The Zimbabwefication continues

This should end well:

President Hugo Chavez is tightening state control over Venezuela’s food supply, setting quotas for food staples which are to be sold at government-imposed prices.
Venezuela’s public finances are unravelling, with oil prices at $40 a barrel, while the national budget is calculated at $60 a barrel. Inflation is running at over 30 per cent, yet with the new measures Mr Chavez is seeking to ensure that his core support, the poor, can still fill their shopping baskets with food.
“If any industry wants to ride roughshod over the consumers, with a view to getting better dividends, we are going to act,” said Carlos Osorio, the national superintendent of silos and storage. “For the government, access to food is a matter of national security.”
Production quotas and prices have now been set for cooking oil, white rice, sugar, coffee, flour, margarine, pasta, cheeses and tomato sauce.
White rice, the staple for many Venezuelans, can now only be sold at a price of 2.15 bolivares (71p) per kilo. Private companies insist that production of that kilo costs 4.41 bolivares (£1.46) and that government regulations are impossible to fulfil and companies will quickly go broke. Companies that are dedicated to rice production must ensure that 80 per cent of their efforts are dedicated to white rice. The new regulations set production percentages, as companies were rebranding their products to avoid the government controls, like flavouring the rice, as the price restrictions apply only to white rice.
Government price controls on basic goods have been in place, in various forms, since 2003. But the restrictions have forced Venezuela to become increasingly reliant on imports of these products as local farmers will not supply the selected food staples at government prices.

Nationalization appears just around the corner. But hey, history teaches us that no one is better at producing and distributing food than autocratic tyrants, right?
Damian P.

5 thoughts on “The Zimbabwefication continues

  1. philanthropist says:

    Venezuela has picked a bad time to start starving millions of their people, the world economy is in the tank.
    If Venezuelans want to starve to death that’s their perogative, but like all the other socialist basket cases they’ll want to change their minds half way through and blame someone else for their problems.
    Hopefully Venezuelans have the decency to starve to death in peace.

  2. mahmood says:

    The Dawg’s dance card is full at the moment, what with him saving the Palis from the Israelis and tossing the Afghan people to the Taliban, Hugo will have to a wait patiently before he takes his turn on “Dancing with the Dawg”.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s