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Little Tich

(6,171 posts)
Mon Feb 15, 2016, 09:19 PM Feb 2016

Alabama company gets U.S. permission to build tractors in Cuba

Source: Yahoo! News / Reuters

HAVANA (Reuters) - The U.S. government has granted an Alabama company permission to build tractors in Cuba, one of the company's co-owners said on Monday, making it potentially the first American manufacturer to open shop in Cuba since the 1959 revolution.

Co-owners Horace Clemmons and Cuban-born Saul Berenthal plan to self-finance a $5 million to $10 million factory at the Cuban port of Mariel just west of Havana to build small tractors for sale to private farmers and builders in Cuba.

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) informed Clemens and Berenthal last week they were cleared to do business under new regulations issued by the administration of President Barack Obama that expand commerce with Cuba.

Clemmons and Berenthal, who call their Paint Rock, Alabama-based company Cleber LLC, are in advanced talks with Cuban authorities and hope to get official permission in March.

Read more: http://news.yahoo.com/alabama-company-gets-u-permission-build-tractors-cuba-192541743--finance.html

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Alabama company gets U.S. permission to build tractors in Cuba (Original Post) Little Tich Feb 2016 OP
AL one of the "No Immigrants in our back yard is setting ups shop in Cuba?" kickysnana Feb 2016 #1
Alabama is currently exporting over 100 million dollars a year Elwood P Dowd Feb 2016 #2
Should be good for Cuba IronLionZion Feb 2016 #3
Their tractors are in such a state of disrepair they've been using oxen. joshcryer Feb 2016 #4
On Small, multi product farms, Oxen are competitive with small tractors happyslug Feb 2016 #6
It will be called the Oggun Tractor. trof Feb 2016 #5

Elwood P Dowd

(11,443 posts)
2. Alabama is currently exporting over 100 million dollars a year
Tue Feb 16, 2016, 02:24 AM
Feb 2016

from various farm crops to Cuba and lobbying for more.

IronLionZion

(45,380 posts)
3. Should be good for Cuba
Tue Feb 16, 2016, 08:18 AM
Feb 2016
http://cleberllc.com/

It would be good for them to have jobs and farming equipment, since the tractors are to be sold in Cuba.

joshcryer

(62,265 posts)
4. Their tractors are in such a state of disrepair they've been using oxen.
Tue Feb 16, 2016, 09:41 AM
Feb 2016

So this is sorely needed for Cuba and an excellent gesture of goodwill by the Obama administration.

 

happyslug

(14,779 posts)
6. On Small, multi product farms, Oxen are competitive with small tractors
Tue Feb 16, 2016, 02:31 PM
Feb 2016
http://www.grit.com/farm-and-garden/farming-with-oxen-zm0z13mazgou.aspx

If the dream is to grow a rotation of corn, soybeans and wheat on 1,000 acres, oxen probably aren’t for you. However, if a mixed crop homestead, small dairy, market garden, maple sugar bush, or grass-based livestock operation of three to 50 acres is more appealing, oxen can compete as a power source.


Making a straight cost comparison between tractors and oxen can be problematic. A new compact tractor can easily set someone back $15,000, and with a basic set of implements, the cost continues to grow from there. Obviously, used tractors are an option on a small farm, but the initial investment in a pair of calves may be as low as $100 to $200.

However, a pair of calves is not really analogous to a tractor; there are many hours of training to complete. For this reason, purchasing a grown team is a favorable option in some parts of the United States. The 4-H Working Steer Program produces many quality teams trained by youngsters, and has for nearly a century. Expect to pay around $1,000 to $2,500 for a well-trained team. (One way to look at it is price of beef plus training.)


This is a consistent report, horse and mules tend to be more productive on farms of less then 50 acres.

With smaller, more affordable equipment and with good teams starting at just a few thousand dollars, he points out that horse farming can be an economical choice for the small farmer.

http://www.grownorthwest.com/2010/08/draft-power-using-horses-oxen-and-mules-on-the-farm/


This has been known for decades, here is an article from 1973:

http://www.motherearthnews.com/homesteading-and-livestock/training-oxen-farming-with-oxen-zmaz73mjzraw.aspx

On small farms, less then 50 acres, Oxen, Horses and Mules are still competitive.

Now, you can attack this on the ground the products from a 50 acre farm can not pay the current price for such a farm, thus you have to go to a larger farm OR find another source of income to pay off the farm. While true (and the main reason Oxen, horses and mules were replaced by tractors, starting in the 1930s, accelerating in the 1950s and all but disappearing by 1970) if you have a farm of less then 50 acres, animal power is the way to go.

This set of tractors, of less then 25 horsepower is design to compete with oxen, horses and mules. In many ways such tractors complement oxen, horses and mules for you have to feed oxen, horses and mules every day, but only fill up the tractor when you need it. Thus if you can use a oxen, horses and mules all the time, but need extras during certain times of the year, a Tractor would be a nice add on. No need to feed for extra oxen, horses and mules when you do need them.

That is the niche I suspect this tractor maker is aiming at. He is hoping to expand into areas of full time use of oxen, horses and mules but that is in the future (and not the distance future, within 10 years).

Side note: Cuba share the same off shore oil that the US has been drilling since about 2000, This oil field, in addition to the fracking fields, are the reason the US oil production has increased since 2000. Thus Cuba has a secure future in oil (not at the present time, but in the near future). Thus oil in the future is NOT a much as problem for Cuba as it will be for the US after 2017 (that is the year most fracking oil fields will clearly be in rapid decline and the US oil boom will have died).

trof

(54,256 posts)
5. It will be called the Oggun Tractor.
Tue Feb 16, 2016, 01:17 PM
Feb 2016

The Oggun tractor plant, named after a god in Cuba's syncretic Santeria religion, will assemble commercially available components into a durable and easy-to-maintain 25-horsepower tractor selling for less than $10,000, Clemmons and Berenthal said. The men believe they can sell hundreds of the tractors a year to Cuban farmers with financing from relatives outside the country and to non-government organizations seeking to help improve Cuban agriculture, which suffers from low productivity due mostly to excessive control of both basic supplies and prices by an inefficient, centrally planned state bureaucracy.
http://www.al.com/business/index.ssf/2016/02/alabama_company_opening_first.html#incart_river_index

Ogún (also spelled Oggun, Ogou or Ogum) is a powerful, fierce warrior who defends his people and fights against injustice. Ogun has the intelligence and creativity to invent tools, weapons, and technology.
http://santeriachurch.org/the-orishas/ogun/

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