Venezuela seizes U.S.-owned food plant.

Venezuela temporarily seized a pasta-making plant Friday belonging to U.S.-based food giant Cargill, citing a production quota dispute.

Rafael Coronado, Venezuela's deputy minister for food, announced the takeover live on the state-run Venezolana de Television channel. He said the plant did not meet production levels for pasta sold at lower, government-mandated prices.

An inspection of the plant Thursday found that 41 percent of its pasta met the government-established level, Coronado said at a news conference in front of the food plant. Fifty-nine percent was "out of regulation," he said.

The Venezuelan government will take over the plant for 90 days, he said, and then will determine what steps to take next.

Source

Well I love Venezuela.

The first country to kick the habit of foreign oil, and one of the only countries in the world whose government seems to enforce it's laws whenever possible with companies who outsource as to cheat.

I love what they are doing here, some might disagree but I think this is the responsiblity of the government to make sure that products being produced in one's country should meet the standards and regulations set by that country.

They can call him a leftist all they want, I think he's just a genuine human.

~Keeper


Edit To Add Source


[edit on 5/16/2009 by tothetenthpower]

I certainly won't be weeping for Cargill. Pretty crappy company from what I've read about them.

This also happened about two months ago with a Cargill rice plant. Venezuela had instituted price controls on white rice. So, Cargill dyed their white rice yellow and ignored the government's mandates.

They're huge advocates of "free trade" and decriers "governmental protectionism". Nice guys.

Well the Cargill group is one of the most corrupt companies on the planet. I am happy that a country like Venezuela, who in most cases would take cues from bigger countries like the US out of fear of protectionism or trade wars, can actually stand up and demand that companies who operate in their border follow the rules.

It's part of business, no shortcuts, the consumer ends up with the short stick.

~Keeper

An inspection of the plant Thursday found that 41 percent of its pasta met the government-established level, Coronado said at a news conference in front of the food plant. Fifty-nine percent was "out of regulation," he said.

SOURCE

Am I the only one not getting it? What exactly does "out of regulation" mean. I mean come on we're talking about pasta. Is the article referring to quota, Size, ingredients being used. I felt the article was lacking information

The only thing that was "out of regulation" was the production levels for the cheap low quality pasta that they are required to sell to Venezuelans for cheaper prices than what they sell elsewhere. They were making too much higher quality pasta, in other words.

[edit on 16/5/2009 by Iamonlyhuman]

Thank goodness I don't live in Venezuela. Imagine the gov't telling you how much of what kind of pasta you could make.

I thought that was determined by your customers?

That's socialism for ya!

WOW....Im not sure who I should be rooting for on this one.


On one hand, Cargill is slime....and on the other, Commie takeovers suck.


Oi....A pox on BOTH thier houses I say!

Unfortunately darling it has nothing to do with the quality or quantity of the product made. It has more to do with the need of the government to refill it's coffer's for the military there. They have done this repeatedly with many other companies there also, not just Cargill.
Several countries do this sort of thing when they need something and they don't always hit up foreign countries companies either they will hit up their own people's companies too.It really isn't anything new on the scene of international business, just a problem you have to deal with when you run a company in a country where you don't reside.( that is what all the insurance is for )

Hmm, some folks are acting surprised. This is what socialist governments do. They take control away from others and tell them how to run their businesses.
Kinda like they are doing in the good old U S of A lately. Only here they are doing it with unbacked dollars and calling it bailouts.
Socialism is stylish everywhere nowadays.

I was always under the impression countries sovereignty comes before any corporation (US owned or else) - and I would suggest if you are a foreign company you really have nothing to complain about according to your own country laws.

Sounds like some anti Venezuela propaganda to soften the public (that is unaware of the reason the black government does these things) for something further down the track.

Why don't companies thank their lucky stars they are even allowed in a foreign country to make money from them.

Venezuela and its people seem A-O-K to me, as a foreigner looking in.

wZn

[edit on 16-5-2009 by watchZEITGEISTnow]

reply to post by watchZEITGEISTnow

Originally posted by watchZEITGEISTnow
I was always under the impression countries sovereignty comes before any corporation (US owned or else) - and I would suggest if you are a foreign company you really have nothing to complain about according to your own country laws.

I don't see how this has anything to do with sovereignty. Countries have the right to set their own rules.

However, when foreign corps come there to do business, they sign treaties and pacts (contracts) outlining the rules. I doubt very much that Cargill signed a paper agreeing to allow their socialization after they had invested in their plants.

Sounds like some anti Venezuela propaganda to soften the public (that is unaware of the reason the black government does these things) for something further down the track.

Not really. This is Chavez' modus operandi. He has already nationalized the oilcos and the media.

Why don't companies thank their lucky stars they are even allowed in a foreign country to make money from them.

Oh thank you, Chavez, for allowing us to invest billions into your raggedy country so that you can steal it from us. Thank you thank you!

Nationalization is the second worst form of blatant corrupt thievery. Slavery is the worst, and Venezuela isn't far away from that. And that is why Venezuela has such a huge drain of brain power as professionals leave the country in droves.

reply to post by jsobecky


So you've not yet read John Perkins - Confessions Of An Economic Hitman ?

To think corporations have their foreign investments for the advantage of that country is not only an outdated thought process - it is a lie.

To think a foreign company has 'power' over that country is diabolical.

The good thing about the world economic collapse is that it will purge these destructive, environmental hating, service to self under the guise of "economy" based necessity corporations into oblivion. Then, we may start a process of rebuilding without fat cats and their heinous ways.

To think a system based on living within your own country and within nature of that country will be fantastic - and you as well as I are going to have to shift our daily luxuries into more caring environments.

Venezuela should stand up to these careless dictative corporations that many of the western worlds soldiers are fighting and dying for under the cloak of "democracy". Well good for them.

It's not about the USA verses Venezuela. Don't make it sound that way. "They" would want you to think it is.

wZn

reply to post by watchZEITGEISTnow

Originally posted by watchZEITGEISTnow
To think corporations have their foreign investments for the advantage of that country is not only an outdated thought process - it is a lie.

Of course not. That is a naive, ridiculous notion, and one that would get the Board of Directors and Chief Exec's of a company fired immediately.

Corps work for the benefit of their shareholders (as they should) - whoever told you different lied to you.

To think a foreign company has 'power' over that country is diabolical.

Where did you get that notion? I never mentioned it at all.

But, some multinationals do run some countries, like it or not.

The good thing about the world economic collapse is that it will purge these destructive, environmental hating, service to self under the guise of "economy" based necessity corporations into oblivion. Then, we may start a process of rebuilding without fat cats and their heinous ways.

Right. Sure...

To think a system based on living within your own country and within nature of that country will be fantastic - and you as well as I are going to have to shift our daily luxuries into more caring environments.

You're kidding, right?

You've just condemned over half the world to starvation with that theory.

Originally posted by highfreq
Am I the only one not getting it? What exactly does "out of regulation" mean. I mean come on we're talking about pasta. Is the article referring to quota, Size, ingredients being used. I felt the article was lacking information

Chavez has set a percentage quota of production for certain goods that have to sell below what the producers can produce it for, thereby making the producers take a loss on it. This is because Venezuela has become an almost 100% entitlement mentality country, and Venezuela can't afford to feed all their citizens at fair market price.

Here's a good article on what Chavez is doing because he can't sustain his failing country's economy.

reply to post by jsobecky


The next thing you know their government will be telling CEO's how much they can make, or telling companies how to do business.

Oh, nevermind.

reply to post by jsobecky


When 99% of the worlds wealth is governed by the 1% something ain't right.

I don't know if you believe your country (whatever that may be) to be the be all and end all of the global world we all live in, but most of the worlds population do live below the 'western standard' of living.

These peoples have managed in some poor conditions - without a corporate backing, so it can be done (and has been since recorded histories), and will be done when money will be worthless. This is why countries that have been self sufficient and rely on their own trade to exchange goods for services and vice versa.

Do you deny corporations take advantage of poor countries situations - most of the central Americas have been abused this way - as has Africa, and the Middle East.

I find it hard that you'd stick up for a corporation (faceless) that sees you and I as nothing more than a potential slave. If you have interests vested in these corporations, you should think long and hard what you are technically supporting by doing business with them.

Again I ask if you have read or even watched John Perkins who thoroughly details these corporate crimes throughout his term dealing in such affairs?

wZn