Consejo Estatal del Azúcar (CEA)

After the assassination of dictator Rafael Leonidas Trujillo on May 30, 1961, the assets of the Corporación Dominicana de Centrales Azucareras (CDCA), the holding company controlled by the dictator that owned twelve sugar mills and whose interest represented 63% of the total sugar industry, became the property of the Dominican State by virtue of Law No. 6106 of November 14, 1962.  This law created the Corporación Azucarera Dominicana who was responsible for the administration of the twelve sugar mills from the date of its creation in 1962 and 1966. On August 19, 1966, the Dominican Government created the Consejo Estatal del Azúcar (CEA) or the State Sugar Council as an autonomous body whose objective was the coordination and efficient operation of the sugar mills, lands and other interests acquired by the State from the CDCA in 1962. The CEA closed down Ingenios Catarey and Esperanza in 1987 and continued to operate the other ten sugar mills, but through the years its operations eventually created a condition of insolvency.  The financial crisis of the CEA was of such magnitude that by 1998 it had accumulated a capital deficit of approximately US$200 million while its capital accounts totaled only some US$76 million.  Its operations were subsidized by the Dominican Government to the tune of approximately US$88.7 million (RD$700 million) for the 1996-97 grinding season and approximately US$104.3 million (RD$955 million) for the 1998-99 grinding season.

In a re-capitalization effort, in April 1997 the Dominican legislature passed the Public Companies Capitalization Law which provided for the disposition of government properties owned by several companies including the Corporación Dominicana de Empresas Electricas Estatales (CDEEE), the Corporación de Fomento de la Industria Hotelera y Desarrollo del Turismo (CORPHOTELS) and the CEA . By virtue of this law, the CEA then decided to lease the ten sugar mills it had operated since 1966 and their related assets. On December 13, 1999 the CEA entered into a thirty-year lease with Consorcio Azucarero Central for one of the sugar mills and on December 15, 1999 entered into thirty-year lease for five of its sugar mills with Consorcio Azucarero del Caribe S A and two with Central Azucarera del Este. On February 29, 2000 a thirty-year lease agreement was entered with the Consorcio Agroindustrial Cañabrava C x A for the remaining two additional sugar mills.

  • Consorcio Azucarero del Caribe S A - was organized by Mexican enterprise ZUCARMEX to acquire by public tender five of the twelve sugar mills owned by the CEA with total daily milling capacity of 19,777 short tons or approximately 60% capacity of the CEA owned mills and 31% of all sugar mills in the country.  The mills awarded the Consorcio Azucarero del Caribe SA were:​​

    • Ingenio Consuelo - had a milling capacity of 4,600 tons per day.  Its last production year was 2006.  In 2011, it was dismantled and sold in China for scrap.  Its facilities were donated by the CEA to the ONG Fundación Pringamosa who today operates a metallurgical industry where the shop used to be.

    • Ingenio Quisqueya - its last production year was 1995-1996, it never resumed operations after being leased, all that is left is the chimney.

    • Ingenio Boca Chica - operated until 2007, it has since been demolished and all that is left is the chimney and a Baldwin steam locomotive on a plinth inside a children playground.

    • Ingenio Rio Haina - it had ceased to operate by 2007.

    • Ingenio Ozama - operated until 1988, its only remains are the chimney and an administrative block now part of Liceo Calixta Reyes.

  • Consorcio Agroindustrial Cañabrava C por A - was established in 2000 to acquire two mills in the northern part of the country with a milling capacity of 2,721 m. t. daily which represented 9% of the public mills capacity and 4% of capacity at National level.  Its principal shareholder was Venezualan born Julio Hazim, a local doctor, businessman, sports promoter and local professional baseball team owner and TV producer.  Cañabrava had substantial loans with Banco Internacional (Baninter) which failed in 2003.  In 2006, the Central Bank of the Dominican Republic as liquidator of Baninter, assumed all the assets of Consorcio Agroindustrial Cañabrava.​

    • Ingenio Monte Llano - its last year of operation was 2005 in 2012 the sugar mill was leased to US based Consorcio Azucarero & Biocombustible Quisqueya (Cabioqui) who promised to invest RD$40 million and resume operations in a year’s time, but that never happened.  It was acquired back by the CEA in 2015 as the result of a court action against Consorcio Agroindustrial Cañabrava C por A and Consorcio Azucarero & Biocombustible Quisqueya  (Cabioqui).

    • Ingenio Amistad - its last milling season was 1999, never operated while in the ownership of Cañabrava.  Baninter liquidators agreed in 2011 to sell Amistad facilities and machinery as scrap to a private company, move that means the sugar mill will never operate again.

  • Consorcio Azucarero Central (CAC) - the CAC was granted rights to lease and operate one sugar mill.  The CAC was originally 49% local capital and 51% owned by the Consorcio Dominicano Franco Americano comprised of Consorcio Azucarero Central, Sucden, Amerop, Angel Alfonzo Casasnovas Guidecelli, Nivoni Juan Santoni and Nicomar, S. A.  According to their website www.cac.com.do, since 2000 it is owned by a group of Dominican and Guatemalan investors. ​

    • Ingenio Barahona - It is the only sugar mill that has operated uninterruptedly since 1999 when the CEA decided to lease its sugar mills in a recapitalization effort.

  • Central Azucarera del Este C por A - the original Lease Agreement signed 12/1/1999 was between the CEA, Central Azucarera de Este C. por A. and Central Pringamosa C. por A.  Subsequent to Pringamosa winning the initial bid, it organized as its succesor Central Azucarera del Este C. por A. of which it owned 93%.  The principal owner of Pringamosa was Miguel Chinchilla Varona.  The additional owners brought in to form Central Azucarera del Este C. por A. were Nelson Aybar Aponte, Hacienda Luisita C. por A., Nelson Aybar C. por A., Ricardo Aybar Dionisio, Diego Casasnovas C. por A., Pringamosa C. por A., Agropecuaria Linnat S A, Juan Antonio Giraldez Casasnovas and Nicolás Casasnovas.

    • Ingenio Porvenir - In 2010 its grinding capacity was 3,200 tons of sugarcane per day.  In the 2015-2016 milling season, it produced 15,413 m. t. of raw sugar.  Its last milling season under the Central Azucarera del Este was 2006-2007.  In 2010 after cancelling its lease to Central Azucarera del Este, the CEA leased Ingenio Porvenir to Azucarera Porvenir S. R. L., owned by the Spanish firm Azucarera del Gualdafeo.  Beginning in 2012 a lawsuit between the CEA and Azucarera Porvenir is being argued.  In January 2014, the CEA began managing Porvenir as a court appointed administrator until the case is decided.  ​

    • Ingenio Santa Fé - see Central Romana, it was closed down in 2010, sugarcane grown on lands formerly of Ingenio Santa Fé are being processed at Ingenio Porvenir.

In all, the 1999 recapitalization effort did not accomplish its intended purpose. Only the agreement with Consorcio Azucarero Central to operate Ingenio Barahona worked out as expected. Of the remaining eleven sugar mills only Ingenio Porvenir is still in operation under the administration of the CEA. Despite the number of sugar mills no longer in operation, in 2024 the Dominican Republic continues to be the beneficiary of the largest assigned tariff-rate quota established by the USDA of 189,343 m. t., allowing Dominican sugar to enter the US, its main market, under a low tariff.