Venezuela – A Country in Chaos

IP.w-Venezuela-A-Country-in-Chaos-170628
A stolen police helicopter buzzing  Venezuela's Supreme Court yesterday
Jun 28, 2017
CARACAS, VENEZUELA -- Venezuela, one of the world’s most oil-rich countries has become one of the poorest and most dysfunctional over the last few years.  It is a nation in crisis.  Over 90 percent of their export earnings are derived from petrochemicals, the price of which has plummeted over the last several years.  The low price of oil brings into question how much longer the Petrocaribe Agreement, an oil alliance between Venezuela and several Caribbean states, can last and with it, Venezuela’s influence in the Caribbean and Latin America.  

Regardless of its dire finances and rampant food shortages, Venezuela is a large importer of U.S. rice.  Last year, they brought in nearly 300,000 MT of U.S. rice and likely even more, as several other countries import U.S. rice and re-export it to Venezuela.  

“A collapse of the state in Venezuela is worrisome not only from a humanitarian stance but also for the rice industry, as nearly 10 percent of our exports end up there,” said Brian King, USA Rice chairman and chairman of the USA Rice Western Hemisphere promotion subcommittee.  “This week, President Maduro called for an assembly to rewrite Venezuela’s constitution; things could spiral out of control quickly.”

While USA Rice does not conduct activities in Venezuela, it’s an important market that we monitor.  We work closely with the USDA Foreign Agricultural Service posted in Caracas, discussing ideas such as the potential for eventual food aid shipments.
 

Sign-Up for the Daily

Recent Articles

  • Rice Issues Abound in South Korea

    Nov 13, 2018

    Last week’s Agricultural Trade Mission (ATM) to Korea gave USA Rice the opportunity to highlight strong market opportunities for U.S. rice but also to underscore continued obstacles put in our way by Korea’s government. Full story
  • Rice Matters at FDA Discussion

    Nov 09, 2018

    Last week the Mississippi Farm Bureau hosted Dr. Stephen Ostroff, deputy commissioner of the U.S. Food and Drug Administration (FDA), for an agricultural roundtable to discuss a range of recent FDA regulations. Full story
  • South Africa Trade Mission Taps New Markets

    Nov 08, 2018

    Last week USA Rice participated in a Trade Mission here led by Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney and organized by the United States Department of Agriculture (USDA). Full story
  • WASDE Report Released

    Nov 08, 2018

    This month’s outlook for 2018/19 U.S. rice is for fractionally higher supplies, reduced exports, and higher ending stocks. Full story
  • Midterm Election Results

    Nov 07, 2018

    Most midterm elections results are in and the for-sure case is that Democrats have taken control of the House and Republicans solidified their hold of the Senate. Full story