Tuesday, September 22, 2009

Venezuela: Venezuela ready to nationalize coffee companies

The Minister of Commerce, Eduardo Saman, announced that the government is considering nationalizing two major coffee companies, “Café Fama de América” and “Café Madrid.” The Minister indicated that when the current temporary occupation expires, he will recommend proceeding with nationalization.

The occupation of Fama de America and Madrid Coffee plants, which represent between 70 and 80 percent of the Venezuelan coffee market, took place on August 3, 2009 and will expire on November 1, 2009.

The government also announced that coffee would be exported to Russia, Belarus, and Arab countries at the end of 2009.

These exports will take place even though Venezuela would depend on imported green coffee for processing. The Minister reported that a mission from Belarus will be visiting the state of Táchira to see the coffee plant, evaluate production and start the export process. He also added that there is a chance for Nicaragua to sell their coffee production through Venezuela. This type of commercial agreement will help eradicate the Venezuelan coffee extraction to Colombia.

For the Minister this new proposal of nationalization will ensure Venezuela will become an exporting power.

Source: U.S. Government

Published by Mike Hitchen i On Global Trends, world news, analysis, opinion
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