MercoPress. South Atlantic News Agency

Argentine farm row impacts strongly on industrial activity

Industrial activity in Argentina during the month of June expanded 1.8% compared to the same month a year ago but dropped 4% against May as a consequence of the prolonged stand off between farmers and the administration of President Cristina Fernandez de Kirchner.

Nevertheless the first half of the year ended with a 6.2% expansion according to the latest release from the National Statistics and Census Office, Indec. The food industry was hardest hit by the farmers' conflict having contracted 9.9% with peaks of 18.1% in sub sectors such as beef processing and 25.6% in the milling and cooking oil industries. The stand off with the camp which included a ban on the trade of grains and oilseeds for exports, plus pickets on roads, was triggered last March when the government attempted to significantly increase taxes, and extended to a week ago when the Argentine Senate voted against the bill. June's growth is the lowest record of industrial activity in Argentina since November 2002. During June the manufacturers which did best were, automobile with 10.1% increase; textiles, 6.6% and chemicals, 4.2%. Last year industrial activity in Argentina expanded 7.5% over 2006.