There is no immediate risk of hunger or the need for food aid in Venezuela but the country’s overtly socialist approach to food security is informative, especially in the context of Chávez’ assertion that the global food crisis is the “greatest demonstration of the historical failure of the capitalist model”. About 10% of arable land is owned by wealthy farmers capable of investment in modern inputs and irrigation whilst the remainder comprises poor smallholdings, often of uncertain tenure. The inability of this profile to deliver food sufficiency has prompted a combination of land reform and farming subsidies. Production has increased gradually during the Chávez era but investment strategies for agriculture have been revitalised as Venezuela scrambles to achieve the ideal of food sufficiency in response to the steep rise in cost of food imports.

Distribution is more problematic. The relevant Misión programme centres on the Mercal chain of over 15,000 outlets at which over 40% of the population is eligible to purchase essential foodstuffs at discounted prices. This state control acts as a disincentive to growers and distributors - especially when prices are rising – and food shortages were experienced in early 2008. The government has responded by strengthening its control of distribution through a state food company and imposing tough penalties on businesses accused of hoarding food supplies.

Help us to include all developing countries
Many countries are missing from our range of Country Briefings. OneWorld wants to fill these gaps as part of our efforts to improve understanding of the issues faced by developing countries. We receive no funding for the production of our educational resources. Every small contribution helps!