May 8, 2008

Argentina grain farmers start fresh round of strike

Argentina farmers have once again blocked grain exports after the collapse in talks with the government on Wednesday.

Cabinet chief Alberto Fernandez, who led the government's talks with farm-group leaders, refused to continue the meetings, saying that the threats to disrupt grain shipments amounted to extortion.

Farmers in Cordoba and Entre Rios provinces gathered on highways and impeded access to trucks carrying corn and soy hours after his comments.

Alfredo De Angeli, one of the leaders of a three-week protest in March, urged President Cristina Fernandez de Kirchner to intervene.

De Angeli said he and the other protesters would not back down.

The protests are seen to worsen a global food shortage and hurt South America's second-biggest economy.

Argentina, the world's second-largest corn exporter and third in soy, relies on agriculture for more than half of its export earnings.

The government imposed the export taxes and food-price caps to combat domestic inflation.

Meanwhile, soy rose 2.5 percent to US$13.09 a bushel on the Chicago Board of Trade on Tuesday, their first gain this week, on concern supplies may be disrupted. The price has surged 80 percent in the past year.