Venezuelan government seizes Cargill pasta plant
May 15, 2009
by Bakingbusiness Staff
CARACAS, VENEZUELA — The government of Venezuelan President Hugo Chavez on Friday seized temporary control of a Venezuelan pasta processing plant owned by Minneapolis-based Cargill, alleging the company broke regulations on food items subject to price controls, according to the Associated Press. The move comes a little more than two months after the government seized a rice processing plant operated by Cargill.
Venezuelan Deputy Food Minister Rafael Coronado said "there was a clear transgression of the law," referring to legislation that aims to control inflation by requiring companies to ensure that 70% to 95% of their products are the types that fall under the government-imposed price controls.
Mr. Coronado said the government will maintain control of Cargill’s pasta plant for a 90-day period.
Cargill, which operates 13 food processing plants in Venezuela, declined to comment on the situation.