MercoPress. South Atlantic News Agency

Argentine farmers sixth day of protest, and more next week

The stand off between the Argentine government and striking farmers who are protesting against export taxes on grains, beef and dairy produce has yet to see effective signals of a cooling of the situation or the possibility of a dialogue.

Tuesday marked the sixth day running of the country's main farmers' associations' decision to freeze all sales of livestock, cereals and milk which has closed down grain markets of which Argentina is a leading world exporter and left Buenos Aires cattle supply market virtually empty (90 head of cattle when 10.000 is the normal number in weekdays) "We're not trying to leave Buenos Aires without beef, but rather trying to convince government to reconsider its tax policy", said Luciano Miguens, president of the powerful Argentine Rural Society. "If the government back steps on its policy and acts with intelligence and capacity it will realize that it's the whole country that has benefited from the camp's recovery". The government of President Cristina Fernandez de Kirchner (and the previous Nestor Kirchner administration) has imposed sliding export taxes on grains and oil seeds ranging from 27 to 41%, plus temporary export bans on cereals, beef and dairy produce to keep domestic prices in line with consumers' pockets and inflation targets. But cabinet chief Alberto Fernandez replied that the government is "not going to review the policy" and insisted that in spite of the levies "farmer's profits have soared and are extremely high". Besides, "we are not going to yield to extortion". "Instead of striking we should be thinking about the future, looking ahead; we can then sit and talk", he added. Furthermore some of the most combative farmers associations such as the Argentine Agrarian Federation and the Argentine Rural Confederations announced the current freeze on markets provision and protests with tractors and harvesters along highways and cities "would continue and intensify next week". That was the reply to a speech from Economy minister Martin Lousteau who addressing foreign and local investors ratified the current taxing policy on the camp saying "there's no turning back". However on Tuesday mid afternoon Agriculture Secretary Javier De Urquiza and Domestic Trade Secretary Guillermo Moreno announced a 20% rebate on locally produced fertilizers for the next wheat season. "Local manufacturers of fertilizers have agreed to cut prices 20% which in cost terms for wheat means a 12% reduction and in money terms a transfer from the industrial sector to farmers in the range of 100 to 110 million US dollars", said Moreno adding that the estimates were based on the latest crop and obviously if "farmers plant more, they will have higher yields and higher transfers". However 60% of fertilizers used by wheat farmers in Argentina are imported. "We know the use of fertilizer has increased in the last two years and this agreement with manufacturers will enable a greater volume and cheaper prices", said De Urquiza. Moreno and De Urquiza made the announcement next to the main nitrogen fertilizer manufacturers of Argentina among which Cargill and Petrobras.