My Venezuela experience as head of trading in the region for Cargill.
Cargill was/is the leading producer of critical staple ingredients such as flour, pasta, vegetable oil, and rice in VZ. I am not saying I agree with grabbing the dictator, but I did have a front row seat to the damage a kleptocracy did to innocent people.
1. The government took over our "minute rice" facility at gunpoint because we were "gouging" the nation's poor. The government was never able to run the plant. It never ran again. It was returned years later with no equipment inside
2. There are 1000's of generals in the army. They are each given a slice of the economy to loot. The large number of generals made it difficult to organize a coup against the regime.
3. The government opened grocery stores and sold staples below the cost we sold them to the government. In theory they used petro oil money to lower grocery prices. Our regular grocery outlets were forced out of business. When the government demanded we sell them products below cost we simply had to shut down. The populous became ever more dependent on the government handouts. (PS this is the mayor of New York City's proposal.
4. Dollars- We needed dollars to go buy raw materials like wheat from places like the US and Canada. The government would periodically allocate us some dollars that could only be spent for raw materials and freight. Eventually only the local companies that can and would pay bribes got dollar allocations. We had several facilities closed for lack of raw material
5. My employees liked working for Cargill. The office was an armed compound with access to a gym, high speed internet, global communications, and a weekly box of basic staples. Cargill provided a safe and secure environment if only for the working hours.
6. Employees became very close to others inside the apartment building. Going out on the street with a desperate population was not advisable.
7. I needed wood pallets for feed. We tried to export wood pallets to swap for grain. We refused to pay the bribes it would take to export the pallets
8. I once tried to set up a closed loop wheat planting to flour mill supply chain. A. They came and stole all the seed wheat for food. When we tried to ship in seed wheat in containers via US donors there was no way to get it out of the port without it being stolen
9. Livestock- Our feed business completely collapsed. Even if you could raise a pig, you couldn't defend it from being stolen. People with guns were hungry.
10. Employees- In the end my highly skilled team alone with other highly educated people chose to leave. Cargill often found jobs for them in other Latin countries. The regime was more than happy to see the well-educated leave the country. Setting these employees up with high quality stable jobs after fleeing remains one of the best things I ever did in my career. No one remembers millions in trading earnings.
This is a short list. In my opinion the first money spent needs to happen now and it needs to be food. The US is already on the clock. The current regime does not care if it starves the population. The orgy of theft will actually accelerate if they believe their days are numbered. VZ should be an outstanding customer of US grown ag products. Rice, bread wheat, veg oil ect. Feed the people first.
Jeff Kazin
Former head trading Cargill
Here is why farm subsidies to crop farmers hurt other farmers.
There is a 200 acre farm near some of my rented pasture. The ole boy sold good cattle last year.
This part of the world is rolling to steep hills. Hay is the main crop in my county. We had a drought and an almost failed hay crop last year.
I stopped by and talked to the owner and a friend of mine is putting the old hay fields into beans… the rent is just slightly more than I would pay to graze the farm.
The rent was adjusted down because inputs would be higher due to the loss of efficiency created by runoff.
The owner needs as much rent as he can get, so he went with the bean guy.
The bean guy is going to make up the difference with subsidies.
The government is putting its thumb on the scale and encouraging inefficiency, waste, pollution etc.
That’s why these farm payments need to stop.
Let’s the market decide.
Whenever I hear older farmers talk about buying ground and that’s what lead them to wealth and “there’s never a right time to buy, just buy” I think of this picture.
How many stories do we not hear? Bet the house and the house fell? People only brag about success, rarely failure
@Ryan90509722 You might consider letting him
Work full time on the farm for one year and really include him in all decisions that are made. Then send him to college or tech school. I think he will appreciate the opportunity to be a kid and learn more after year of full time farming
Stop thanking farmers.
Its silly.
I'm proud to be a farmer don't get me wrong, but I chose this career path and don't need praise or special thanks for doing my job.
I hope you too can be proud to do what you do, and humble enough to not NEED a "thanks"
#nationalfarmersday
And if you don't succeed within a system, it's easy to blame the system. Anecdotal success or failure does not dictate whether a system is good or bad.