US food giant Cargill is looking for talks with the Venezuelan government after one of the company’s rice plants was expropriated by the authorities.
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Venezuela’s government, headed by President Hugo Chavez, has seized the rice mill amid reported claims from the authorities that privately-owned food makers should be producing cheaper food.
According to a Reuters report, Venezuela’s Agriculture Minister Elias Jaua criticised Cargill for failing to meet government regulations.
“The state will not accept a violation of the law, it will not accept disobedience,” Jaua told reporters. “We did what the law requires us to do.”
For its part, Cargill told just-food that the mill had produced parboiled rice for seven years.
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By GlobalData“Cargill is committed to the production of food in Venezuela that complies with all laws and regulations,” the company said. “Cargill expects the opportunity to clarify the situation with the government and is respectful of the Venezuelan government decision.”
The company employs around 2,000 people at 20 sites in Venezuela, including 13 manufacturing facilities.
