April 12, 2022

Grain truckers in Argentina begin open-ended strike, affecting grain exports

Grain truckers in Argentina have started an open-ended strike to demand increased rates for grains and livestock transportation, which could result in grain export disruptions during a major time of the harvest, Reuters reported.

Argentina's harvesting for soy and corn has recently begun, which is important for global markets after Russia's invasion into Ukraine pushed grain prices to record highs. Argentina is the biggest soy exporter and second biggest corn exporter in the world.

The strike did not immediately affect grains exports as traders have enough inventory at ports to cover a few days of shipments.

Sector representatives met with Argentina's Transportation Ministry last week, but no new meetings have been planned.

Edgardo Aniceto, a spokesperson for transportation union FETRA, said there are no negotiations happening currently. He said the strike has no end date.

About 85% of grain volume in the country is transported from fields to ports via truck. This results in heavy truck traffic in the second quarter of the year.

The Buenos Aires grains exchange projected the current harvest yield at 42 million tonnes of soybean and 49 million tonnes of corn.

FETRA said soaring diesel prices have made it difficult to work under current conditions. Their statement comes after  the government, truckers and farm groups agreed on new rates in early February this year for transporting grains.

-      Reuters