Venezuela Imports 74,000 Tons Of Food To Avert Crisis

Vittorio Hernandez - AHN News Writer

Caracas, Venezuela (AHN) - To avert a food crisis facing Venezuela, the Latin American nation imported 74,000 tons of food items. The state is tapping the government-owned oil corporation Petroleos de Venezuela to oversee the distribution of the food import across Venezuela.

Oil and Energy Minister Rafael Ramirez formed a subsidiary, the PDVSA Alimentos, which would be in charge of distributing the imported food, topped by powdered milk. Ramirez said 30,000 tons will be distributed by PDVSA Alimentos, 24,000 tons through the Makro supermarket chain and 16,000 tons dispersed through municipal markets.

Because of powdered milk shortage, sales is limited to 4.4 pounds (2 kilograms) per person. Venezuelan President Hugo Chavez, in his Sunday radio broadcast, promised more milk supply in the coming months. The bigger portion of Venezuela's milk requirements is sourced overseas, while 60 percent of its food is imported.

Aside from milk, PDVAL is also bringing in from abroad beef, canned tuna, wheat, soy and sunflower oil, margarine, mayonnaise and tomato paste.

Venezuela had been experiencing food shortages since 2003, a result of the imposition of price and currency controls by Chavez. He blames hoarders and speculators for the food scarcity. A survey in early 2007 by pollster Datanalisis showed nine basic food items are difficult to find, namely sugar, beef, powdered milk, chicken, eggs, rice, corn flour, sardines and beans.

Noel Alvarez, president of Consecomercio, Venezuela's largest business chamber, said the food shortage problem will continue unless the government removes policies that stifles production and hampers entrepreneurship. Alvarez cited the February presidential decree that gave the state the power to take over groceries and other food distributors caught hoarding food items or selling beyond price ceilings. He explained the decree led some storeowners to decrease their inventories.