look back at the fabulous cigars of the 80's, lots of people talk about how the Soviet support helped farmers. I can't help but think that we might be on the verge of some really great things.

-Aaron

[dvickery]

In a word ... No .

Bureaucrats will line their pockets first .

Habanos management will line their pockets next .

Or to put it another way ... In Canada ...when the price of bread goes up ... How much of that increase goes to the wheat farmers ???

Derrek

[garbandz]

Just like "Massive Cash Infusion" in any other third world country,the people who need it most will never see it.

Unless it drives by in the form of a new Mercedes or Cadillac.......

[Ginseng]

In a word ... No .

Bureaucrats will line their pockets first .

Habanos management will line their pockets next .

Or to put it another way ... In Canada ...when the price of bread goes up ... How much of that increase goes to the wheat farmers ???

Derrek

I'm afraid I'm inclined to agree. I just can't see any other path given the parameters of the situation: deprivation, corruption, the challenge of taking personal-scale capitalism to market scale capitalism, dearth of discipline as pressured by time.

Wilkey

[Puros Y Vino]

I agree. Cash wouldn't make it to its' intended targets. Perhaps tools and equipment sent over to replace/augment existing inventory? Or would a bureaucrat flip a few tractors for cash?

[leftimatic]

I have a feeling these talks are only going to benefit a few large corporations frothing at the mouth to get a chance at exploiting another small country.

Trade agreements never ever benefit the backs that truly supply the foundation upon which the trade is built upon.

[Fosgate]

I doubt it would line the pockets in such an obvious tone. You guys forget that Castro and Che used the corruption of govt who took cash for themselves and extravagant lifestyles from foreign companies. That corruption and flamboyance gave the people the motivation to rebel and also seize foreign businesses. No, the people have lived on so little for decades with the fault of their meager life styles laid at fault by the Embargo. They people are going to expect things to change with it coming to pass. The government will first focus on infrastructure and there will be a lot of demand for those improvements. When they quickly realize they cannot deliver fast enough they will be forced to look at better agriculture techniques. However, some things within tobacco production will not change. I am sure they will probably not change the areas where Habanos are selectively grown as they have always embraced they way they are grown and made. If anything I see them not changing for Habanos other than maybe rolling out different price tier of their lower tobacco grades for export and command a premium for their existing Habanos.

[canadianbeaver]

Do you think there will be three levels of cigar collectibility, quality and pricing, based on the resources made available?

Pre embargo. Embargo. Post Embargo.

[Geaux]

It will make it worse -- The money will only increase the ability and will of the oppressors.

Communism never benefits the people or the infrastructure - only the elite oppressors and their agenda of staying elite.

[Smallclub]

Do you think there will be three levels of cigar collectibility, quality and pricing, based on the resources made available?

Pre embargo. Embargo. Post Embargo.

Good question. Actually, even if it doesn't become technically a reality, I'm sure the US cigar merchants will use the "post embargo" qualification; I would do it if I were in their situation!

[tippexx]

I'm wondering if this Thread isn't a little late .... China is already there.

[LGC]

I'm wondering if this Thread isn't a little late .... China is already there.

When money flows through the hands of very few, it is highly unlikely that it will easily reach the people that have little. Those with the money and power will fight to keep the cash flowing through their own hands.

Sent from my iPhone using Tapatalk

[BradNC]

We would have to ask China what they think since we would have to borrow the money from them to infuse anything.

[PapaDisco]

Don't forget: they still have to sort out the whole Trademark thing with Cuban cigars. There's an entire industry of non-Cuban Romeo & Julietta's, HdM's, Partagas, etc. that are manufacturing under those labels an who had their property (trademarks included) seized by Castro.

I'm guessing if the embargo ends, it will end first for generic goods. Branded stuff with non-Cuban makers is going to face a whole lot of customer confusion and legal challenges, at least IMHO!

[Bwtharp]

I don't expect good to come of it and I hear the knockoffs being rolled now!

[avaldes]

The only non-Altadis cigars that use Cuban brand names are owned by General Cigar. I seriously doubt they have any kind of claim to pre-embargo ownership. But other than speculation, what do any of us really know.

I asked this question to see if anyone thought that Habanos would be better off with more operating capital....which could lead to better lives for tobacco farmers and better cigars for us.

We always hear how they have very little fertilizer, which partially contributed to the reduction in ligero thru the years....Just thinking out loud...