Venezuela Agribusiness Q4 2018
The operating environment for Venezuela's agribusiness sector has deteriorated significantly over recent years, due tothe poor macroeconomic climate, a shortage of foreign currency for input purchases and general government mismanagement.Venezuela's economy will continue to be under extreme downward pressure in 2018 and 2019 amid hyperinflation and severelyweakened public and private finances among others. The economy's growing headwinds will continue to weigh on agriculturalproduction and consumption in the coming years, and we forecast most commodities to stagnate through to 2021/22. We haveagain revised down our production estimates this quarter as the situation is showing no sign of improvement yet. Producers willcontinue to struggle as rising production costs, shortage of agriculture inputs and controlled prices at the farm level reduce margins.As such, the divergence between Venezuela and its neighbouring countries in terms of agricultural sector development willcontinue to grow in the coming years.
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