ARGENTINA.
GOVERNMENT ASSISTS BEEF INDUSTRY.
The government of Argentina, came to the rescue of the beef industry on Monday, by guaranteeing a subsidy of up to 40% of meat workers salaries.
The city of Buenos Aires, was built on the back of the cattle trade, with 250,000 cattle slaughtered in the city every week, with all the leather from the hidesbeing tanned and fully processed.
The 14 million population consume 67.5 kilos of meat per capita, which means that 18,000 tons of meat is consumed in the city each week.
The Labor Ministry announced a subsidy program, in which the government will pay between US$100 and US$200 per month towards wages.
This applies to companies that cannot afford to pay wages currently, because of the credit crisis and the export of beef being at a standstill.
The new program called "The Product Recovery Program", has been approved and passed by Congress.
Trade union leader Jose Fantini, who was instrumental in negotiating with the government, said, " We are aiming to avoid salary cuts suspensions and dismissals, the goal is maintain the employment level in the meat industry".
The sharp drop in the price of hides, has caused more problems in the beef industry, traditionally the hides value is used to cover all expenses, including wages.
The news has been well received by all sides of the industry.
