Argentine farmers begin four day supply strike
Argentine farmers will halt sales of grains and livestock in a renewed protest against a tax on commodities exports and other government agricultural policies, farm leaders confirmed on Thursday.The protest holding back livestock and grains from the market for four days begins on Friday, but does not include dairy produce or perishables nor will it involve pickets cutting road traffic.
Farmers had the protest planned for last week but given some messages from President Cristina Fernandez de Kirchner, they decided to wait a few more days hoping to the called for talks on farm policy issues, particularly the heavy export taxes, tolerable when windfall earnings but no longer so, following the collapse of commodities’ international prices.
At last minute the government on Thursday sought to meet with farmers and avert the strike, but farm leaders dismissed the move as a "ploy".
Producers, squeezed by falling commodity prices amid the global economic downturn, have stepped up calls for lower export taxes, (particularly on Argentina’s main export soybeans), an end to price controls and government aid to farmers suffering from a prolonged drought.
Months of protests over similar issues last year set off a political crisis for Mrs. Kirchner who suffered a major Congressional defeat.
The atmosphere lately has been further exacerbated by revelations from the government that the head of the Argentine Rural society Hugo Luis Biolcati, one of the four main farm groups, had held secret meetings with the Planning Minister to try and reach an accord to satisfy some of the demands.
"We had reached significant agreements on beef, milk and wheat sales. The thing is that dialogue does not mean having to say "yes" to everything" Mrs. Kirchner said and reiterated that her government would not lower export taxes on soy, which is one of the farmers’ key demands, warning it would affect fiscal stability.
Biolcati who had not revealed the "private non official" talks to his fellow members of the farmers’ coordination committee said he participated as an "act of responsibility" and accused the government of not honouring its word, they broke the codes".
"I was requested confidentiality which I respected, but it was all a government ploy to destabilize our committee", said Biolcati who was later supported by his pairs.
Analysts said they did not expect the four days action of holding sales would affect exports from Argentina, a leading supplier of soybeans, corn, wheat and beef.
"International trade will not be interrupted by a four-day strike," said Patricia Bergero, deputy director of economic research at the Rosario Grains Exchange.
However last year’s prolonged protests slowed Argentina’s economy as farmers disrupted grains exports and blocked highways, causing food and fuel shortages in a crisis-scarred country.
Nevertheless Production Minister Debora Giorgi invited leaders of the four farm groups to meet on Tuesday, Feb. 24, to discuss the impact of the global economic crisis, which has depressed prices for Argentine soy, corn and wheat.
