Venezuelan Sugar Shortage Stimulates Production

CARACAS - Jan 5/04 - SNS -- Severe shortages of sugar in Venezuela in November are expected to stimulate increased plantings in 2004, with the result sugar production could advance from 500,000 metric tons (MT) in 2002-03 to 550,000 MT in the coming season.

Despite the projected gains, Venezuela will remain an important sugar importer, with raw sugar purchases expected to advance from an estimated 230,000 to 250,000 MT; while refined sugar imports drop from 41,000 to 20,000 MT.

Reporting on the sector, the U.S. agricultural attache here said Colombia supplies most of the imported sugar. Guatemala, Ecuador, Nicaragua and the U.S. have also been recent suppliers of sugar according to Venezuelan data. Most sugar is imported raw, as there is sufficient refining capacity in the country.

Trade agreements between Venezuela and other Latin American countries with preferential tariff rates also affect trade flows. Trade data in this report has been revised to reflect revised Venezuelan government import statistics. Post is also utilizing Colombian export statistics in our trade matrices.

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