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US vows ag aid as Venezuela seeks fertz boost

  • : Fertilizers, Natural gas
  • 26/09/14

Expanded US agricultural cooperation with Venezuela could support Caracas' plans to boost fertilizer output but could also increase competition in other markets, some producers in key Venezuelan agricultural states say.

On 10 September the US Department of Agriculture announced measures aimed at opening the Venezuelan agricultural market, including for US exporters.

The deal lifts US restrictions on foreign banks dealing with Venezuelan agricultural producers and expands technical support for the sector, among food assistance and other measures. It also promotes sales of US farm products to Venezuelan importers through an export guarantee credit program.

Expansion of Venezuela's agricultural sector would support more demand for fertilizer, and the measure comes as Venezuelan state petrochemical company Pequiven is seeking to boost urea and ammonia production to 300,000 metric tonnes (t) from September to December, a source at the Pequiven complex in El Tablazo, Zulia state, said.

Venezuela exported 421,972t of urea in 2025 and is still Latin America's largest producer, but some sources have indicated that production has declined in recent years. Venezuela has had 2.2mn t/yr of granular and prilled urea production capacity since 2015, according to Argus consulting.

Pequiven recently restarted imports from its Colombia-based subsidiary Monomeros of NPK fertilizer. It has focused supplying domestic urea to agricultural producers in the state of Portuguesa, a key producer of corn, sugar cane and rice.

Producers in Portuguesa are cautiously optimistic that the US deal could help open their market access, but some were concerned that it could create a competitive advantage for US agricultural exports, market sources said.

Sugar producers in Portuguesa have protests increased imports of their product from Brazil in recent days.

Financial sanctions and restrictions as well as frequent power outages in Venezuela have hurt agricultural production in states including Portuguesa, Barinas and Guarico.


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