Chavez Threatens To Nationalize Food Producers

Moderators: DrVolin, 82_28, stillrobertpaulsen, Jeff

Chavez Threatens To Nationalize Food Producers

Postby judasdisney » Wed Feb 06, 2008 8:09 am

Chávez threatens to nationalise food companies
Published: Tuesday 05 February 2008 09:18 UTC
Last updated: Tuesday 05 February 2008 16:00 UTC

Caracas - Venezuelan President Hugo Chávez has threatened to nationalise the country's major food distributors if they are caught hoarding. The president warned the food industry that he was hoping they would give him an excuse to intervene.

Venezuela is facing an increasing shortage of foodstuffs which, according to the food industry, is caused by government price controls. The maximum prices imposed by Caracas are so low that supermarkets are often forced to sell products at a loss or stop selling them altogether.

However the government says the shortages are caused by ruthless capitalists who are hoarding goods in order to drive up prices. The major food distributors are also accused of smuggling their products to Colombia, where they fetch higher prices.
judasdisney
 
Posts: 832
Joined: Tue Jun 20, 2006 3:32 pm
Blog: View Blog (0)

Postby judasdisney » Mon Feb 11, 2008 3:02 am

Chavez Warns That Venezuela May Seize Nestle, Parmalat If Sabotage Continues

CARACAS (AFP) -- Venezuelan President Hugo Chavez on Sunday warned Venezuela could expropriate milk processing plants based here and owned by Italy's Parmalat SPA (PLT.MI) and Swiss-owned Nestle SA.

"It doesn't make any difference if we set up (state) milk processing plants if there is no milk to process because it is all taken away by Parmalat or Nestle," Chavez complained in his weekly radio and television program "Hello Mr. President."

"This government has got to take a tougher line," he warned.

"If it is proven that Nestle or Parmalat -- under different economic means of pressure or blackmail, such as by offering money in advance -- are making off with the raw milk output and leaving state plants without the milk they need, then that is called sabotage.

The Constitution has to be enforced, the government has to step in and expropriate the plants," Chavez stressed.

"We are facing an economic conspiracy and we are forced to act to defend national security," Chavez added.

Venezuela for months has been rocked by shortages of basic foods such as milk, eggs, sugar, beef, chicken and wheat flour. Milk is among the products that has faced the worst supply woes.

Caracas blames exporting to other countries for the supply chain woes. Exporters blame price controls the government put in place five years ago.
judasdisney
 
Posts: 832
Joined: Tue Jun 20, 2006 3:32 pm
Blog: View Blog (0)


Return to Latin America

Who is online

Users browsing this forum: No registered users and 1 guest