MercoPress. South Atlantic News Agency

Argentina/Venezuela agree to exchange beef-flour for oil

Venezuela and Argentina agreed Tuesday to exchange food for energy thus helping to overcome both countries' weak points following a high level meeting in Caracas. Argentina is to supply 1.000 tons of beef monthly and Venezuela will provide all the crude needed to ensure Argentina's “human and industrial development”.

In Caracas's Miraflores Palace President Hugo Chavez said Argentine needs "no longer to worry about the energy issue", Venezuela will provide. Similarly "the Venezuelan families are grateful to Argentina for its efforts in making every day life easier". Foreign Affairs minister Nicolás Maduro said that a high level bilateral technical committee will help prop Venezuela's agriculture and food industry, plus the construction of a plant to manufacture Argentine farm equipment. Argentina's delegation was headed by Planning Minister Julio De Vido the country's "energy czar" and close aide to both President Cristina Fernandez de Kirchner and her husband former president Nestor Kirchner. He was accompanied by officials from Argentina's agriculture technology and energy companies and representatives from the private sector. "We urgently need in the short term a stockpile of food which we do not have at the moment", admitted Chavez. "We need to speed the building of our food producing capacity". Venezuela is facing increasing shortages of basic staples such as milk, beans, meat, poultry and even bread as price controls and nationalization of shops advances fueling the black market and curtailing the economy. De Vido underscored the significance of the agreement since "it represents a fair deal which will enable the sustainable development and growth of both countries". The representative from Argentina's Millers Federation, Alberto España said that Argentina will supply Venezuela "with all the flour they need". "The Argentine government decided to provide Venezuela with all the flour they need, and we will provide, as Venezuela will supply us with all the oil we need", said España.