The Long Journey: Us Wheat Reaches Bolivia

Bolivia's wheat market is heavily reliant on imports, with the country only producing about 20% of the wheat it consumes. In 1988, the United States Agency for International Development (AID) provided 180,000 tons of wheat through its Food for Peace Program, and the country continues to be a significant supplier. In 2022, Bolivia imported $3.34 million worth of wheat, with Argentina, Mexico, and Brazil being the primary sources. Bolivia's wheat imports are essential to meet domestic consumption requirements, as local production often falls short of demand.

The US Agency for International Development (AID) provides wheat to Bolivia

The US Agency for International Development (USAID) has been providing aid to Bolivia since 1964. Its purpose has been to help the Bolivian government improve the lives of its citizens and support the country's National Development Plan. In 2013, the Bolivian government expelled USAID, bringing an end to its programs in the country.

In 1988, the United States Agency for International Development (AID) provided 180,000 tons of wheat to Bolivia through its Public Law 480 Food for Peace Program. This was a significant contribution, as Bolivia was only able to produce about 20% of the wheat it consumed domestically in the late 1980s. The AID program was similar to those operated by Western Europe and Canada, but on a larger scale.

Bolivia's wheat production has faced several challenges over the years. The country's National Wheat Institute has made repeated attempts to achieve self-sufficiency in wheat production, but with limited success. In 1988, about 88,000 hectares of land produced 60,000 tons of wheat, while 280,000 tons of wheat were imported. Smuggled wheat flour from Peru and Argentina posed a serious threat to domestic wheat production, with an estimated 60,000 tons entering Bolivia annually.

In addition to wheat, Bolivia also received support from AID in other areas such as soybean production. AID, in collaboration with the National Association of Soybean Producers (Asociación Nacional de Productores de Soya—Anapo), helped build new storage facilities that allowed for the continued expansion of soybean crops.

Argentina is Bolivia's main wheat importer

In 2022, Bolivia imported $3.34 million worth of wheat, making it the 154th largest importer of wheat in the world. The largest import origin for wheat in Bolivia is Argentina, from which Bolivia imported $3.34 million worth of wheat in 2022. This makes Argentina Bolivia's main wheat importer.

In addition to wheat, Bolivia also imported $63.2 million worth of wheat flours in 2022, with Argentina again being the largest import origin, accounting for $62.5 million of this amount.

Despite the efforts of Bolivia's National Wheat Institute (Instituto Nacional del Trigo) to make the nation self-sufficient in wheat production, Bolivia produced only about 20% of the wheat it consumed in the late 1980s. In 1988, Bolivia imported 280,000 tons of wheat, with the United States Agency for International Development (AID) providing 180,000 tons of this amount through its Food for Peace Program. Western Europe and Canada operated similar programs but on a smaller scale.

Bolivia's wheat production is low due to a lack of resources

• Lack of infrastructure: The lack of roads and easy access to ports make it difficult for farmers to get their produce to domestic and export markets. This is a significant issue, as the export market provides the most potential for the sector's growth.
• Lack of credit: Farmers in Bolivia struggle to access credit due to government policies, the use of credit for political ends, and strict lending procedures from commercial banks. This makes it difficult for them to invest in their farms and improve production.
• Outdated technology: Bolivia has the worst farming technology in South America, which makes farmers more vulnerable to droughts and floods. The lack of modern technology, such as irrigation systems, also contributes to low wheat yields.
• Political instability and difficult topography: These factors have constrained efforts to modernize the agricultural sector.
• Low population growth and low life expectancy: These demographic issues have kept the labor supply in flux and prevented industries, including wheat production, from flourishing.
• Competition from contraband imports: Bolivian farmers face competition from smuggled wheat flour from neighboring countries, which has negatively impacted domestic wheat production.

To improve wheat production, Bolivia needs to address these issues by investing in infrastructure, providing better access to credit for farmers, adopting modern farming technology, and stabilizing its political and economic environment.

Bolivia's wheat is mostly used for domestic consumption

Bolivia's wheat is primarily used for domestic consumption, with the country importing wheat to meet its demand. In 2022, Bolivia imported $3.34 million worth of wheat, making it the 154th largest importer of wheat in the world. The country sources wheat from various countries, with Argentina being the main supplier, followed by Mexico and Brazil.

Despite efforts by the National Wheat Institute to achieve self-sufficiency in wheat production, Bolivia has only been able to produce about 20% of the wheat it consumes. In 1988, for example, Bolivia produced 60,000 tons of wheat while importing 280,000 tons. The gap between domestic production and consumption has led to a reliance on imports to meet the demand for wheat in the country.

The United States Agency for International Development (USAID) has provided support to Bolivia's wheat supply through its Food for Peace Program. In 1988, USAID supplied 180,000 tons of wheat to Bolivia, contributing to the country's efforts to secure sufficient wheat for its population.

While Bolivia does export some wheat, it is a relatively small amount. In 2022, Bolivia exported $303 worth of wheat, making it the 125th largest exporter of wheat globally. The primary destinations for Bolivian wheat exports are Sweden and Bahrain.

The wheat market in Bolivia is influenced by various factors, including production levels, import sources, and domestic consumption patterns. The country's focus on meeting the wheat needs of its population contributes to the majority of its wheat being used for domestic consumption.

Wheat flour is smuggled into Bolivia from Peru and Argentina

Despite the best efforts of the National Wheat Institute to make Bolivia self-sufficient in wheat production, the country only produced about 20% of the wheat it consumed in the late 1980s. In 1988, Bolivia imported 280,000 tons of wheat, with wheat flour being smuggled into the country from Peru and Argentina, posing a serious threat to domestic wheat production. Analysts estimated that 60,000 tons of smuggled wheat entered Bolivia annually.

In 2024, the retail price range for wheat in Bolivia is between $0.50 and $0.81 per kilogram or between $0.23 and $0.37 per pound. The wholesale price is lower, ranging from $0.35 to $0.57 per kilogram or $0.16 to $0.26 per pound. The price disparity between Bolivia and its neighboring countries creates an economic incentive for smuggling wheat flour into the country.

The smuggling of wheat flour and other goods into Bolivia is driven by economic need. The COVID-19 pandemic, for example, increased demand for black-market goods as it complicated illicit cross-border operations and intensified the demand for cheap essential goods. Bolivia's Center for Labor and Agrarian Development reported some of the worst spikes in unemployment and poverty in decades, largely due to COVID-19.

The smuggling of wheat flour and other contraband into Bolivia has negative consequences for the country. It drives down prices and fills the market with inferior products. Additionally, any agricultural product introduced illegally into the country poses a risk to public health and facilitates the entry of agricultural diseases and pests, as the origin of these products is unknown and unverified.

Frequently asked questions