Monday, March 16, 2009

Billy Blanks Bands Adjust

The food industry in turmoil

In recent weeks the Venezuelan government took control of all rice producers in the country, and for a period of 90 announced days. The private sector is accused of failing to comply with price regulation applied to this classic ingredient of daily diet of the population. President Hugo Chavez has also ordered the expropriation of a factory of the multinational Cargill.

The measure is motivated by the fact that the private sector is trying to circumvent the control prices, producing mainly rice varieties "to taste", which can be sold up to three times the rate set by the state. The employers' federation is shocked and insists that companies "can not sell at a loss", for its part the government invokes the "food security".

"They buy the rice producers and they refuse to produce the regulated price, so I ordered the intervention in the sector of agro-industry," said Hugo Chávez late February, which immediately ordered the National Guard and army to support "plug and response of all firms producing rice in Venezuela "(58 plants total).

Wednesday, March 4, another step was taken with the decision to expropriate one of the plants of the multinational Cargill, located in the western state of Portuguesa. According to authorities, the company was producing "not a single kilo 'rice base, but spent the entire production (2400 tons per month) rice varieties are not subject control of prices.

"Begin the process of expropriation of Cargill, plus a judicial inquiry because what they do is a flagrant violation (of law)" announced the Venezuelan representative at a meeting of the Council of Ministers. Legislation on food security and sovereignty manifests the food as a good utility. It allows the expropriation by presidential decree of companies do not comply with this legal framework and the "cons pay a fair price."

According to authorities, the targeted production of varieties that are not regulated could lead to a deficiency in the supply of staple foods. In practice, it is difficult to find the package of rice on the shelves of conventional supermarkets. Several products are also concerned and agribusiness firms must now meet the production quotas of foodstuffs to regulated prices.

For example, sugar mills, coffee or cheese must earmark 95% of their production to the regulated version of the product. The remaining 5% may be used for alternatives to the free fare. Regarding rice, the controlled amount must match 80% of production.

President Chavez has warned that the takeover of factories, normally scheduled for a period of 90 days, could lead to further expropriations if companies do not cooperate in supplying the country. For his part, President of the Employers' Federation (Fedecámaras), José Manuel González, said he was ready for dialogue with the government "if the President departs from his political project" which advocates the establishment of "socialism of the century ".

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