June 9, 2006

 

Argentina's farm group threatens strike against agricultural policies

 

 

Argentina's Rural Confederations (CRA) one of the country's leading farm groups, said late Wednesday (Jun 7) that its members will carry out a strike if the government does not change its agriculture policies.

 

The CRA is particularly upset about restrictions on beef and wheat exports and high taxes on grain and oilseed exports.

 

"Without solutions (to these problems), the CRA will go on strike," the group said in a statement.

 

CRA President Mario Llambias said at a press conference that the group is "in permanent session" and could decide at any time to go on strike. However, he said the CRA has set no date for a strike or given the government any policy ultimatums.

 

Llambias also said he has told farmers and ranchers "to be strongly militant" and to not give up on the chance that the farm sector can force the government to adopt policies that are friendlier to farmers.

 

Argentine President Nestor Kirchner banned beef exports in March to prevent rising domestic and international demand from pushing local beef prices up. Last month Kirchner also forced exporters to "auto-limit" wheat exports to keep local flour and bread prices from rising amid rapidly rising foreign demand for wheat.

 

Kirchner has also raised taxes on milk and cheese exports while maintaining export taxes that range from 20 percent to 23.5 percent on corn, wheat and soybean exports. The taxes and the restrictions exports have crimped farmers' revenue and, in some parts of the country where climatic conditions and yields are not good, even led farmers into bankruptcy.

 

Kirchner has partially lifted the ban on beef exports. But Llambias said this move was too little, too late.

 

"The reopening of the beef export market has not been sufficient to have an impact on ranchers, who have been suffering because of the ban on exports," he said.