May 5, 2008

 

Argentina farmers plan to cut off grain exports

 

 

Argentina's farmers plan to cut off grain exports during a nationwide strike that kicks off Saturday, a spokesman for a farmers group said Friday (May 2, 2008).

 

Jose Casado, of the Buenos Aires and La Pampa province Rural Confederation, or CARBAP, told Dow Jones Newswires that farmers would still supply the domestic market with beef and other goods, but they would set up roadside protests and refuse to sell grain for export.

 

The soy and corn harvests are in full swing, but another strike by the farmers in March have slowed shipments.

 

Argentina is the third largest soy exporter in the world and the leader in shipments of soymeal and soyoil.

 

Earlier Friday (May 2, 2008) , leaders of the four main farm groups said at a press conference that only essential goods would be sold during the strike.

 

The groups met to coordinate policies following the end of a 30-day truce with the government that expired Friday (May 2, 2008).

 

The 30-day truce has so far yielded little on the issue of the tax on grain exports, in which a sliding scale tax which raised the tax from 35 percent to 45 percent  incensed farmers. Last ditch attempts on Wednesday to avert a strike ended without a breakthrough on the issue.

 

The next meeting with the government is set for Tuesday, and farm groups expect "concrete results" to jump start talks. Earlier this week, agreements were reached to regulate the wheat and beef sectors and open up exports, but the government has so far put off allowing shipments.

 

Eduardo Buzzi, president of the Argentine Agrarian Federation, said the groups were expecting the exports to be opened before Tuesday's meeting.

 

Casado said farmers would take a harder line if Tuesday's talks failed to produce a reopening of the beef and wheat exports, and if the government refused to negotiate over the export taxes. Farmers would meet Wednesday to consider whether to continue to allow beef and other goods to be transported domestically, he said.

 

During the March strike, roadblocks by farmers snarled up logistics, causing supermarkets in Buenos Aires to run out of meat and produce. Grain exports also grounded to a halt.

 

The government has threatened to apply the "Supply Law," which allows for fines, imprisonment and confiscation of property if farmers fail to supply the domestic market with essential goods.