MercoPress. South Atlantic News Agency

Argentine farmers frustrated with government tactics

Argentine farmers and government officials couldn't reach an agreement Tuesday on wheat taxes triggering fears of a revival of the three week protests which caused food shortages and a major political challenge to the administration of Cristina Fernandez de Kirchner.

Farmers rejected the government wheat initiative and presented a counter proposal which is currently under consideration by the Argentine Agriculture and Livestock ministry. "We're trying to agree on a mechanism which normalizes markets. But we're not willing to accept the government's proposal which leaves grains trade in the hands of five multinational corporations; that's the reason for our proposal which privileges the supply chain and the Argentine consumer", said Eduardo Buzzi president of the Argentine Agrarian Federation and one of the delegates at the round of talks. "We believe farmers, millers and consumers should be involved in the wheat market", he added. As to the round of talks and the fact the one month truce is approaching its May 2 deadline Buzzi said "we're working day by day, point by point; if we can agree on beef, great; if we can agree on wheat, great, that's how we are addressing the round", said Buzzi. Mario Llambías president of the Argentine Rural Confederations said "several conflicting points persist", but "we hope to overcome them tomorrow (Wednesday)". But he also admitted he was concerned because if by May 2 there's no agreement, grass-roots are prepared to take to the highways to resume protest. "It's essential that lifting the export ban on beef and grains becomes effective so we can have markets working as they should, but there's a lot of people concerned, if not scared, that if solutions are not reached they must prepare for the worst", he emphasized. Following the three weeks strike farm groups agreed to spend April in talks with the government but leaders have repeatedly complained of a lack of progress raising expectations that protests could start up again. On Tuesday Argentine stocks and bonds fell and the local currency, the Peso, slumped to a six month low on investors fears that stagnated talks could lead to a resumption of the camp strike. On Monday the Argentine government threatened with invoking a controversial commerce law to ensure beef is sold domestically at recently agreed prices. Domestic Commerce Secretary Guillermo Moreno was quoted saying that beef exports would not resume until prices fall at the nation's counters. During the ongoing farm negotiations, the government last week said it would let beef shipments get back to normal while farmers promised to supply the local market at March prices. Consumer prices for meat have yet to come down at all stores and for all cuts, but farm leaders were critical of the government's latest price control measure.