Argentine farmers begin four day sales strike to protest higher export taxes

Monday, March 9th 2020 - 08:57 UTC

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Argentina’s main farm groups will hold a four-day sales strike this week, officials with local growers groups said on Thursday, to protest a tax hike that soy crushing companies warn will cripple investment in the key sector. Read full article

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Enrique Massot
The producers' lockout has had limited effects on its first day.

The reasons cannot be understood without the context provided in another MP story published March 4 (see link below).

The story noted the increased soybean export taxes will only reach about 25 per cent of the producers -- the largest ones benefiting from economies of scale and producing over 1,000 tons. Those are the only ones to pay the three-per-cent increase.

For farmers producing between 500 and 1000 tons, the levy remains as it is now, 30 per cent.

Farmers producing less than 500 tons annually will pay below the existing 30 per cent.

Products such as wheat, corn, sorghum, milk, cotton, fresh fruit, wine, legumes and wine making part of regional economies will remain at around five per cent.

That is why the lockout has had limited support from producers -- because a large majority or about 75 per cent of them are not going to have increases -- in fact, many will see a reduction in their taxes.

https://en.mercopress.com/2020/03/04/argentina-increases-soybean-exports-tax-10-from-30-to-33-small-farmers-will-pay-less
Mar 09th, 2020 - 07:22 pm - Link - Report abuse 0
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