Venezuela's food production tumbles 6.9% in January 2012

[spanza]

The economic situation of Venezuelan private industry, which is regularly examined by the Central Bank of Venezuela (BCV), shows that some areas of the industrial sector have slowed down, with significant declines in areas such as food, clothing and chemical products.

Industrial production in January 2012 recorded a slight progress (0.4%) versus January 2011. However, the food processing and beverage industry reported a noticeable decrease (6.9%), reaching the lowest production level since 2007.

Analysts believe that food production was hit by uncertainty around the government announcement of a new Law on Fair Prices and Costs. During the first two months, there was no clear information about the companies that would be hit by the strengthening of government controls.

At the same time, factors such as overvaluation of the Venezuelan currency and imports made directly by the government have affected the rest of the industry, particularly the production of clothing, which was down 9.5%, footwear (- 9.6%) and chemical products (- 0.89%.)

Meanwhile, some areas of the industrial sector posted a positive result: rubber and plastic products (14%); machinery and equipments (5.6%) and paper products (2.7 %.)

Link:
http://www.eluniversal.com/economia/120424/venezuelas-food-production-tumbles-69-in-january-2012

[naaman fletcher]

1. This can't be

I thought Chavez was promoting food security.