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Argentine Farmers Begin Strike To Protest Hike On Soy Exports

Published on Mar 10 2020 7:39 AM in Supply Chain tagged: Trending Posts / Argentina / exports / Soy / World News

Argentine Farmers Begin Strike To Protest Hike On Soy Exports

Argentine farmers began a four-day strike on Monday to protest the government's hike on export taxes for soybeans and its byproducts, though shipments were not impacted in the major global food exporter.

Three of the South American country's four main rural associations announced the strike last week in frustration over the government's decision to raise soy export taxes to 33% from 30% amidst a deep economic crisis.

Impact Of The Strike

The impact of the strike would likely be visible by Tuesday (today) when grains and beef already sold will not arrive at ports, industry experts said.

About 4,800 trucks carrying grains entered the terminals on the Parana River at Rosario on Monday, according to CAPyM data. On the same date last week, the number of trucks was 3,100.

"The activity in the port area [of Rosario] is completely normal," Wade said, adding that the strike is not expected to impact grains shipments because the export companies have reserves in their ports.

The latest crop of soy has also not been harvested, Wade said, further mitigating the impacts of the strike.

'Political Implications'

The protest has political implications in Argentina, one of the world's largest exporters of soybeans and corn, as it is reminiscent of a conflict between farmers and the Peronist government of former President Cristina Fernandez de Kirchner from 2007 to 2015.

Fernandez de Kirchner is currently vice-president to centre-left president Alberto Fernandez.

Her administration was locked in a fierce dispute with agriculture producers that reached a boiling point in 2008 when she attempted to raise taxes on soy exports.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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