The Venezuelan fruits and vegetables market is estimated to register a CAGR of 3.5% during the forecast period of 2020-2025.
The total production of fruits increased by 4.3% from 3,139,004.0 metric ton in 2016 to 3,275,248.0 metric ton in 2018, while vegetable production increased marginally from 1,118,878.0 metric ton in 2016 to 1,188,655.0 metric ton in 2018.
Agriculture contributed an estimated share of 4.7% to the GDP of Venezuela in 2017. After a drastic fall in the production of vegetables in the year 2019, the country is estimated to witness an increased production by almost 15% in 2020, as stated by the Confederation of Associations of Agricultural Producers of Venezuela (FEDEAGRO). The surge in production is expected to be supported by an increase in the amount of potato, broccoli, carrot, and branch production.
Key Market Trends
Government Initiative Driving Urban Farming Practices
The government's "Great Agro- Venezuela Mission" was initiated in 2016, in a bid to recover urban spaces for food production, including fruits and vegetables, in response to the acute food shortage on retail shelves and spiraling inflation in the economy. The National Urban Agriculture Plan 2018 aids the urban farming initiative by aiming to cover 96,000.0 hectares across the national territory and produce more than 2,071,000.0 metric tons of food. The initiative has been able to gain momentum with multiple households currently functioning small production units on rooftops and even in the public green areas such as schoolyards and public institutions. According to government statistics, in the first half of 2016, 135,000 Venezuelans produced 273 metric ton of vegetables, fruit, and herbs in urban settings. However, the production fell short of the nationwide aim of producing 3,500 metric ton for the year. The National Plan 2018 also imposed a greater emphasis on Venezuela’s ground-breaking urban production mission through the Green Rooves and Productive Garden programs. As a result, a greater rate of participation, as well as awareness among the individuals as a result of the initiative, is further anticipated to drive the production of fruits and vegetables in the country during the forecast period.
Dearth of Agriculture Inputs Restraining the Market
According to the Venezuelan Seed Association (AVESEM), the country currently faces an acute shortage of agricultural inputs, in order to meet the demand for domestic crop production, including fruits and vegetables. As stated by Aurelio Sanchez, the President of AVESEM, only 20,000.0 hectares of the total 80,000.0 hectares suitable for cultivation were planted with vegetable seeds in 2019. In addition, the seed deficit has been mounting since 2016 and the country does not possess even 3% of the total seed requirement in the country. As a result, the total area harvested also declined from 68,245.0 hectares in 2015 to 57,229.0 hectares in 2017. It has been reported that a kilogram of tomato nearly cost USD 0.43 (32,000 Venezuelan Bolivars) in 2019, which is equal to the minimum wage figure in the country. Therefore, an astute shortage of seeds and other inputs in the horticulture industry resulted in declining levels of production and sky-rocketed prices of vegetables in the country.
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The total production of fruits increased by 4.3% from 3,139,004.0 metric ton in 2016 to 3,275,248.0 metric ton in 2018, while vegetable production increased marginally from 1,118,878.0 metric ton in 2016 to 1,188,655.0 metric ton in 2018.
Agriculture contributed an estimated share of 4.7% to the GDP of Venezuela in 2017. After a drastic fall in the production of vegetables in the year 2019, the country is estimated to witness an increased production by almost 15% in 2020, as stated by the Confederation of Associations of Agricultural Producers of Venezuela (FEDEAGRO). The surge in production is expected to be supported by an increase in the amount of potato, broccoli, carrot, and branch production.
Key Market Trends
Government Initiative Driving Urban Farming Practices
The government's "Great Agro- Venezuela Mission" was initiated in 2016, in a bid to recover urban spaces for food production, including fruits and vegetables, in response to the acute food shortage on retail shelves and spiraling inflation in the economy. The National Urban Agriculture Plan 2018 aids the urban farming initiative by aiming to cover 96,000.0 hectares across the national territory and produce more than 2,071,000.0 metric tons of food. The initiative has been able to gain momentum with multiple households currently functioning small production units on rooftops and even in the public green areas such as schoolyards and public institutions. According to government statistics, in the first half of 2016, 135,000 Venezuelans produced 273 metric ton of vegetables, fruit, and herbs in urban settings. However, the production fell short of the nationwide aim of producing 3,500 metric ton for the year. The National Plan 2018 also imposed a greater emphasis on Venezuela’s ground-breaking urban production mission through the Green Rooves and Productive Garden programs. As a result, a greater rate of participation, as well as awareness among the individuals as a result of the initiative, is further anticipated to drive the production of fruits and vegetables in the country during the forecast period.
Dearth of Agriculture Inputs Restraining the Market
According to the Venezuelan Seed Association (AVESEM), the country currently faces an acute shortage of agricultural inputs, in order to meet the demand for domestic crop production, including fruits and vegetables. As stated by Aurelio Sanchez, the President of AVESEM, only 20,000.0 hectares of the total 80,000.0 hectares suitable for cultivation were planted with vegetable seeds in 2019. In addition, the seed deficit has been mounting since 2016 and the country does not possess even 3% of the total seed requirement in the country. As a result, the total area harvested also declined from 68,245.0 hectares in 2015 to 57,229.0 hectares in 2017. It has been reported that a kilogram of tomato nearly cost USD 0.43 (32,000 Venezuelan Bolivars) in 2019, which is equal to the minimum wage figure in the country. Therefore, an astute shortage of seeds and other inputs in the horticulture industry resulted in declining levels of production and sky-rocketed prices of vegetables in the country.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 REGIONAL ANALYSIS
7 COMPETITIVE ANALYSIS
Methodology
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