Identifier
Created
Classification
Origin
08CARACAS1620
2008-11-24 12:38:00
CONFIDENTIAL
Embassy Caracas
Cable title:
LEADING VENEZUELAN FOOD PROCESSING COMPANY
how-toP 241238Z NOV 08 FM AMEMBASSY CARACAS TO SECSTATE WASHDC PRIORITY 2180
C O N F I D E N T I A L CARACAS 001620
SECSTATE PASS AGRICULTURE ELECTRONICALLY
E.O. 12958: DECL: 11/20/2023
TAGS: ECON EAGR PGOV ETRD VE
SUBJECT: LEADING VENEZUELAN FOOD PROCESSING COMPANY
PRESSURED BY THE GOVERNMENT
Classified By: Randall Hager, Agricultural AttachQ, for reasons 1.4 (b)
and (d)
C O N F I D E N T I A L CARACAS 001620
SECSTATE PASS AGRICULTURE ELECTRONICALLY
E.O. 12958: DECL: 11/20/2023
TAGS: ECON EAGR PGOV ETRD VE
SUBJECT: LEADING VENEZUELAN FOOD PROCESSING COMPANY
PRESSURED BY THE GOVERNMENT
Classified By: Randall Hager, Agricultural AttachQ, for reasons 1.4 (b)
and (d)
1. (C) SUMMARY: A well-placed source within Alfonso Rivas
and Co., Venezuela's second leading food processing company,
has informed AgAttache that official government stores will
not purchase food products from this firm. According to
their Government Relations officer, the reason is that a
leading Alfonso Rivas shareholder has spoken out against BRV
policies. END SUMMARY.
2. (C) According to Ms. Eulalia Saltaren (protect),
Corporate Manager for Government Relations and past Cochran
Fellowship Program participant, the Bolivarian Republic of
Venezuela has been applying pressure to Alfonso Rivas by not
allowing its CASA and MERCAL stores to deal with their
company, specifically telling CASA's buying agents not to
purchase Alfonso Rivas products. Traditionally, Alfonso
Rivas does not sell directly to the Government, but rather
works through agents, thus reducing the inherent risk of slow
account settlement that often plagues working with the BRV.
3. (C) This negative action is, according to Saltaren, due
to the company's former president and leading shareholder's
outspoken criticism of the BRV. COMMENT: Although Alfonso
Rivas has received some government "inspections" to ensure
that it is conforming to various fixed price and
anti-hoarding decrees, they have generally taken a low-key
approach to government relations, keeping them below the
BRV's interventionist radar. This action, we believe, raises
pressure on the firm at a critical time just before
elections. According to our past contacts with this company,
they purchase mostly corn and corn starch from the United
States, and also represent many well-known American brands.
Restricting sales to an important market participant could
have a negative effect on Rivas' bottom line, but the more
serious impact will be, once again, the BRV's use of
non-market factors to make business decisions. END COMMENT.
CAULFIELD
SECSTATE PASS AGRICULTURE ELECTRONICALLY
E.O. 12958: DECL: 11/20/2023
TAGS: ECON EAGR PGOV ETRD VE
SUBJECT: LEADING VENEZUELAN FOOD PROCESSING COMPANY
PRESSURED BY THE GOVERNMENT
Classified By: Randall Hager, Agricultural AttachQ, for reasons 1.4 (b)
and (d)
1. (C) SUMMARY: A well-placed source within Alfonso Rivas
and Co., Venezuela's second leading food processing company,
has informed AgAttache that official government stores will
not purchase food products from this firm. According to
their Government Relations officer, the reason is that a
leading Alfonso Rivas shareholder has spoken out against BRV
policies. END SUMMARY.
2. (C) According to Ms. Eulalia Saltaren (protect),
Corporate Manager for Government Relations and past Cochran
Fellowship Program participant, the Bolivarian Republic of
Venezuela has been applying pressure to Alfonso Rivas by not
allowing its CASA and MERCAL stores to deal with their
company, specifically telling CASA's buying agents not to
purchase Alfonso Rivas products. Traditionally, Alfonso
Rivas does not sell directly to the Government, but rather
works through agents, thus reducing the inherent risk of slow
account settlement that often plagues working with the BRV.
3. (C) This negative action is, according to Saltaren, due
to the company's former president and leading shareholder's
outspoken criticism of the BRV. COMMENT: Although Alfonso
Rivas has received some government "inspections" to ensure
that it is conforming to various fixed price and
anti-hoarding decrees, they have generally taken a low-key
approach to government relations, keeping them below the
BRV's interventionist radar. This action, we believe, raises
pressure on the firm at a critical time just before
elections. According to our past contacts with this company,
they purchase mostly corn and corn starch from the United
States, and also represent many well-known American brands.
Restricting sales to an important market participant could
have a negative effect on Rivas' bottom line, but the more
serious impact will be, once again, the BRV's use of
non-market factors to make business decisions. END COMMENT.
CAULFIELD