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Venezuela: Determinants of Wheat Import Demand

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  • Setia, Parveen
  • Dusch, Erin

Abstract

Venezuela is totally dependent on imported wheat to satisfy its large domestic demand for wheat breads, pasta, and other products. Until the mid-1980's, Venezuelan millers imported more than 80 percent of their high-quality, high-protein spring and durum wheats from the United States on a cash basis. Since then, the U.S. market share has fallen to about 34 percent because of aggressive marketing by Canada. Interviews with selected millers indicate that trade servicing, in addition to price and quality, is important in choosing the supplier. Given the proximity of the United States to Venezuela and abundant supplies of U.S. wheat throughout the year, respondents expressed a willingness either to pay $4-$5 more per ton or to increase imports by as much as 30 percent for cleaner U.S. wheat.

Suggested Citation

  • Setia, Parveen & Dusch, Erin, 1993. "Venezuela: Determinants of Wheat Import Demand," Staff Reports 278724, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278724
    DOI: 10.22004/ag.econ.278724
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    File URL: https://ageconsearch.umn.edu/record/278724/files/ers-report-607.pdf
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    References listed on IDEAS

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    1. Johnson, D. Demcey & Wilson, William W., 1992. "Measuring the Impact of Dockage on Foreign Demand for U.S. Wheat," Agricultural Economics Reports 23172, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Trapido, Paul J., 1984. "Venezuela: An Export Market Profile," Foreign Agricultural Economic Report (FAER) 147521, United States Department of Agriculture, Economic Research Service.
    3. Wilson, William W., 1989. "Differentiation And Implicit Prices In Export Wheat Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), pages 1-11, July.
    4. Atkinson, L. Jay & Blaich, Oswald P., 1983. "Venezuela: A Prospective Market for Grain and Livestock Products," Foreign Agricultural Economic Report (FAER) 147215, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Lavoie, Nathalie, 2003. "The Impact Of Reforming Wheat Importing State-Trading Enterprises On The Quality Of Wheat Imported," 2003 Annual meeting, July 27-30, Montreal, Canada 21901, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lavoie, Nathalie, 2003. "The Impact Of Reforming Wheat Importing State-Trading Enterprises On The Quality Of Wheat Imported," Working Paper Series 14512, University of Massachusetts, Amherst, Department of Resource Economics.

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