March 10, 2009

Argentina published a flurry of resolutions on Monday (March 9) in the Official Bulletin, implementing the agreements reached with farm groups last week.

 

The move comes ahead of a meeting between farm leaders and the government on Tuesday, the third in as many weeks.

 

Tension is still high between farmers and the government, but the rapid implementation of the concessions agreed to last week may make it easier for the leaders of the farm groups to convince their sceptical membership that the government took the negotiations seriously.

 

The resolutions included subsidies, tax breaks and increased export quotas for farmers.

 

The official reference price for grains was raised, which should increase the amount farmers receive for their goods.

 

The export taxes on dairy products were reduced, and dairy farmers will receive subsidies to encourage them to raise male calves for beef.

 

The plan is designed to help dairy farmers and increase beef production by putting an estimated 800,000 additional steers into the nation's beef supply each year, according to the resolution.

 

In addition, ranchers who have suffered from a lingering drought will be able to claim a subsidy for the feeding of up to 300 animals, with a maximum payment of ARS11,000 (US$3,050) per rancher.

 

The quota for low-grade beef exports was expanded, and the percentage of beef processed by exporters required to be sold in the local market was lowered to 65 percent from 75 percent.

 

The maximum period allowed for the government to review beef export permits for high-end cuts was shortened to five days from 15.

 

On Tuesday, a partial agreement to avoid a repeat of last year's bruising farm strikes was reached after President Cristina Fernandez dropped in unannounced on the meeting between farm leaders and Production Minister Debora Giorgi.

 

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

 

However, the farm leaders aren't so sure. They continue to complain about restrictions and taxes on exports as well as the widespread damage suffered due to drought this season.

 

"The conflict is by no means resolved," Eduardo Buzzi, president of the Argentine Agrarian Federation, told reporters.