CARACAS (AFP) -- Venezuelan President Hugo Chavez on Sunday warned Venezuela could expropriate milk processing plants based here and owned by Italy's Parmalat SPA (PLT.MI) and Swiss-owned Nestle SA NSRGY, +0.43% .

"It doesn't make any difference if we set up (state) milk processing plants if there is no milk to process because it is all taken away by Parmalat or Nestle," Chavez complained in his weekly radio and television program "Hello Mr. President."