October 4, 2008

Argentina grain farmers halt trade, resume strike

Argentine farmers halted sales of grains and livestock on Friday (October 3), to resume a six-day strike demanding changes in government farm policy and reigniting a standoff with President Cristina Fernandez.

Farmers once again held roadside demonstrations across the country's farming region and few grains trucks plied the highways. The protest was expected to last through Wednesday (October 8).

"We have to remind people that things are not going well for farmers. In fact, they've gotten worse," said Eduardo Buzzi, leader of the Argentine Agrarian Federation, one of the country's four main farming groups.

Farmers are worried about a fall in global grains prices. Small farmers "are buckling under the export taxes," Buzzi said, urging the government to pull together "a national agriculture plan given the current global context."

An Economy Ministry source said officials planned to announce a package of measures linked to ranching, dairy farming, wheat and corn in the coming days.

The protest revives a bitter dispute between the government and farmers angry over export taxes and price controls aimed at taming inflation in the beef, wheat and dairy markets.

Argentina is among the world's top exporters of soy, corn and beef, yet about a quarter of its citizens live in poverty. The center-left government says export taxes help redistribute wealth.