CARACAS, VENEZUELA — Economic uncertainty and higher input costs likely will hamper increased corn acreage and limit yields for Venezuela in marketing year 2024-25, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The FAS sees corn production at 1.36 million tonnes on planted area of 350,000 hectares, down slightly from 1.4 million tonnes estimated for 2023-24 on 329,000 hectares. Production will feature 975,000 tonnes of white corn and 325,000 tonnes of yellow corn.

Inflation of the Bolivar and a scarcity of US dollars have increased agricultural input costs, including fertilizers and pesticides, leading to yield decreases as producers purchase lower volumes of agrochemicals, according to the report.

“Although corn production has grown steadily since 2020, the lack of consistent financing remains the primary constraint on Venezuelan farmers’ ability to increase planting area,” the FAS said.

Total corn consumption is likewise seen dropping to 2.3 million tonnes in 2024-25 from 2.5 million tonnes in 2023-24. Consumption was up 25% in 2023-24, owing to increased public spending on domestic food aid programs and improved economic conditions. About 900,000 tonnes will be imported in 2024-25 to meet demand, with the United States as the top supplier.

The milling industry’s installed capacity for producing corn flour (precooked) for human consumption is about 100,000 tonnes per month. Presently, Venezuela produces about 90,000 tonnes per month of corn flour, consisting of 50,000 tonnes of white corn and 20,000 tonnes of yellow corn.

As a food staple, rice consumption has remained essentially unchanged in both 2023-24 and 2024-25 at about 730,000 tonnes due to competitive pricing compared to other staple foods, including wheat and corn flour. Production of rice is projected to reach 373,000 tonnes in 2024-25, up from 305,000 the previous year. 

This growth is based on a 16% increase in planted area to 110,000 hectares, in addition to improved yields. Rice is the second largest crop by area planted in Venezuela behind corn. To meet consumer demand, imports for 2024-25 are forecast at 380,000 tonnes, down from 445,000 year on year due to the growth in domestic production. Major suppliers of rice include the United States, Brazil, Guyana and Uruguay. 

Venezuela’s wheat market is entirely dependent on imports to meet expected consumption of 1.45 million tonnes wheat grain equivalent in 2024-25 based on stable, local demand. Turkey, Canada and Russia are the main suppliers.