Venezuelan Government to Control Private Food Production

Every day lines to purchase basic food and hygiene products. Foto: Caridad

HAVANA TIMES — The Venezuelan Food Industry Chamber (CAVIDEA) announced Monday that the government ordered private food producers to destine a considerable part of their products to public distribution networks, a measure that could worsen shortages at markets, DPA reported.

CAVIDEA Chair Pablo Baraybar reported that the National Agricultural and Food Superintendancy (SUNAGRO) called for the distribution of anywhere from 30 to 100 percent of milk, sugar, pasta, corn flour and oil through governmental commercial networks.

He said that destining such a large part of production to State markets would bring about serious consequences for the 113,000 private sale points across the country and for citizens in general.

The government order is for private production to go to the public network of hundreds of supermarkets and food sales points (many of them State subsidized) rather than to private stores.

“We’re running into this situation: companies are having technical problems to fulfill the goals. The distribution system is enormous,” the CAVIDEA representative pointed out.

Baraybar warned that, if 70 percent of pasta production is destined to certain distribution points only, the result will be that more than 80,000 customers will be left without the product.

“Evidently, the public will be the most severely affected by this, because there’ll be less locales selling these products. People will have less locales to go to purchase these products and this will create more lineups than we have now. Distributing products as much as possible allows people to go to the sale points closest to their home without the need to travel far,” he explained.

CAVIDEA declared that the new measure will not solve the problem of consumer product shortages and underscored that local production must be bolstered in order to resupply the market.

Once the largest food producer in the country, Empresas Polar denounced that the government instructed it several times to destine the entirety of its production to public distribution networks.

“The State operates more than 230 companies in the country, it ought to be able to meet production demands. If the State has 230 companies that ought to be doing this, we at CAVIDEA will fulfill our duty of aiding in the process, not providing full coverage,” Baraybar said.

Shortages at markets worsened over the past year and has led Venezuelans to regularly stand in long lines in front of supermarkets in search of the scarce consumer products.

The Shortages are accompanied by inflation which this year could rise above 100 percent, according to private estimates.

Owing to the fall in the price of oil, the pillar of Venezuela’s economy, the country will take in half of the income it did in previous years, a situation which has significantly reduced its ability to import products.

14 thoughts on “Venezuelan Government to Control Private Food Production

  • United States government
    happen to be nothing more then a mouth peace of big money , the Koch brothers have more power than the President of the United States ,
    It is a fact of life the one who determines the policy of the United States of America is big money ,right now in the US you can’t tell the difference between a Republican or Democrat , for the simple fact both of them feed out off the claim trough ,
    right now in the United States of America Medicare cannot negotiate the price of medication with pharmaceutical companies because Congress which is paid for by big money decided that you cannot do that ,
    how about you give me an example of what is it that I was wrong at , give me a chance to respond

  • capitalist termites in the woodwork , it is an analogy that I have thought of to describe a situation in which certain capitalist whom form a Cabal to undermine the economy from the inside out , a form of conspiracy one notch before treason ,
    capitalist sociopath who all with the care about is there money , full with contempt toward the pool .

  • most of the information that I have stated on oil fracking comes from the Keiser Report on RT TV you could google it , that’s only one source that I have come across , one of the individuals whose talking about the same issue more or less on the concept that fracking is a losing proposition considering the environmental pollution caused by fracking would be Vice President Al Gore
    tell me he doesn’t know what he’s talking about ,
    I may have the percentage wrong , it keeps going back and forth with every newscast ,mainstream media rates for approval is less than 8% there’s nothing more than mouthpieces for corporate America

  • You need to stop getting your information from YouTub and do a little reading for yourself. You got absolutely everything wrong in your post. But assuming you were correct, why would it be the job of the U.S. to keep oil prices high? If the U.S. could meet all of its oil needs through domestic means, I’m all for it.

    Venezuela is a disaster because they have a bus driver who’s high school drop out in charge of the country.

  • What does that even mean? And don’t forget it’s the Capitalist US termites that buy the most VeneUelan oil. Besides, there would be no need for the U.S. to involve itself in Venwzuela, MasBurro is doing a bang-up job destroying the Venezuelan economy all on his own

  • stock market is nothing more than a gambling casino and criminal parasitic entity , they could move things right or left at any given point, nothing and everything runs on politics my friend .
    the price of oil is low now for lot of political reasons not the least of which is to put pressure on Iran and undermined Venezuela .
    fracking for oil in United States is costing them at least 10 times what they’re getting out of the ground this means corruption and political conspiracy ,

  • like I said as long as capitalist termites stay out of the woodwork things would be fine

  • – How was oil being kept hight intentionally in the past? What were the mechanisms?
    – How is oil now being manipulated to be kept artificially low?

    Oil is controlled by the oil producing states, pray tell, how is the US manipulating prices?

  • Well now that the government will control distribution there won’t be any excuse left for shortages right?

  • I’m a capitalist who has tried to get gasoline and jet fuel prices from Venezuela for the last month or so. I’m talking about millions and millions of gallons that we currently need in Nigeria. I’ve also asked them if they would be interested in building a refinery in Nigeria, but so far, we haven’t received a single reply. I am very disappointed with their cold shoulder approach to potential new business, and I could say a lot of negative things about the shortcomings of Communism, but what difference would it make?

  • Your comment is ridiculous. What is a capitalist termite? The US is on a path to energy independence. Venezuela’s problem is due to the fact that 90% of its revenues come from a commodity that have dropped in price by nearly 50%. Couple this external setback, which would shock even the best-run economy with the gross ineptitude of the Castro-blueprinted Maduro government and you have a recipe for failure. Looking to blame the US for the problems in Venezuela is just ignorant.

  • In certain historic times capitalism influence anarchy in Venezuela , documentaries that I saw in which an individual drags human body in the streets of Caracas and there was no law to stop him .
    The problems with Venezuela have to do with the capitalist termites in the woodwork , more than it have to do with the price for oil .
    Commodity price manipulation is a fact of life , capitalism will do whatever it takes to undermine socialism , there is too much money to look the other way .
    The price of oil was kept hi for a long time intentionally , and now is being brought down for political reasons .
    Venezuela is sitting on too much oil to be left alone , after all greedy American companies want to get their hands on all the natural resources they can get their hands on .

  • First Hugo (what a lovely scent) Chavez and then Nicholas Maduro became disciples of Fidel Castro and his Cuban control and power system. They set out to emulate that system and are succeeding. With the price of oil halving and with 97% of Venezuelan exports being oil, the impoverishing of the people can only accelerate and introduce Venezuelans to the benefits of Socialism. One thing Maduro can’t afford is a Presidential election and we can watch him manipulate to avoid such an event (due 2018).

  • Maduro-led 21st century socialism is a failure. Chavez set the disaster in motion and his hand-picked successor has only made Venezuela worse. After all, what were these guys thinking? Fidel Castro, the architect of the Venezuelan economy destroyed Cuba long before he went to work on Venezuela.

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