Food Producers, and Now Growers, Finding it Difficult to Function with Price Controls

Growers, manufacturers and distributors continue to be challenged by the Chavez administration's policies towards the food and drink industry. In the latest twist, the Chavez government has begun to seize large rural farms and ranches that it claims are not sufficiently productive. Price controls at the retail level, as well as price guarantees for primary producers and growers, are significantly compromising profit margins for food producers in many sectors, endangering their ability to produce. The first empty shelves appeared in the country's grocery stores in January 2006.

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