Cuba Update: USA Rice Team Travel to Cuba Results in Rice Sales of 130,000 MT

HAVANA, Cuba, August 29, 2005 — Pedro Alvarez Borrego, chairman and CEO of ALIMPORT, the Cuban food import agency, announced at a news conference here Friday, August 26, impending contracts for the purchase of 130,000 metric tons of U.S. rice.

The contracts, to be finalized in the next few days, will be for 100,000 metric tons of paddy rice to be delivered in September with an additional 30,000 metric tons to be delivered in succeeding months. Alvarez, who made the announcement during a news conference here at the Hotel Nacional de Cuba, noted that with the new contracts, Cuba’s U.S. rice purchases for the year will exceed last year’s total of about 175,000 MT.

Cuban trade officials said the USA Rice Federation’s public commitment in support of open travel and trade with Cuba merited the contract awards.

Alvarez emphasized that Treasury Department payment restrictions on Cuba by the Office of Foreign Assets Control (OFAC) continue to have a detrimental effect on the U.S.-Cuba trade.

“The OFAC regulations have penalized American growers and exporters,” he said. In comments Thursday, he explained that the U.S. rice industry is well positioned to supply 500,000 MT of Cuba’s total 750,000-800,000 metric ton rice import market without the disruption of current contracts.

“Cuba is one of the most important markets for the U.S. rice industry,” said USA Rice Federation Chairman Lee Adams, also speaking at the news conference. “We are natural trading partners, and USA Rice remains highly committed to normalized trade relations between the United States and Cuba."

CONTACT: David Coia, (703) 236-1444, dcoia@usarice.com

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Photo cut line: Celebrating the announcement of rice sales to Cuba, USA Rce Federation Chairman Lee Adams, left, and USA Rice President and CEO Stuart Proctor flank ALIMPORT Chairman and CEO Pedro Alvarez Borrega.

USA Rice Federation is the national advocate for all segments of the rice industry, conducting activities to influence government programs, developing and initiating programs to increase worldwide demand for U.S. rice, and providing other services to increase profitability for all industry segments.