Venezuela Sets New "Fair" Prices For Chicken, Sugar, Rice & Coffee

Tyler Durden's picture


It should hardly come as a surprise for a nation such as the US that is used to being told what a "fair" price for interest rates is... and a "fair" price for housing is... and a "fair" price for stocks is... that Venezuela (perhaps a few years ahead of America in the socialism stakes) has seen its 'price regulator' declare today its new "fair" prices for various foods. Coming to a Safeway near you any day now... (as US food price inflation soars - especially ahead of the barbecue season).


As Bloomberg reports:

Venezuela price regulator publishes list of food prices on its website.

  • A kilogram of sugar to be sold for 9.72 bolivars ($1.54 at official exchange rate of 6.3 bolivars per dollar)
  • A kilogram of chicken to cost 43 bolivars ($6.82)
  • A kilogram of coffee to cost 46.6 bolivars ($7.40), and
  • A kilogram of rice to cost 9.5 bolivars ($1.50)

This follows Venezuela President Nicolas Maduro signing law to adjust prices to “fair” levels and limit profit margins to 30% back in January.

Think it won't / can't happen here...

Bloomberg notes, consumers in the U.S. will probably pay the most ever for meat this grilling season as costs for pork and beef surge, according to the American Farm Bureau Federation.


Seems "Unfair"? on a minimum wage?

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Tue, 05/13/2014 - 19:05 | 4756893 TeamDepends
TeamDepends's picture

If you like your chicken, you can keep your chicken.

Tue, 05/13/2014 - 19:13 | 4756932 knukles
knukles's picture

When I first read that I thought it said "sets fair price for children, sugar, rice & coffee"

Tue, 05/13/2014 - 19:34 | 4757013 max2205
max2205's picture

Johnny Walker still $10.00.for 750 L ?

Tue, 05/13/2014 - 19:35 | 4757016 fonestar
fonestar's picture

fonestar will buy all of your daughters for a couple satoshi.

Tue, 05/13/2014 - 19:37 | 4757024 economics9698
economics9698's picture

"Johnny Walker still $10.00.for 750 L ?"

lol $30 to $50. 

Tue, 05/13/2014 - 20:43 | 4757247 Clint Liquor
Clint Liquor's picture

Like we needed any more examples. Central planners can always be relied upon to be arrogant and stupid.

Tue, 05/13/2014 - 21:08 | 4757334 Zirpedge
Zirpedge's picture

This follows Venezuela President Nicolas Maduro signing law to adjust prices to “fair” levels and limit profit margins to 30% back in January.

Why don't the politicians here mandate 30% profit margins? OK $15 minimum wage but mandate 30% profit margins on top of that, boo yah!  More money More Money

Tue, 05/13/2014 - 19:18 | 4756949 wakablahh
wakablahh's picture

1 Kilogram of chicken = 2.2 lbs of chicken = pretty much same as rottisserie chicken you buy in a grocery store

The price is set at $6.42 in Venezuela .. I've seen the price at Alberstsons to be about that same price.  What am i missing here..?

Tue, 05/13/2014 - 19:21 | 4756963 NOTaREALmerican
NOTaREALmerican's picture

Re:  What am i missing here..?

Chicken tastes pretty good on a rottisserie?  

Tue, 05/13/2014 - 19:28 | 4756982 economics9698
economics9698's picture

What am i missing here..?



That is the official exchange rate of 6.3.  The unofficial rate is 50 to 80.  This means shortages and USSR style stores.  No chicken for you.

Tue, 05/13/2014 - 19:37 | 4757019 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

The shortages will be blamed on greedy business owners. These guys have a plan and they never get tired of doing it. Next they will start arresting chicken sellers. Then everyone will be afraid that selling chicken can get you thrown in jail and even less will be available. But at no point will the governments messing with process be held accountable. Because the leaders will have all the chicken they want.

Tue, 05/13/2014 - 19:39 | 4757034 economics9698
economics9698's picture

Yes this is so predictable.

Tue, 05/13/2014 - 20:59 | 4757304 JackT
JackT's picture

Wait - are you saying sellers won't want to make 6 instead?

Tue, 05/13/2014 - 19:32 | 4757005 El Vaquero
El Vaquero's picture

That's at the "official" exchange rate, which is evidently quite bogus.

Indeed, the reason why today's move is largely meaningless and purely optical, is because there is still an 85% differential between the official rate, and what one can get for a dollar on the black market. Which as the chart below shows is substantially higher, and at last check was 78.38 Bolivars per dollar. Said otherwise, the brand new official exchange rate, which will soon be implemented for everyone, is still 590% higher than the real clearing price of the currency on the black market.

In other words, anything that chicken farmers need that is priced in dollars is going to be very, very pricy for them, and they are being forced to sell at a low price.  This kind of shit leads to supply chain breakages. 

Wed, 05/14/2014 - 07:03 | 4758153 epobirs
epobirs's picture

The Albertsons in my area had boneless chicken breasts for $1.68 a pound. That works out a bit more than half the Venezuelan price. Though the VZ price is probably for the whole bird, bones and all. That regularly gets below $1 pound in my region, LA County.

When you buy a rotisserie chicken it's ready to eat, which is a different thing from buying raw chicken. The rotisserie chicken usually cost a fair bit more than the equivalent weight in raw chicken, which is likely what the article was referencing.

Tue, 05/13/2014 - 19:07 | 4756907 Omegaman2211
Omegaman2211's picture

lol, fucking government.

Tue, 05/13/2014 - 19:08 | 4756909 Major Major Major
Major Major Major's picture

grilling season

Tue, 05/13/2014 - 19:10 | 4756915 Seize Mars
Seize Mars's picture

Paper Money--> Bubble--> Recession--> Stimulus--> Inflation--> Price Controls--> Shortages--> Riots--> Troops on Your Streets

Tue, 05/13/2014 - 19:24 | 4756970 Slave
Slave's picture

Once again, not rocket science. But apparently it is for the average American.

Tue, 05/13/2014 - 20:07 | 4757123 El Vaquero
El Vaquero's picture

It isn't just Americans that are not getting it.

Wed, 05/14/2014 - 00:03 | 4757802 edotabin
edotabin's picture

Nice! +100

Tue, 05/13/2014 - 19:09 | 4756916 Spungo
Spungo's picture

We should have price controls on top of EBT. That will boost our GDP by at least 3.9%

Tue, 05/13/2014 - 21:21 | 4757371 WTF_247
WTF_247's picture

Surely you jest,

It would immediately boost GDP by at least 10%.

If they mandate $35 per hour minimum + 5% profit margin max, it would be like a leprechaun hits the US. The growth would be so extreme that it is raining gold.

Tue, 05/13/2014 - 19:12 | 4756924 Spungo
Spungo's picture

I think it's racist how the CPI assumes black people (and everyone else) will choose chicken because it's cheaper.

Tue, 05/13/2014 - 19:14 | 4756937 knukles
knukles's picture

It is racist because it excludes separate categories for hominy grits and watermelon.
I'm just the messenger, folks...

Tue, 05/13/2014 - 19:30 | 4756996 American Dreams
American Dreams's picture

Careful Knucks, in a civilized, sell reliant society the messinger from the other side tends to see the business end of the blade.  Wait, oh nevermind....

these are all american dreams


Wed, 05/14/2014 - 07:00 | 4758148 SoDamnMad
SoDamnMad's picture

That's racist.  You are banned from the chicken farm and have to sell it.  That's Ok because Oprah is interested in it.

Your chicken farm might sell for almost a billion dollars given the good coverage of stores you sell to.

Tue, 05/13/2014 - 19:13 | 4756929 nosoeawe
nosoeawe's picture

and for all you that say you can't eat gold - go fuck your mother and die. this is why i hold gold you rotten limp dicks. 


Tue, 05/13/2014 - 19:55 | 4757089 CrashisOptimistic
CrashisOptimistic's picture

Hold it all you want.

That leaves more food for everyone else.

Tue, 05/13/2014 - 19:19 | 4756953 NOTaREALmerican
NOTaREALmerican's picture

I don't see very many peasants here in Merica complaining that much about food inflation.   Don't understand why.   Maybe the Federal Reserve is creating it's own reality.

"That's not the way the world really works anymore." He continued "We're an empire now, and when we act, we create our own reality. And while you're studying that reality—judiciously, as you will—we'll act again, creating other new realities, which you can study too, and that's how things will sort out. We're history's actors ... and you, all of you, will be left to just study what we do."



Tue, 05/13/2014 - 19:31 | 4757002 American Dreams
American Dreams's picture

Please reference your quote.

Know your enemy


Tue, 05/13/2014 - 19:43 | 4757052 NOTaREALmerican
NOTaREALmerican's picture

An unnamed aide from a long time ago in a galaxy far far away  :  Creating a Bizarro Reality for Intelligence Professionals ...



Tue, 05/13/2014 - 19:19 | 4756955 I am Jobe
I am Jobe's picture

Coming soon to Amerika. Forward Bitchezz. Amerikans can afford to lose sound serious weight. Also Gas should be around 5.00 per gallon. See what the bitchezz do 

Tue, 05/13/2014 - 19:37 | 4757026 El Vaquero
El Vaquero's picture

I suspect that outright price controls may not be used.  Our scumbags think they're more sophisticated, and may very well try to meddle in other ways.  Or, rather, they are meddling in other ways.  Think subsidies for starters.  The kind of bullshit that they pull makes it more difficult to locate the source of the problems, at least to your average person who doesn't pay attention.  If they do resort to price controls, it's because they're desperate.

Tue, 05/13/2014 - 21:24 | 4757376 WTF_247
WTF_247's picture

They do A, media reports B.  They do C, media reports B.  They then further do D, media reports B.

People get angry at B.

This is all part of the plan.

Tue, 05/13/2014 - 19:24 | 4756971 ThisIsBob
ThisIsBob's picture

We had OPS in the 50's.  Same deal.  When they start accepting rubles, it will get my attenion.

Tue, 05/13/2014 - 21:32 | 4757386 WTF_247
WTF_247's picture

The US govt, in its hubris, thinks that there is NOTHING that will ever replace the dollar.  Borrow unlimited $$, print unlimited $$ and go on your merry way.  At some point those who produce actual goods, who use people and machines to produce such goods get worried about getting paid in $$.  They also tire of being told what NOT to do, how to conform to rules put in place by others but not them.  Meanwhile the US does exactly the same whenever they want and makes the rules as they go along.

That is called wearing out your welcome.

The US politicians do not care about these actors in the background and meaningless actions such as this (most of them).

Until the SHTF and we are at a tipping point.  Only then (when they face the wrath of the population and loss of their jobs and possibly more [aka heads will roll, literally] ...) will they act.  By then its way, way too late.

Tue, 05/13/2014 - 19:29 | 4756992 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

I thought in Socialist Paradise the only" fair " price is free.

Tue, 05/13/2014 - 19:29 | 4756993 Make_Mine_A_Double
Make_Mine_A_Double's picture

Just means the Ven gov will be paying the diff between world price and their set price.

These are the same fucking retards that export crude to the US where refiners turn it into gasoline and J5 and ship it back to Cabello and charge up the ass for it in dollars and than Mr. Merde gives it away to the locals at 10 or 13 cents a gallon in local bum wad. The locals than promptly turn it around and sell in Colombia for a good sized mark up and a hard currency in Colombian pesos.

Tue, 05/13/2014 - 19:40 | 4757044 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

I wonder how many  Ven government employees are doing exactly that? Why in the heck would they want things to change?

Tue, 05/13/2014 - 19:55 | 4757084 Make_Mine_A_Double
Make_Mine_A_Double's picture

I think gas arbitrage and the cocaine 'export tax' are about the only things keeping that turd floating right now.

Tue, 05/13/2014 - 19:51 | 4757071 benqbiggis
benqbiggis's picture

Venezuela the socialist paradise on earth, argentina and brazil to be the next

Tue, 05/13/2014 - 19:51 | 4757072 nmewn
nmewn's picture

I see hunting & gathering in everyones future.

Note to city folks, fish is not really square but I do know a good spot to get fresh meat that wraps itself in plastic as it falls to the ground ;-)

Tue, 05/13/2014 - 23:39 | 4757765 Hulk
Hulk's picture

LOL, next you are going to be telling us that cows are nonspherical, silly cracka !!!

Wed, 05/14/2014 - 12:22 | 4759377 homiegot
homiegot's picture

Tube-shaped meat animals. just lop off the appendeges. Wala!

Tue, 05/13/2014 - 19:53 | 4757078 Unknown Poster
Unknown Poster's picture

Selling coffee, sugar, chicken and rice at a loss should go over big, shortages are sure to follow.

Tue, 05/13/2014 - 19:55 | 4757086 Cycle
Cycle's picture

Funny how that also works when a central bank sets the price of capital - shortages are sure to follow.

Tue, 05/13/2014 - 19:58 | 4757097 atthelake
atthelake's picture

I've just purchased 2 books from Amazon about gathering, cooking and eating wild, edible plants. Fiddleheads and dock are examples.

Tue, 05/13/2014 - 20:01 | 4757107 El Vaquero
El Vaquero's picture

Common mallow (Malva neglecta) is edible, though if that shit gets into your garden and goes to seed, you'll have to nuke it from orbit as that will be the only way to be sure that you have gotten rid of it. 

Tue, 05/13/2014 - 22:15 | 4757524 ThisIsBob
ThisIsBob's picture

"Few people realize that the Volkswagen Bug contains 167 edible parts."  (Euell Gibbons)

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