The Best Part of Waking Up...... Venezuala to Nationalize Coffee Companies

[nopasties]

http://news.bbc.co.uk/2/hi/americas/8182172.stm

Venezuela seizes coffee companies


There have been inspections of privately owned food producers

The Venezuelan government has seized temporary control of the processing plants of two of the country's biggest coffee companies. Officials said the measure was designed to guarantee supply to consumers.
They said the plants, Fama de America and Cafe Madrid, would be audited for any irregularities and could face nationalisation if these were proved.
In March, the government set quotas for 12 basic foods, including coffee, to be produced at regulated prices.
Venezuelan Agriculture Minister Elias Jaua said that the government would take control of the coffee plants for three months to allow an audit.
"If at the end of the audit, we can show there has been smuggling, hoarding, disloyal and monopolistic practices, we could consider nationalising the companies," he said.
The companies had said they would be forced to close because they were running low on supplies of coffee to be processed.
Earlier this year, Venezuelan President Hugo Chavez ordered the expropriation of a rice mill, owned by a subsidiary of US food giant Cargill, accusing the company of not distributing rice at government-set prices.

Does anyone think Hugo Chavez is going to return these companies?? The guy is dangerous. Comments?

[Tiberios]

I'm certain he keeps these companies nationalized with some ridicoulos excuse. The man is crazy socialist.

[Barry Lyndon]

I love Hugo Chavez. I understand perfectly well that the Venezuelean upper class hates him for promoting solidarity, but he has done so much for the poorer people in the country. Free healthcare, better literacy, free schools and universities, etc. The Bolivarian revolution is on the right track! To nationalize the coffee companies is a step in the right direction. The capitalists who own the companies will naturally be mad, but the people work there will surely get better wages.

[Generaal Van Heutsz]

I love Hugo Chavez. I understand perfectly well that the Venezuelean upper class hates him for promoting solidarity, but he has done so much for the poorer people in the country. Free healthcare, better literacy, free schools and universities, etc. The Bolivarian revolution is on the right track! To nationalize the coffee companies is a step in the right direction. The capitalists who own the companies will naturally be mad, but the people work there will surely get better wages.

Until he runs out of people to rob, then he will find out that those people/companies were in fact the geese with the golden eggs and he slaughtered them all.



Oh well I guess he could always print Venezuela to riches, it worked for Mugabe in Zimbabwe...*

[Amry]

I don't really care either way, but I disagree with the "nationalizing coffee supply" plan because to me, coffee is not an essential good. If Chavez is doing this with wheat / rice / <insert Vanuezalan staple food>, then I will support this move.

[Generaal Van Heutsz]

I don't really care either way, but I disagree with the "nationalizing coffee supply" plan because to me, coffee is not an essential good. If Chavez is doing this with wheat / rice / <insert Vanuezalan staple food>, then I will support this move.

Why, no socialist state ever managed to run their food supply efficiently, in many socialist countries famines killed many (in fact famines in socialist countries have been the biggest killer in the 20th century and ever for that matter), what *would make Venezuela an exception?

[Amry]

Why, no socialist state ever managed to run their food supply efficiently, in many socialist countries famines killed many (in fact famines in socialist countries have been the biggest killer in the 20th century and ever for that matter), what would make Venezuela an exception?

Define "socialist". Not that I'm being snarky or anything, but clear definitions must be set down before a proper exchange of ideas can begin. After all, I would describe Venuezela and Sweden as "socialist", but you might disagree.

[Generaal Van Heutsz]

Define "socialist". Not that I'm being snarky or anything, but clear definitions must be set down before a proper exchange of ideas can begin. After all, I would describe Venuezela and Sweden as "socialist", but you might disagree.

Define "hot", I can't, I can define "cold", there is an absolute 0 but not "hot", it's the same with socialism, I can define capitalism or the free market or laissez-faire or whatever you want to call it, socialism is just a gliding scale of government intervention in peoples live.



But why is this even relevant? Clearly food production is not in the hand of the swedish government, the left it wisely to the free market (else Sweden would most likely also suffer famines)

[justicar5]

Why, no socialist state ever managed to run their food supply efficiently, in many socialist countries famines killed many (in fact famines in socialist countries have been the biggest killer in the 20th century and ever for that matter), what would make Venezuela an exception?

the biggest killer of the 19th was laisse faire and the horrors unrestricted capitalism brings (The disease ridden slums of the industrial revolution being a prime example, national armies being used as mercenaries in wars over gold and diamonds being another) Neither system is perfect.

But on topic, audit them sure, temporary nationalisation if criminality is found, but seriously give coffee production back to farmer co-operatives, and keep the multinationals out. That would work far better than a state run system.

[Amry]

and keep the multinationals out

Let's not throw the baby out with the bathwater now. As long as proper regulation and monitoring is enforced, multinationals are a boon to the common working man.

[Phier]

.

But on topic, audit them sure, temporary nationalisation if criminality is found, but seriously give coffee production back to farmer co-operatives, and keep the multinationals out. That would work far better than a state run system.

And you know this how?

[justicar5]

And you know this how?

that farmers co-ops are better than satate control? Or that multinational corporations are damaging to the nations they parasitically feed on? For the crimes of the multinationals look at the murders Shell had commited in africa as a good start, or the death squads in brazil sponsored by hotel chains to stop the beggars bothering their costumers.

[Georgy Zhukov]

If Chavez keeps nationalizing free enterprise there won't be free enterprise left.

[Pickle_mole]

If Chavez keeps nationalizing free enterprise there won't be free ANY enterprise left.

[Angrychris]

coffee is an essential good atleast in the United States and the reason why famine was a huge problem in developing socialist (communist) countries is because of no industrial support to maintain food/good up keep for the people.

[antares24]

Well i just hope that my favourite brand of coffee didn't import it from Venezuela, i could die without that stuff

I love Hugo Chavez. I understand perfectly well that the Venezuelean upper class hates him for promoting solidarity, but he has done so much for the poorer people in the country. Free healthcare, better literacy, free schools and universities, etc. The Bolivarian revolution is on the right track! To nationalize the coffee companies is a step in the right direction. The capitalists who own the companies will naturally be mad, but the people work there will surely get better wages.

buddy the only reason Chavez has been able to give money to the poorer people is thanks to Venezuela oil, and it's production has dwindled after Chavez nationalization. Not to mention that with a lower oil price he's struggling to pay for that welfare. As a European i'm in favour of a welfare state that partially redistribute a country wealth towards the less lucky, but a welfare state based on volatile oil revenues and little else is pretty stupid.

[Barry Lyndon]

Well i just hope that my favourite brand of coffee didn't import it from Venezuela, i could die without that stuff



buddy the only reason Chavez has been able to give money to the poorer people is thanks to Venezuela oil, and it's production has dwindled after Chavez nationalization. Not to mention that with a lower oil price he's struggling to pay for that welfare. As a European i'm in favour of a welfare state that partially redistribute a country wealth towards the less lucky, but a welfare state based on volatile oil revenues and little else is pretty stupid.

Untrue. Before Chavez first run in 1998 Venezuela was an "Oil Republic". The only thing the ruling class cared about producing was oil, oil and more oil. Chavez has changed all that, now they are producing in a great variety of fields to make to economy more stabile. Check the graphs on this site for the truth about the non-oil GDP: http://www.venezuelanalysis.com/analysis/2397

[antares24]

Untrue. Before Chavez first run in 1998 Venezuela was an "Oil Republic". The only thing the ruling class cared about producing was oil, oil and more oil. Chavez has changed all that, now they are producing in a great variety of fields to make to economy more stabile. Check the graphs on this site for the truth about the non-oil GDP: http://www.venezuelanalysis.com/analysis/2397

untrue? have you read what i wrote? I agree that before Chavez Venezuela sure wasn't a shining example of a country, and that it was mostly ruled in a way that benefitted only part of the population, but all that i said, about Venezuela smaller oil production, and the fact that Chavez welfare for the poor programs are entirely payed for with oil money is true. Oh and i may also add that Venezuela is also suffering from a huge brain drain thanks to Chavez policies, with most of the middle and upper class, the ones with higher educations, emigrating. That's pretty big problem for a country.

[Erik]

As a European i'm in favour of a welfare state that partially redistribute a country wealth towards the less lucky, but a welfare state based on volatile oil revenues and little else is pretty stupid.

I agree.
So nationalizing the coffee industry makes sense.

Until now, foreign companies made huge profits with coffee but local coffee-bean farmers saw almost nothing of the profits.
That's why coffee was the first industry to be targeted by "fair trade".

I really can't say I feel sorry for the coffee companies who (assuming Chavez won't give back their factories) are essentially robbed of their assets.
When you exploit people you always run a risk of it backfiring.

If you can just give healthcare, why can't you give coffee?

What a dumb post

The point is to sell the coffee in order to buy healthcare.

[Aetius]

Will this affect the price of Coffee in America.

If not, I don't care.

EDIT: looks like it will, damn Hugo.