11 Nov 2008

Shortages of coffee in Venezuela

9:43 am on 11 November 2008

There is no coffee in many Venezuelan supermarkets - even though Venezuela is a coffee-growing nation.

Last year there were widespread shortages of staples such as milk and beef, but these were largely eliminated shortages by the government earlier this year.

However, shoppers have been unable to find coffee in stores in recent weeks, though cafes still serve it and street vendors sell it at about twice the regulated price.

Business leaders say the problem is largely driven by strict price controls that the government uses to contain the highest inflation in Latin America.

Venezuela is a coffee-growing nation and has two major producers as neighbors -- Colombia and Brazil.

The Venezuelan Coffee Industry Association says roasters are producing less than normal after the government last month raised the regulated price they must pay farmers for beans without changing the retail price of ground coffee.

Unusually heavy rains, a smaller harvest than expected and hoarding by customers have exacerbated the problem.

Voters go to the polls on 23 November.