Supplies seen improving ... producers plead with the public to avoid panic buying

Caracas Daily Journal (Jeremy Morgan): The government and food producers are trying to sound an encouraging note in response to the wave of shortages that's scouring shelves in supermarkets and corner stores across the country.

The Venezuelan Chamber of Dairy Industries (Cavilac) forecast that the supply of powdered milk would gradually improve. Cavilac President Roger Figueroa expressed hope that the public would not resort to panic buying.

Figueroa spoke to reporters after a meeting with Light Industries and Commerce Minister William Contreras and other senior figures in the government's economic team. The Venezuelan Food Industry Chamber (Cavidea) said plans were afoot to launch a plan to boost domestic food production.

Lorenzo Mendoza, president of Empresas Polar, arguably the biggest food processor in the country, had earlier said Venezuela imports 50 percent of the food it consumes – but at a cost. He claimed imported foodstuffs were 75 percent more expensive than those produced in the country.

Other estimates suggest that Venezuela relies on imports for as much as 60 percent of its food needs. Food distributors have repeatedly pressed the Foreign Exchange Administration Commission (Cadivi) to relax currency and price controls on food.

The government has recently shown signs of taking note, removing some basic food items from price controls, although other items including pork were recently put on the list of price-controlled products for the first time. Officials from Finance Minister Rafael Isea down insist the currency regime is here to stay.

Food shortages are seen as a potentially severe political problem for the government. The ranchers' federation (Confagan) said 35,000 tons of powdered milk were due to arrive in the country. Confagan President José Agustín Campos said this would be sufficient to meet 90 days of "normal" consumption in the country.

While powdered milk hogs the headlines at the top of the list of basic foodstuffs in short supply – and subject to sharp price rises when they are available – the list of problematic dietary items continues to grow. Pasta, rice, sugar, coffee, fruit and vegetables, chicken and meat are all subject to constant concern that they're about to dissappear off the shelves.


Agriculture and Land Minister Elías Jaua forecast that Venezuela would increase rice output to around 450,000 tons. "Every day, we're increasing the production of rice so that we can have surpluses for the strategic reserve," he claimed. "We have a plan allowing us to return to exports in 2009," he added. But food shortages are not the only problem for the very poor. A recent survey showed that 15 percent of the population on incomes of barely BsF653 a month can't even buy the "basket" of basic foods.