food prices
parole
The relaxation of control measures demonstrate the failure of regulation
Katie Hernandez
khernandez@el-nacional.com
designed price regulation by the Government, held for more than 5 years, which accelerated freezing scheme shortage and loss of profitability.
Many industries reported problems in their cost structures, because the amounts specified in the Official Gazette, for more than 30 foods, were outdated and must assume high costs could not be transferred to the consumer.
Estimates of the increase in domestic and imported raw materials, high prices of the packages, the cost of transport, distribution and marketing and the annual rise in wages had been overlooked in the early years of regulation when approving increases.
Now the government gives a shift to price control and agree to fix prices at the light and force companies to sell below actual costs, is a risk that can not be run.
Since 2007 about 20 foods have been freed from control under the condition that they comply with certain bands suggested prices.
progressive policy of excluding products regulation, not quite a release. The Government determines the output of the items to processing companies maintain cost structures that allow foods to be sold at higher prices in the retail market.
Food Minister Felix Osorio, argues that there is a release, because we constantly evaluate whether the items were no longer regulated have not increased prices excessively.
"When food is released it is enabling companies to increase production of this article, but are warned that they can not kill or reduce the production of presentations that are held with regulated prices. Therefore it is conditional release, "said Osorio.
said that in case of irregularities determine both the percentage of production and market prices, the Government reserves the power to return to regular food.
explained that in 2007 it was decided to exclude from the control eggs and agreed a price band between 12 and 14 Bs for carton of 30 units. However, in the informal sector and in warehouses of the municipal markets, the product exceeds 21 Bs.
"That can not be, we have warned the poultry sector if not lower these prices, we will control this product," said Osorio. He said
expressed that the poultry industries that maintain low prices and that retailers and marketers are those who put these amounts. Minister for the industry is as responsible as the trader, he urged not to be released for those distributors.
"Not only is producing eggs, but that food reaches the consumer at a fair price and avoid being sold in the informal chain, companies can not be irresponsible in that regard," he said.
Last week the government excluded from regulation as margarine, mayonnaise, tomato sauce and chicken.
This measure however does not mean that companies can raise prices of these products freely. Although not published in the Official Gazette, the Government agreed a price band for each of these foods.
The mayonnaise was covered in 4 Bs presenting 445 grams, may be sold between 4.56 and 4.80 bolivar, which means an increase of 20%. The half-kilo of margarine was controlled Bs 2.76, you can upload up to 45% and sold at retail in Bs 4.01, and the tomato sauce bottle of 397 grams which was set at 3.92 bolivars , companies can increase to a maximum of 23% to reach 4.81 Bs.
"With sectors, we set a price band that they should use so that there is no speculation. Our inspectors Indepabis and the Superintendencia de Silos, will be vigilant that this situation is met. It also has positive effects, in the case of speculation, makes lower prices, "said Trade Minister Richard Canan.
He acknowledged that if not checked prices may generate a problem of falling food production. "If a food is below the fair cost of production, it will not be possible to guarantee the continuity of production. That would be totally disastrous, worse, a company, an industry can not produce food because prices are below cost of production " admitted Minister of Commerce, Richard Canan, in an interview on VTV.
The list of items that have come out of regulation in recent years, including full length milk and skim milk, eggs, fresh sardines, pork leg, smoked pork chop, beans, lentils, peas, bologna, oats, salt, wheat flour, cuts of meat to grill (strip loins and rump), canned tuna, fresh tuna and mackerel.
is hoped that others such as soy milk, infant formulas and sardines also out of control and increase between 21% and 37%. Agribusiness
a market still dominated
by the private sector
The desire of the Government to intervene in the production of staple foods, has shown in making rice processing companies, pre-cooked corn flour, canned seafood, pasteurization, refrigeration and livestock, fruit , coffee roasters, as well as the creation of social production companies in this area. The government also has oil and margarine processing as Diana.
addition to the marketing network and Mercal Pdval with about 30% of the market for the sale of commodities, the state's power sector increases with the negotiation to acquire the 6 hypermarkets Success, and 80% of the business of 35 supermarkets and 8 EACH distribution centers the company Cativen the French group Casino.
With all that, the staple food production is still mostly in private enterprise.
in precooked corn flour, private companies contribute 72.15% of the market with 603,963 tons, while the Government with some factories operated including the banker Ricardo Fernandez, handles around 233,037 tonnes, a sector that year produced an estimated 837,000 tons.
In the case of oil, the Executive purchases made by CASA to Mercal and Diana, a subsidiary of PDVSA, handles 137,509 tonnes product, about 44.5% of the market, while private sold 172,172 tons of a total of 309,681 tons it produced in 2009. Also
market for rice, sugar, milk, pasta, chicken, beef, tomato sauce, margarine, canned and other foods depends on the production of private industries that generate thousands of jobs.
In the coffee with the expropriation of Fame of America and negotiation to acquire 80% of Café Madrid, it is estimated that the Government can get a handle over 70% of the sector.
parole
The relaxation of control measures demonstrate the failure of regulation
Katie Hernandez
khernandez@el-nacional.com
designed price regulation by the Government, held for more than 5 years, which accelerated freezing scheme shortage and loss of profitability.
Many industries reported problems in their cost structures, because the amounts specified in the Official Gazette, for more than 30 foods, were outdated and must assume high costs could not be transferred to the consumer.
Estimates of the increase in domestic and imported raw materials, high prices of the packages, the cost of transport, distribution and marketing and the annual rise in wages had been overlooked in the early years of regulation when approving increases.
Now the government gives a shift to price control and agree to fix prices at the light and force companies to sell below actual costs, is a risk that can not be run.
Since 2007 about 20 foods have been freed from control under the condition that they comply with certain bands suggested prices.
progressive policy of excluding products regulation, not quite a release. The Government determines the output of the items to processing companies maintain cost structures that allow foods to be sold at higher prices in the retail market.
Food Minister Felix Osorio, argues that there is a release, because we constantly evaluate whether the items were no longer regulated have not increased prices excessively.
"When food is released it is enabling companies to increase production of this article, but are warned that they can not kill or reduce the production of presentations that are held with regulated prices. Therefore it is conditional release, "said Osorio.
said that in case of irregularities determine both the percentage of production and market prices, the Government reserves the power to return to regular food.
explained that in 2007 it was decided to exclude from the control eggs and agreed a price band between 12 and 14 Bs for carton of 30 units. However, in the informal sector and in warehouses of the municipal markets, the product exceeds 21 Bs.
"That can not be, we have warned the poultry sector if not lower these prices, we will control this product," said Osorio. He said
expressed that the poultry industries that maintain low prices and that retailers and marketers are those who put these amounts. Minister for the industry is as responsible as the trader, he urged not to be released for those distributors.
"Not only is producing eggs, but that food reaches the consumer at a fair price and avoid being sold in the informal chain, companies can not be irresponsible in that regard," he said.
Last week the government excluded from regulation as margarine, mayonnaise, tomato sauce and chicken.
This measure however does not mean that companies can raise prices of these products freely. Although not published in the Official Gazette, the Government agreed a price band for each of these foods.
The mayonnaise was covered in 4 Bs presenting 445 grams, may be sold between 4.56 and 4.80 bolivar, which means an increase of 20%. The half-kilo of margarine was controlled Bs 2.76, you can upload up to 45% and sold at retail in Bs 4.01, and the tomato sauce bottle of 397 grams which was set at 3.92 bolivars , companies can increase to a maximum of 23% to reach 4.81 Bs.
"With sectors, we set a price band that they should use so that there is no speculation. Our inspectors Indepabis and the Superintendencia de Silos, will be vigilant that this situation is met. It also has positive effects, in the case of speculation, makes lower prices, "said Trade Minister Richard Canan.
He acknowledged that if not checked prices may generate a problem of falling food production. "If a food is below the fair cost of production, it will not be possible to guarantee the continuity of production. That would be totally disastrous, worse, a company, an industry can not produce food because prices are below cost of production " admitted Minister of Commerce, Richard Canan, in an interview on VTV.
The list of items that have come out of regulation in recent years, including full length milk and skim milk, eggs, fresh sardines, pork leg, smoked pork chop, beans, lentils, peas, bologna, oats, salt, wheat flour, cuts of meat to grill (strip loins and rump), canned tuna, fresh tuna and mackerel.
is hoped that others such as soy milk, infant formulas and sardines also out of control and increase between 21% and 37%. Agribusiness
a market still dominated
by the private sector
The desire of the Government to intervene in the production of staple foods, has shown in making rice processing companies, pre-cooked corn flour, canned seafood, pasteurization, refrigeration and livestock, fruit , coffee roasters, as well as the creation of social production companies in this area. The government also has oil and margarine processing as Diana.
addition to the marketing network and Mercal Pdval with about 30% of the market for the sale of commodities, the state's power sector increases with the negotiation to acquire the 6 hypermarkets Success, and 80% of the business of 35 supermarkets and 8 EACH distribution centers the company Cativen the French group Casino.
With all that, the staple food production is still mostly in private enterprise.
in precooked corn flour, private companies contribute 72.15% of the market with 603,963 tons, while the Government with some factories operated including the banker Ricardo Fernandez, handles around 233,037 tonnes, a sector that year produced an estimated 837,000 tons.
In the case of oil, the Executive purchases made by CASA to Mercal and Diana, a subsidiary of PDVSA, handles 137,509 tonnes product, about 44.5% of the market, while private sold 172,172 tons of a total of 309,681 tons it produced in 2009. Also
market for rice, sugar, milk, pasta, chicken, beef, tomato sauce, margarine, canned and other foods depends on the production of private industries that generate thousands of jobs.
In the coffee with the expropriation of Fame of America and negotiation to acquire 80% of Café Madrid, it is estimated that the Government can get a handle over 70% of the sector.
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