MercoPress. South Atlantic News Agency

Argentine beef farmers warn of further protests

Thousands of Argentine farmers and people linked to the industry protested Monday against the government decision to freeze beef exports for six months until prices in the domestic market begin to fall to a “reasonable level”.

Demonstrators joined the tractor and truck rally to the town of Trenque Lauquen, 450 kilometers west of Buenos Aires City and one of the country's main cattle-breeding regions. Last week farmers staged a similar protest in Salliqueló and have scheduled another for next Saturday, promising to continue until they manage a favourable reaction from "public opinion".

On Friday the President Nestor Kirchner administration added livestock to the 180-day freeze effective since last March 14 that is blocking exports of fresh, frozen and processed beef. So far only the Hilton quota of high quality cuts for the European Union has been exempted from the ban.

Meantime the price of cattle in Buenos Aires City main live market Liniers, dropped again Monday having accumulated 19.5% since the enactment of the freeze export. However consumer associations claim the price of beef at the butcheries and supermarkets remain steady and in some cases have even increased.

The farmers' protests have the backing of the Confederation of Rural Associations of Buenos Aires and La Pampa provinces, whose leaders warn that if the clash continues, they could be forced to set roadblocks and call a farmers strike.

The suspension of exports for 180 days is the latest step in a months-long struggle between the Kirchner administration and cattlemen, who continue to balk at signing an agreement to prevent domestic beef prices from soaring in this meat-hungry nation. The conflict began escalating last November when the government increased from 5 to 15% the export duty on fresh meat, and intensified in January with the creation of an exporters' registry.

The price of beef in Argentina has soared 168% over the past four years, while overall inflation during the same period was 75%.

Analysts indicate that beef prices inflation has been pushed by strong growth in demand both at home and overseas, coupled with stagnating production in Argentina, which is the third largest beef producer in the world.

Osvaldo Delamata from the Trenque Lauquén Rural Association said that the farmers' objective is to provide beef at accessible prices for the domestic market, "but also keep supplying the international market".

However he warned that with the current restrictions "investment in the beef industry is being discouraged" and in a not too distant future "beef will be far more expensive".

"We're not speculators, we're farmers who want to get on with our jobs and farms", insisted Mr. Delamata.

Argentine Rural Confederations vice-president Nestro Roulet went further and said that "we favour dialogue", but following president Kirchner's words and accusations "we're not feeling comfortable".

"We'll wait and see what is decided in the farmers open meetings: whether we advance and begin adopting more radical actions such as cutting roads with pickets", he added.