July 20, 2006

Argentina's Rural Society agrees to members' participation in strike

Argentina's Rural Society, the country's oldest and most prestigious farm group, has given its members the green light to adhere to a four-day strike against the government's agriculture policies, the group's president said at a press conference.

The news comes just days after the country's largest farm group, Argentina's Rural Confederations, or CRA, said it would lead a strike between Jul 22 and Jul 25 to voice opposition to government farm policies.

The CRA claims to represent 102,000 ranchers and farmers across the country. If all of them adhered to the strike, it could affect grain, oilseed and livestock prices.

However, the Rural Society stopped short of formally supporting the strike. It did not call members to adhere to the strike, but rather told them it is all right if they individually choose to go on strike.

This made it unclear what percentage of the Rural Society's members might adhere to the protest.

Rural Society President Lucian Miguens said the strike expresses legitimate concerns that need to be addressed. Among other things, he said the government's March decision to ban beef exports had dealt a "hard blow to producers".

Because part of the strike will be carried out over a weekend, its overall impact on the market could be limited.