March 4, 2009

A partial agreement reached between the Argentine government and farmers over agricultural policy had "unstuck" stalled negotiations although "more work is needed," Rural Confederation president Mario Llambias said in a press conference following the talks Tuesday (March 3).

Farmers will meet with government officials again next week to continue the talks, Llambias said.

Earlier, Production Minister Debora Giorgi announced that deals had been reached on the issues of meat, wheat and milk, after over five hours of talks in which President Cristina Fernandez made a surprise visit.

"We hope this ends the conflict," Interior Minister Florencio Randazzo said at a press conference earlier Tuesday.

The agreements centred on providing farmers a minimum price for their wheat, loosening wheat export controls, and upping subsidies and export quotas on beef and dairy products, Giorgi said.

Randazzo said that the government remained firm on the issue of soy export taxes, which will remain at 35 percent.

The Rural Confederation's Llambias said that the taxes had been discussed, but that the president indicated that fiscal constraints made cuts impossible at this point.

However, Llambias said they would continue to press the Congress to reform the taxes.

The government was still considering the formation of a government grain and beef purchasing entity, but that it was not going to happen right now and such a plan would be submitted to Congress for approval if President Cristina Fernandez decided to move forward, Randazzo said.