Food Roundup: Cargill Seized, Support for Food Bill, Krispy Kreme Resolution, and More

Venezuela expropriates Cargill rice mill — President Hugo Chavez ordered the nationalization of a rice mill owned by a Cargill subsidiary, saying the plant was evading price controls on basic foods by producing a higher-grade rice not covered by the laws. A Cargill spokesman said the company was “respectful of the Venezuelan government decision” but hoped to negotiate. Venezuelan food-processor Polar may also be targeted. [Sources: FoodNavigator-USA.com, CNN, Wall Street Journal]

Grocery Manufacturers Association supports food regulation bill — General Mills, Kraft, Kellogg and other members of the trade association announced their support for a new food safety bill introduced in the Senate. The bill would give the FDA more authority to recall products and require manufacturers to come up with food safety plans. According to the GMA, the group has experienced a “philosophical shift” on government regulation in light of the recent salmonella peanut butter scandal. However, it’s also possible the companies support the new bill because they fear legislation that would have even stronger regulations, such as Rep. Rosa DeLauro’s bill in the House. [Sources: Bloomberg News, Food Politics]

Krispy Kreme settles with SEC — The doughnut-maker reached an agreement with the Securities and Exchange Commission over alleged book-cooking by previous executives in 2003 and 2004. The company received a cease and desist order but faced no monetary penalty. Former CEO Scott Livengood, former COO John Tate and former CFO Randy Casstevens agreed to pay a total of almost $783,000 but admitted to no wrongdoing. Through their lawyers, the men said they were “pleased” with the outcome. [Sources: Daily Bread, Wall Street Journal]

Funding cut for Mexican trucks on U.S. roads — A controversial program allowing Mexican trucks to transport goods across the U.S. would lose funding under both the Senate and House versions of the omnibus appropriations bill. Under NAFTA, the U.S. was supposed to allow Mexican trucking companies to operate throughout the country, but trucker unions and other groups have said that Mexican trucks are not up to U.S. safety standards, and that lower Mexican trucker wages would drive down wages here. A pilot project under Bush allowed Mexican companies to operate nationwide in the U.S., provided they met certain safety standards, but few trucking companies took advantage of the program — in part because of fear the program would be cut off, as it now likely will be. [Source: Foreign Policy, Washington Post, AP]

McDonald’s offers gift card to 911-caller — McDonald’s has apologized to a Florida woman who called 911 three times after a McDonald’s employee refused to give her a refund for her Chicken McNuggets. The location was out of Chicken McNuggets, but she’d already paid for them, and the employee said she had to order something else rather than receive a refund. The woman called 911 and reportedly told the operator, “This is an emergency.” Police arrested her for misusing emergency services, but the burger chain said it was sorry and would give the woman a gift card for a free meal. [Source: QSR]