Coffee roasters threatened.

Trade Minister Eduardo Saman recommended that President Hugo Chavez nationalize two already-occupied coffee companies to ensure supplies and boost exports, reports Bloomberg (Sept. 18, 2009):

Venezuela seized the roasting plants owned by Fama de America and Cafe de Madrid, on Aug. 3 as the government opened investigations into possible hoarding and price speculation. Saman said workers at the plants asked the government to complete a takeover. The two companies have a combined 80% share of Venezuela's coffee market. "This is the only way to end the problems we have every year with hoarding of coffee," Saman said;

Chavez has tightened regulation of private food makers to confront periodic shortages and the evasion of price controls on basic goods such as rice, pasta, sugar and coffee. The government returned pasta and rice plants to US food maker Cargill Inc. and Empresas Polar SA, Venezuela's largest closely- held company, after temporary seizures earlier this year. Government will seek to boost coffee exports to Russia, Belarus and the Middle East by increasing production at the roasters, Saman said;

Chavez, who often drinks as many as 10 small cups of coffee during speeches, is expanding state control over "strategic" industries, including metals, energy and basic materials. He blames manipulation by private companies for the surge in consumer prices, resulting in the highest inflation rate in 78 economies tracked by Bloomberg. Companies say that Chavez's price controls force them to operate at a loss. Since winning a referendum in February that abolished presidential term limits, Chavez nationalized the petrochemical industry and metals companies. He has also threatened to close the most critical television channel, Globovision. Government shut 32 radio stations and two television channels on July 31 as part of a review of some 285 broadcasting licenses that may be revoked.