Venezuela Increases Control of Food Production

[Andronex]

Source: Venezuelanalysis.com

Increases Control of Food Production to Guarantee Access

To guarantee access to essential foods amidst price inflation and supply shortages in some items, the Venezuelan government recently nationalized a major flour producer, granted low-interest credits to small and medium-sized producers, opened new subsidized food markets, sanctioned price speculators and hoarders, and is in the process of reforming the Land Law.

After months of investigations of the flour and tortilla producer Monaca for allegedly decreasing production during a time of national shortage, government officials announced that the state will take over all of the company’s operations and facilities.

The state will acquire “a broad structure for the processing, marketing, and distribution” of cereals and related products such as wheat and corn flour, pasta, rice, and oatmeal. This will be controlled by the state-owned Venezuelan Agricultural Corporation (CVA) with participation of worker unions, cooperatives, and community councils, according to the nationalization order.

Read more: http://venezuelanalysis.com/news/5375

[Taverner]

1. This is good socialism

[skeptical cynic]

2. "...sanctioned price speculators and hoarders..."

Putting the needs of the many before the enrichment of the few.

How anti-American.

[naaman fletcher]

8. In theory..

We will see how it works out. I predict it will work out the way that it has in every other country it has been tried, but we will see.

[friendly_iconoclast]

3. When will the chocolate ration be increased?

[Andronex]

4. Private Property and Socialism

During the credit-granting ceremony on Wednesday, President Chavez said private enterprise is welcome in the “21st Century Socialism” heralded by his government, as long as it serves a social purpose and is not monopolistic.

Chavez said his administration, in line with the national constitution, accommodates “private property, whenever it serves to produce goods and services that satisfy needs and its surplus does not fall into the hands of a monopoly or contribute to the concentration of capital in few hands, exploiting consumers and workers.”

“If you treat workers like human beings and pay them what you should, and your product is the result of your work and that of the workers and it does not enter into the capitalist distribution networks that make it ten times more expensive, those private enterprises can exist in socialism,” said Chavez.

[proudohioan]

5. Thank you; how refreshing that is! n/t

[ChangoLoa]

7. is that "proudhonian"? nt

[ChangoLoa]

9. ok, Ohio... LOL nt

[ChangoLoa]

6. 47 butchers have already been arrested and 48 liquor shops shut down for "speculation".

"Sólo 48 permisos de licores se revocaron en Caracas" aseguró Rodríguez

http://www.ultimasnoticias.com.ve/capriles/cadena-global/detalle.aspx?idart=3091538&idcat=56750&tipo=2


Gobierno ha detenido a 47 carniceros por especulación

http://noticias.eluniversal.com/2010/04/29/eco_ava_gobierno-ha-detenido_29A3828971.shtml

[Igel]

10. One has to wonder.

Other reports put things in a rather different light. Not negative, just not "rah-rah, let's hear it for cheap food for the masses!"

http://www.newser.com/article/d9fm7o982/venezuela-expropriates-food-company-monaca-majority-owned-by-mexicos-gruma.html
Option 1: More dealing with a political opponent accused of fiscal "improprieties."
Option 2: Locally produced corn flour.

Why would anybody care about (2) as a possible reason?

http://venezuelanalysis.com/news/4505
The government's gone into the corn flour business. One could speculate (although speculation is absolutely ruled out) that Monaca had an established supplier or had a good price for the corn flour it needed and didn't want the government supply. In this case it would mean the government finds it necessary to provide a demand for what its (state-run) business produces. Easier to take over an existing facility than actually build your own or incentivize private competition.

Perhaps he's just rolling up his own private NEP.

But there's option (3): That Venezuela's self-styled juche (whenever advantageous) demands kicking out a large Mexican firm.

All three have a political payoff.