Venezuelan Coffee Industry introduces Fine Coffee producing countries

Venezuela's coffee industry has continued to shrink in recent years. The Government encourages coffee cultivation by introducing new varieties and providing loans to farmers. Venezuelan coffee production accounted for more than 7% of global coffee production in the 19th century, but since the discovery of oil in the early 20th century, coffee cultivation has declined. Venezuela currently produces less than 1% of the world's coffee.

According to statistics from the Venezuelan Agricultural Federation, in the ten years from 1999 to 2009, Venezuela's coffee production decreased from 1.6 million quintals to 1 million quintals, a decrease of 37.5%, and per capita production decreased from 3.6 kg to 1.5 kg, a decrease of 58.3%.

Coffee production in Venezuela was basically able to meet domestic demand before the government imposed a price limit on coffee in 2007. The government's price-fixing measures have affected the reinvestment of the industry and the output has declined. Since 2008, Venezuela has resumed importing coffee to meet market demand. Imports in 2009 were 450,000 quintals, and imports are expected to reach 550,000 quintals this year.

Commercial Office in Venezuela

June 24, 2010

Recently, in Venezuela's state-owned coffee chain "Venezuela Cafe", there has been a particularly interesting phenomenon: the store provides customers with two contrasting price lists, where each coffee has two prices of "socialist" and "capitalist". In this particular way, coffee shops aim to show customers the disadvantages of free markets and the benefits of regulated economies.

At a "Venezuelan Cafe" in downtown Caracas, Venezuela's capital, the "socialist" price of a large cup of coffee on the menu is 2.5 bolivars (about 3.87 yuan). In addition, the menu lists the "capitalist" price of this coffee sold elsewhere as 5 bolivars (about 7.74 yuan). It is said that this is done both to provide Venezuelans with discounted coffee and to promote the left-wing politics of Venezuelan President Chavez.

This approach of the cafe has been supported by many Venezuelan citizens, and the queue of guests has been extended to the road. Many said they would be happier if coffee shops offered more cheap coffee. Cristobal Isturiz, a 70-year-old interior decorator sipping coffee with friends on the cafe's terrace, said: "This cafe is a symbol of the state's policy to eliminate the exploitation of the poor."

Critics, meanwhile, argue that Café Venezuela and other similar initiatives are populist gimmicks that mask Venezuela's deep economic problems.