June 20, 2008

Argentina farmers extend strike, urging lawmakers to reject soy tax

Argentina's farmers extended their strike until at least Friday night, leaders of the four top farm groups announced at a press conference Wednesday.

Farmers will continue to prevent the sale of grain for export, Argentine Agrarian Federation President Eduardo Buzzi said.

Farmers began the protest in March after the government raised grain export taxes. The situation became increasingly tense this week as food and fuel shortages hit Buenos Aires because of nationwide roadblocks by farmers and grain truckers pressuring to end the conflict.

Farm leaders said that they would spend the weekend meeting with members of the legislature to convince them to vote down the sliding scale grain export tax scheme which sharply raised the duty on soy shipments. Soy make up about half of all Argentine grain output and virtually all of the beans are exported.

Argentina is the world's top exporter of soymeal and soyoil and is the third largest supplier of soy. Tonnes

The ongoing strike and export disruptions have driven up world soy prices as buyers seek out alternative markets to make up for the decreased sales from Argentina.