Venezuela’s poultry industry enjoys third year of growth

The Venezuelan poultry industry has recorded its third year of growth following a serious contraction. Market conditions suggest that further growth could lie ahead.

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Venezuelans have a preference for fresh, locally produced product over frozen, imported chicken. Juanmonino | iStock.com

The Venezuelan broiler industry grew by 12.8% last year, continuing the trend that started in 2019 following a significant downturn in the industry.

While challenges remain, industry initiatives and an improving economic environment have seen a turnaround in the sector’s fortunes since the dark days of 2015-2018.

Francisco Tagliapietra, director of Venezuela’s national federation of poultry producers (Fenavi-Venezuela) notes that supply and demand for chicken meat are now more balanced in the country and that producers are continuing to invest.

Where growth prospects are concerned, chicken is not only the most affordable of all meats in the country, but consumption per head of population is still low. At 9.74 kg per capita, it is the lowest in the region meaning that, should incomes continue to increase as they have over recent years, poultry producers should benefit.

Tagliapietra notes that, currently, 60% of the animal protein consumed by Venezuelans each day comes from poultry, but a lack of purchasing does remain an issue. He believes that, once this improves, the industry will really move forward.

Incomes are improving. While use of the dollar is not officially sanctioned, its unofficial use has, without a doubt, brought benefits to the country, particularly where the minimum salary is concerned. Venezuela’s official minimum salary is US$1 per month, while on the unofficial market it is US$60.

Supply chain improvements

While purchasing diesel, for example, can still be difficult, purchasing feed grains has become easier.

Previously, the government had been responsible for the purchase and distribution of all raw materials. Now, however, there is a free market and this has been importing soy and corn, for example, much easier. Use of the US dollar is not officially sanctioned, it does circulate meaning that companies can use it directly, rather than having to go to state bodies to buy foreign currency.

The industry is also enjoying an additional benefit, exemption from tariffs, value added tax and port taxes for raw materials that are used to strengthen local industries.

Where corn is concerned, there is national production. However imports are permitted at certain times of the year, with imports coming from Argentina, Brazil and the U.S.

Return to past glories

Many years ago, Venezuela was one of the largest poultry producers in the region, and Tagliapietra notes the sector is ready to grow to that position again once circumstances permit.

It has the built capacity to produce 1.3 million metric tons of broiler met per annum, and investment has insured those facilities have been kept up to date. As importantly, the industry has preserved its genetic stock meaning that, should the opportunity arise, the industry can respond quickly.

“To do this we would have to work a lot, but we have the conditions to do so," notes Tagliapietra.

Favorable disease status

Despite limited resources, the country’s health status has not deteriorated significantly. There are issues with Newcastle disease, but vaccination programs are implemented, flocks are protected and farms are kept in a good state of repair. There have been no reports of avian influenza outbreaks.

Consumer trust

Tagliapietra notes that local consumers trust and identify with Venezuelan chicken. Some years ago there were significant imports from Brazil. While it may have been of excellent quality, consumers noted the difference, he continues, preferring locally produced fresh chicken over imported frozen product.

Venezuelan producers now supply 100% of the local market with both chicken meat and eggs and, importantly for the Venezuelan consumer, the country’s food safety regulations are about to be reviewed for the first time since the current regulations were introduced in 1986.

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Unofficial use of the US$ has been beneficial for the Venezuelan economy in a variety of ways, not least in increasing consumer purchasing power. Vitoria Holdings LLC | iStock.com

 Eggs

While broiler producers may have enjoyed healthy growth in 2021, this was not the case for the country’s egg industry, which contracted by 13% to stand at 8.1 million boxes of 360 eggs. Like the broiler industry, the layer sector is ready to respond to any future increase in demand.

Future expectations

The Venezuelan industry is now keen to grow further and perhaps also to innovate, but all depends on the acquisitive power of the consumer. Most Venezuelan companies are integrated, to varying degrees, with facilities that have been kept up to date and being able to produce protein quickly, the industry should be able to respond as demand rises.


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