Venezuela - BNBEAMR
03/05/2009
President Chavez ordered the expropriation of an important rice mill in Acaricua, Portuguesa State. The mill produces the Santa Ana Parboil rice brand owned by American food giant Cargill [CARG.UL]. The decision came after several warnings. Food prices have nearly doubled in Venezuela ever since Chavez announced a Constitutional amendment last year, which was approved by a popular referendum February 15th. The change to the Constitution allows any holder of public office to have no limits in runs for election, Chavez and opposition Governors included.
The private sector (Contra-Revolution) in Venezuela is known for retaliating by punishing the populations with food shortages and price increases. Venezuelan law regulates prices on foods part of the Venezuelan daily diet. Production companies must assign 80% of their total capacity to those regulated items (rice, oil, coffee, flour, sugar,beans,bread, meats, milk) and 20% to special flavor products. To assure food security and price stability.
Cargill was producing 0% of the regulated rice, and 100% of their 2,400 thousand tons per month was produced as flavored rice sold at twice the regulated price of 2.3 Bs.F per Kilo. Rise would be mixed with a kind of bullion powder. Flavor powder worth $15 would be sufficient to flavored die their monthly capacity. Clearly violating regulations and intentionally alarming the populations with the increase of price. Venezuelan food giant Polar had a rice plant under military and worker controlled this week to the same violations. Workers in the plants resume operations and increased production of the regulated Rice after the announcements.
Meanwhile, reuters reported today "The Chicago Board of Trade rough rice futures for March delivery RRH9 ended 18-1/2 cents weaker at $11.94-1/2 per hundredweight, hovering near a two-year low." Of course, Pro-Capitalism analysts blame the financial world crisis on Chavez.
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