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Venezuela Agribusiness Report Q1 2014

Venezuela Agribusiness Market: New market analysis published


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2014-02-07 21:12:04 - Venezuela Agribusiness Report Q1 2014 - a new market research report on companiesandmarkets.com

The victory of Nicolás Maduro of the ruling Partido Socialista Unido de Venezuela in April will most probably ensure the continuity of many of the interventionist policies of Chávez´s era. Price fixing in particular continues to be a source of woe for producers unable to meet input costs which are soaring in line with some of the highest rates of inflation in the world. Some respite has arrived in the form of a 20% rise in the government-fixed price of food items including beef, chicken and dairy products, but even this will fall short of the rate of inflation which is expected to increase 30% year-on-year in 2013. Inflation is also contributing to the diminishing purchasing power of Venezuelan households,

 

 

while foreign currency shortages after a pre-election spending boom are causing shortages of some imported goods.

Corn consumption growth to 2017: 8.1% to 4.16mn tonnes. Consumers hit by economic turmoil will turn to the cheapest staple food, more than compensating for reduced demand from the livestock sector.

- Coffee production growth to 2016/17: 34.3% to 940,000 60kg bags. The hike in government prices and increased investment in small farms will see some recovery in supply.

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