Venezuela: Grain and Feed Annual
In marketing year (MY) 2021/22, corn and rice production is forecast to increase due to greater area planted and slightly improved yields. Since the Maduro regime’s mid-2019 decision to allow the private sector to import, agricultural producers associations are pooling resources to purchase imported inputs. Venezuelan farmers had a greater incentive to plant more, given the prospect of being paid in U.S. dollars, instead of the devalued Venezuelan Bolivar. The rapid dollarization of the economy will possibly lead to a modest improvement of purchasing power in the forecast year, too. Despite increases in corn and rice production, FAS Caracas expects imports of corn and rice to increase compared to USDA’s MY 2020/21 estimates, assuming the private sector maintains control of the import market. FAS Caracas forecasts a slower year for Venezuelan wheat imports, reflecting that domestic milling capacity is down.