CARACAS (Dow Jones)--Venezuela's President Hugo Chavez announced Friday that the
government nationalized a chain of slaughterhouses that makes up the bulk of the
meat-processing capacity in the country.
"We nationalized, through an acquisition, a great chain of
(slaughterhouses) that makes up 70% of the installed capacity in Venezuela,"
Chavez said in televised remarks. "We're also acquiring milk-products company
'Los Andes' that represents 30% of the milk-processing capacity in the country,"
he said.The state's move to nationalize these businesses responds to Chavez's attempt
to bring key food-industry companies under closer state control. The president
has threatened in the past to nationalize, or forcefully acquire, any business
considered of national importance, particularly those involved in the
food-processing industry.Chavez's threats come at a time when he denounces rising prices, a problem of
late for the Andean country, which saw inflation reach 22.5% in 2007. Venezuela has suffered from food
shortages for years now, a problem that has gotten worse, with staples such as
milk and certain cuts of meat disappearing from stores.Government officials have made clear in the past their belief that
government-run businesses can better serve customers than the private sector
does. Chavez insists that privately owned companies respond to the needs of
their owners and neglect consumers."It's not just a matter of changing the ownership of this businesses,"
Chavez said during his speech. "It's a matter of changing the (economic)
model...(adopting) a socialist model."
-By Raul Gallegos; Dow Jones Newswires; +58-212-564- 1339; raul.gallegos@ dowjones. com
