June 11, 2008

Argentine grain exporters lose US$1.6 billion due to strike

Argentine exporters shipped more than US$1.6 billion less grain over the past three months due to the farm strike launched in mid-March, according to the Rosario Grain Exchange's weekly report.

The strike was launched to protest a new sliding-scale grain-export tax plan that sharply raised the duty on soy shipments.

Protesting farmers blocked roads and refused to allow grain trucks to deliver grains to processing centres and ports.

Between March 15 and June 8, 281,364 grain trucks made it to the processing and export hub of Rosario, a 33-percent drop from the same period a year earlier, according to the Exchange.

The decreased transport flow prevented more than 4 million tonnes of soy, corn, sunflower seeds and wheat from reaching Rosario, the exchange said.

However, if the strike is lifted, truckers could make up the deficit with higher transit levels, the exchange said.

National farm-group leaders announced a suspension of the strike last Friday, but many regional chapters were still continuing to block traffic.