MercoPress. South Atlantic News Agency

Kirchner calls a beef boycott to force prices down

Argentina President Nestor Kirchner administration launched Friday a public relations offensive against the beef industry urging consumers to switch to other foods if prices remain high.

The president's office, along with the sub-secretariat for defence of the consumer, published advertisements in major newspapers Friday.

"If the price of beef doesn't come down, don't buy it", the ads said in block letters. In smaller print, the government offered this advice: "Choose substitutes such as chicken, fish, pork and legumes."

Meanwhile, members of Compromiso K, an organization of Kirchner's political supporters, put up posters expressing a similar sentiment around the city.

The advertising campaigns come after Kirchner told Argentines in a speech Tuesday to "buy less beef if they don't lower the price - let's make them feel the power of the consumer, so that they don't sell to us at whatever price they want."

Last week citing concern over rising beef prices and their impact on inflation, officials slapped a 180 days ban on beef exports.

Kirchner has threatened to extend the measure to a full year. The administration has also sent inspectors to the Mercado de Liniers livestock market, though officials say they don't plan to intervene directly in the market's operations.

Cattle farmers argue that prices respond to supply and demand, and insist banning exports is a short lived solution since investments in cattle breeding will find their way to other agriculture activities.

Beef is a basic component of Argentines diet with an average annual consumption of 65 kilos per person. The country produces an estimated 3.3 million tons of beef of which 780.000 are exported. In 2005 beef exports totalled 1.4 billion US dollars.

Prices of the main beef cuts soared 25% in 2005 with inflation reaching 12.3%. Analysts forecast double digit inflation again in 2006.

A year ago, Kirchner called publicly for a boycott of Royal Dutch/Shell Group service stations after the company increased prices at its pumps. The move resulted in major demonstrations by unemployed activists against Shell stations, forcing temporary closures. A month later, Shell cut gasoline prices.

The Shell case and Kirchner's capacity for mobilizing popular action remains fresh in the memories of Argentine business leaders.