A UBPC ('Unidad Básica de Producción Cooperativa'), or Basic Unit of Cooperative Production, is a type of agricultural cooperative that exists in Cuba.

History of the UBPCs Edit

The law authorizing the creation of UBPCs was passed on 20 September 1993. The law transformed many state farms into UBPCs. The law also granted indefinite usufruct to the workers of the UBPC.

The law was passed to link the workers to the land, establish material incentives for increased production by tying workers' earnings to the overall production of the UBPC, and increase managerial autonomy and participation in the management of the workplace.

The Cuban government hoped that these structural changes in the agricultural sector, coupled with other economic reforms, would alleviate the hardships experienced during the Special Period which followed the collapse of the Eastern Bloc and the COMECON.

Performance of the UBPCs Edit

The profitability of a UBPC is influenced by the type of crop it grows, with those growing milk or sugar, for example, being less profitable than those growing livestock or citrus. Profitability is measured by the return on the investment measured in Cuban pesos. An UBPC that receives one peso of profit per 50 centavos invested is more profitable than one that receives one peso profit per 80 centavos invested.

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