February 8, 2008

Argentina harvest costs up 25 percent on-year
 

Harvest and transport costs in Argentina have soared over the past year, with farmers expecting to pay about 25 percent more to bring their crops to market this season, local daily El Cronista reported Wednesday (February 6).

Rising diesel prices have driven up the cost of operating farm machinery and transport, according to the report. The price of diesel has risen 20 percent on the year, the newspaper added.

Farmers will pay an average of ARS213 (US$67) to harvest each hectare of soy and ARS247 to harvest a hectare of corn this season.

In addition, the grain truckers union, or CATAC, has been calling for increased fees and threatened to strike next month over rates. However, an agreement was reached this week to raise transport costs by 25 percent.

Despite the sharply higher fees, farmers aren't complaining. Grain prices have surged over the past year, with local soy values almost doubling.