Production in the next market year 2013/14 could increase if weather conditions and government policies improve, but significant imports will still be needed to meet the demand.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
Required Report - public distribution
GAIN Report Number: VE1304
Annual Coffee Report
David W. Cottrell
Controlled farm-gate prices and significant competition from government imports have reduced
profitability for domestic coffee producers. Production in the next market year 2013/14 could increase
if weather conditions and government policies improve, but significant imports will still be needed to
meet the demand.
Venezuela used to be self-sufficient in coffee production with enough surpluses for export but it now
relies on imports to meet domestic consumption. Production for MY 2012/13 is estimated at 730,000
bags. About 600,000 bags of imported green coffee are estimated for MY 2012/13, mainly from Brazil
and Nicaragua. Imports for 2013/14 should be around 630,000 bags to meet demand.
Coffee farmers were hopeful that the 2012 harvest would be better than previous years but the lack of
agricultural inputs, financing and unrevised price controls resulted in a production of 700,000 bags for
The lack of profitability of the coffee crop affected the method of collection and selection of harvest
during MY 2011/12. Seventy percent of the production consisted of poor quality beans. This situation
occurred because all of the beans were collected the same time.
Production for MY 2012/13 is estimated at 730,000 bags. This slight increase is due to better weather
in the coffee producing areas of the country.
Production for MY2013/14 is forecasted at 800,000 bags, assuming timely and appropriate public
financing, good supply of inputs, controlled price reviews that result in increased prices, and good
Planted area remains at about 200,000 hectares but productivity has been decreasing. Low profitability
has caused the abandonment of thousands of hectares of coffee in the last seven years. The area
harvested is currently calculated at about 180,000 hectares.
Per capita consumption is estimated at about 3 kilos per year. Local coffee consumption is considered
high when compared with other producing countries but domestic production only covers about fifty
percent of the local needs. The rest is covered by imports. Total domestic consumption during MY
2011/12 was 1,305,000 bags and it is expected to remain steady during MY 2012/13.
Since 2009, Venezuela has had to import large quantities of green coffee to supply the domestic
market. Growers claim that government price controls make it uneconomical to grow coffee.
The government is the sole importer of green coffee. Imports come mainly from Brazil and Nicaragua.
During MY 2011/12, total coffee imports were reported at 575,000 bags, and are estimated to increase
to 606,000 bags during MY 2012/13. Industry leaders “Cafe Madrid” and “Fama de America” were
nationalized by the government four years ago and now operate with imported raw material. These two
companies still have nearly an 80 percent market share and a strong distribution network.
For MY 2013/14, imports are forecasted at 630,000 bags. Despite restrictions on trade and internal
movement of food products, coffee exports continue, primarily to Colombia, as Venezuela's exchange
rate policy and other factors make this illegal trade attractive.
Coffee is one of the basic food basket products that are under a control price regime (established by the
government of Venezuela in 2003). Farm-gate prices for green coffee and ground coffee retail prices
have not been adjusted since September 2012 and November 2012, respectively, when the Government
was forced to review the controlled prices due to pressures from the market. But many small farmers
and processors still claim that the prices set by the government are not high enough to cover production
Production, Supply and Demand Data Statistics:
Coffee, Green Venezuela 2011/2012 2012/2013 2013/2014
Market Year Begin: Oct 2011 Market Year Begin: Oct 2012 Market Year Begin: Oct 2013
USDA Official New Post USDA Official New Post USDA Official New Post
Area Planted 200 200 200 200 200
Area Harvested 180 180 180 180 180
Bearing Trees 500 500 500 500 500
Non-Bearing Trees 30 30 30 30 30
Total Tree Population 530 530 530 530 530
Beginning Stocks 232 232 273 103 54
Arabica Production 850 700 880 730 800
Robusta Production 0 0 0 0 0
Other Production 0 0 0 0 0
Total Production 850 700 880 730 800
Bean Imports 600 570 385 600 630
Roast & Ground Imports 1 1 5 1 1
Soluble Imports 5 5 10 5 5
Total Imports 606 576 400 606 636
Total Supply 1,688 1,508 1,553 1,439 1,490
Bean Exports 100 100 80 80 80
Rst-Grnd Exp. 0 0 0 0 0
Soluble Exports 0 0 0 0 0
Total Exports 100 100 80 80 80
Rst,Ground Dom. Consum 1,285 1,285 1,290 1,285 1,290
Soluble Dom. Cons. 30 20 30 20 20
Domestic Use 1,315 1,305 1,320 1,305 1,310
Ending Stocks 273 103 153 54 100
Total Distribution 1,688 1,508 1,553 1,439 1,490
1000 HA, MILLION TREES, 1000 60 KG BAGS