things are getting interesting in venezuela
Chávez Targets Cargill Mills in Price-Control Move
By RAUL GALLEGOS in Caracas, JOSE DE CORDOBA in Mexico City and JOEL MILLMAN in Phoenix
CARACAS - President Hugo Chávez on Wednesday ordered the expropriation of the local rice operations of U.S. grain giant Cargill Inc., and threatened to take over beer and food manufacturer Polar, the country's largest private company.
Mr. Chávez's move comes amid a growing battle between his populist government and private food companies, who are straining under strict price controls aimed at slowing down high inflation set off by Mr. Chávez's non-stop spending. The controls have led to shortages of staples like milk and rice. Mr. Chávez blames the companies; the companies say the prices are set too low to make a profit.
Hugo Chávez
Earlier this week, Mr. Chávez ordered army units to take over other rice mills belonging to Venezuelan companies whom the president accuses of causing shortages of rice. He also imposed new regulations forcing producers to devote at least 70% of their production to price-regulated products, including certain types of sugar, milk and vegetable oil.
More here:
online.wsj.com/article/SB123621659357535821.html
By RAUL GALLEGOS in Caracas, JOSE DE CORDOBA in Mexico City and JOEL MILLMAN in Phoenix
CARACAS - President Hugo Chávez on Wednesday ordered the expropriation of the local rice operations of U.S. grain giant Cargill Inc., and threatened to take over beer and food manufacturer Polar, the country's largest private company.
Mr. Chávez's move comes amid a growing battle between his populist government and private food companies, who are straining under strict price controls aimed at slowing down high inflation set off by Mr. Chávez's non-stop spending. The controls have led to shortages of staples like milk and rice. Mr. Chávez blames the companies; the companies say the prices are set too low to make a profit.
Hugo Chávez
Earlier this week, Mr. Chávez ordered army units to take over other rice mills belonging to Venezuelan companies whom the president accuses of causing shortages of rice. He also imposed new regulations forcing producers to devote at least 70% of their production to price-regulated products, including certain types of sugar, milk and vegetable oil.
More here:
online.wsj.com/article/SB123621659357535821.html