Venezuela grain industry facing tough times

Three consecutive years of economic contraction, hyperinflation and diminishing hard currency for imported agricultural inputs and raw materials is expected to bog down production, consumption and trade for all grain and feed products in Venezuela, according to an Oct. 5 Global Agricultural Information Network (GAIN) report from the Foreign Agricultural Service of the U.S. Department of Agriculture (USDA). In its report, the USDA noted that Central Bank cash flow shortfalls have resulted in less procurement of imported wheat and corn by the Corporation for Food and Product Services (CUSPAL). As a result, many feed manufacturers and flour mills in Venezuela are operating at less than half of capacity. More…