Government counters agribusiness offensive to undermine economic policies

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, May 08, 2003 By: Patrick J. O'Donoghue

The government has launched a counter-attack on Venezuelan ranchers, agricultural producers and agribusiness leaders, accusing them of deliberately creating an artificial scarcity of products to undermine price controls and exchange rates.  The attack comes after the discovery of 100,000 kilos of chicken allegedly hoarded at the Souto Brothers industry in Bejuma (Carabobo). 

Industry Minister, Victor Alvarez says the agribusiness offensive is part of a plan to blow a hole in the government's economic policies. "There is no reason from an economical point of view that justifies outbreaks of speculation or scarcities." 

Alvarez claims that agribusiness sector is fishing for too much profit but has promised to review customer prices and alleged low profits.

However, newspaper reports indicate that people are finding it difficult to obtain maize bread powder (harina pan), white cheese, chicken and other basic products at local  markets and supermarkets. 

Federation of Chambers of Industry & Commerce (Fedecamaras) deputy president, Albis Munoz says the government wants to eliminate the private sector and its policies are distorting the market. 

Venmaiz executive president, Gisela Serrano argues that the industry has enough to cover demand till  September and blames the distortion on  scarcity. "The price of regulated maize bread powder is far too low  ... it's being produced at a loss ... industrialists are covering the surplus demand generated by the low price compared to other basic foods. 

Serrano says the product costs double in Colombia and what should go to the domestic market is being smuggled into Colombia ... "then there is the problem of getting hold of government dollars!"