Caracas, Nov 11 - Venezuela nationalized one of the java-loving country's main coffee roasters on Wednesday and is in talks to buy a majority stake in the other leading brand, after public grumbles about shortages of the bean this year.
Socialist President Hugo Chavez has nationalized many of the oil-exporting nation's key industries in the last two years and blames sporadic shortages of basic goods on greedy businessmen hoarding products.
Coffee production has fallen in recent years. Farmers say price controls have destroyed their profits.
In August, Chavez promised to nationalize the Fama de America and Cafe Madrid roasters, who dominate the market and produce the country's favorite brands of coffee.
"The government is seeking to balance the distribution of coffee," said food storage official Carlos Osorio after the decree to take over Fama de America was printed in the government gazette.
Venezuela is still in talks to form a joint venture with Cafe Madrid.
The government took over the mills of both companies in August after the brands started disappearing from supermarket shelves. The government accused businessmen of smuggling coffee to Colombia for higher prices.
Venezuela was a major coffee exporter until the oil industry began to dominate the economy in the 1920s. It still grows significant quantities of the bean but almost all production is consumed within the country, where every neighborhood has cafes preparing expresso-strength brews.
The 2008/09 harvest that ended in March produced 1 million to 1.2 million 46-kg bags, compared with 1.5 million bags in previous years.
Venezuelan domestic coffee demand totals 1.5 million to 1.8 million bags a year, according to two industry sources.