March 31, 2009

Argentine farmers may limit sales of grains, beef and oilseeds this week after a seven-day strike failed to win tax concessions from the government, regional farm leader Raul Victores said.

Farmers opposed to export taxes of as much as 35 percent on soy ended a week of strike on Monday (Mar 27).

President Cristina Fernandez de Kirchner refused to budge on the export levies, calling the protests "savage" and vowing to share more tax revenue with regional governments.

Farm leaders and government negotiators may resume talks on agriculture policy in Buenos Aires.

Victores said farmers are going to sell as little as possible, just enough to cover their immediate necessities.

Soy prices rose as much as US$0.11, to US$9.67 per bushel on Friday (Mar 24) after farmers and the government hardened their positions.

Political analyst Julio Burdman said that further protests may undermine tax revenue in South America's second-biggest economy at a time when the government wants to increase spending.

Argentina is the world's third-largest soy grower, behind the US and Brazil.