Miller Magazine Issue: 124 April 2020

Venezuela 88 MILLER / APRIL 2020 Venezuela is located on the northern coast of South America. The country comprises a continen- tal mainland and numerous islands in the Caribbean Sea. It is the 33rd largest country in the world. It is bordered by Brazil, Colombia and Guyana. The country covers an area of around 916 thousand square kilometers and has a population of around 28 million. Around four million people live in the capital, Caracas. Venezuela is known widely for its petroleum industry, the environmental diversity of its territory, and its natural features. Venezuela is a major oil producer, and its economy has been highly dependent on the petroleum sector. Its oil revenues account for about 99 percent of ex- port earnings. Apart from petroleum, the country’s natural resources include natural gas, iron ore, gold, bauxite, diamonds and other minerals. Venezuela is experiencing the worst economic depression in the country’s history. Without comprehensive economic reforms, there are few prospects of a recovery in the short term. Agriculture in Venezuela accounts for approxi- mately 3% of GDP, 10% of the labor force, and at least a quarter of Venezuela's land area. The coun- try is not self-sufficient in most areas of agriculture. The economic deterioration Venezuela is currently facing is driving changes in agricultural production, adjustments to consumption patterns, and unprec- edented demographic shifts. At the same time, the geopolitical environment is creating a situation where new trading partners are replacing tradition- al suppliers. The Venezuelan state has long depended on oil revenues to sustain government spending. As U.S. sanctions limited potential buyers for Venezuelan oil, the Maduro government was forced to sell oil at an increasing discount, further eroding revenue. The more recent oil price war between Saudi Ara- bia and Russia has greatly exacerbated the situa- tion and pushed Venezuelan crude to untenably low prices. The Maduro government now finds itself un- able to import fuel, purchase basic commodities, or maintain long-standing social programs at existing levels. UNMANAGEABLE INPUT SHORTAGES Venezuelan farmers are no stranger to shortag- es. In recent years, shortages of certified seeds and fertilizer have been common. But in 2020, contacts report that fuel and input shortages are unmanage- able. Producers are decreasing planted area across many traditional row crops because there is no fuel to run tractors. In making planting decisions, some farmers are selecting more productive acres for cul- tivation, which could increase yields per hectare if the gains are not offset by shortages of seed and fertilizer. Farmers are choosing to plant higher-val- ue crops when able; for example, white corn for human consumption is now favored over yellow corn for feed. Additionally, many are planting sta- ple pulses and tubers on unused acreage previously dedicated to grains. CHANGING CONSUMPTION PATTERNS Venezuelan consumption patterns are continuing to change. People are eating noticeably fewer corn and wheat products. Consumption of animal pro- teins has also dropped markedly, from an average of 5.93 kilograms per month from 1999-2014 to 0.795 kilograms per month in 2019. This consump- tion change illustrates the stark decreases in grain consumption for animal feed producers. The Ven- Many Venezuelans — confronted with long lines, ch- ronic and acute food shortages, and the government’s seeming inability to provide food to its people.