[Marxism] Chavez seizes Cargill unit, threatens to nationalise Polar, the country's largest private sector employer

[Fred Fuentes <fred.fuentes@xxxxxxxxx>]

Chavez seizes Cargill Venezuela unit
Wed Mar 4, 2009 7:54pm EST

By Patricia Rondon

CARACAS (Reuters) - President Hugo Chavez seized a local unit of
American food giant Cargill on Wednesday and threatened to nationalize
Venezuela's largest private company, Polar, as he demanded industry
produce cheaper rice.

The clash with the food companies came less than three weeks after
Chavez, a Cuba ally who has nationalized swaths of the Venezuelan
economy, won a referendum on allowing him to run for reelection.

"I warn you this revolution means business," said Chavez.

The anti-U.S. president is popular among the poor for pressuring
companies to produce cheap goods and for government programs that
provide subsidized food in city slums.

In recent days Chavez has seized some Polar rice mills after accusing
the food industry of skirting his price controls and failing to
produce enough cheap rice.

U.S. company Cargill, which operates one rice mill in Venezuela, said
earlier in the week it was expecting a visit from officials even
though it does not produce the type of rice that is at the center of
the dispute.

Chavez said he ordered the takeover because Cargill -- the largest
privately owned U.S. company -- does not produce basic rice that is
subject to government price controls.

"Prepare the decree, we are going to expropriate Cargill. We are not
going to tolerate this," Chavez said.

It was not clear if Cargill's other Venezuelan food units would be
affected. Cargill Venezuela did not answer calls to their offices.

Polar, which is the country's largest private sector employer and
produces and distributes everything from beer to flour, has vowed to
take legal action over the rice mill takeovers.

(Writing by Saul Hudson, Editing by Frank Jack Daniel)

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