Agricultural producers in Argentina began this Wednesday a 24-hour strike in the commercialization of grains and livestock, which they accompanied with various demonstrations, to reject, among other things, the fuel shortage of recent weeks as well as the increase in the prices of fertilizers, high tax rates and foreign exchange controls in the midst of the most important stage of the harvest.
The strike was called by the so-called Link Table, made up of the four largest rural employers’ associations in Argentina. Call that was attended by hundreds of farm workers, producers and businessmen who joined the different points of demonstration in the country, especially in the eastern province of Entre Ríos.
“To begin with, we want them to leave us alone. The moment we start producing they want to get a little more out of us, a little more. They put their hands (in their pockets) for taxes, they put their hands withholding exports, and we don’t know how to do anything other than produce,” said farmer Ronaldo Luis Barolin while participating in the activities.
The most relevant protest took place in the city of Gualeguaychú, a place established by the organizers as the main point. There, the citizens moved along the highways in different agricultural work vehicles and horses adorned with the Argentine flag.
“We have not yet seen a single public policy for the sector. In Argentina, seven out of every ten dollars that are generated today (from exports) come from the agricultural sector. We are part of the solution to the country’s problems,” he declared. to the press the president of the Argentine Rural Society (SRA), Nicolás Pino.
However, the mobilizations did not contemplate roadblocks or routes as is customary. And so far no incidents have been reported.
Pros and cons of the conflict in Ukraine
Argentina is the leading exporter of soybean oil and meal and one of the most important food producers in the world, and has benefited from the increase in the prices of cereals and oilseeds as a result of the conflict between Ukraine and Russia.
“Today the world offers a historic opportunity, due to the case of the war (in Ukraine), so we must take advantage of it so that the countryside generates more raw materials and food, creating jobs, developing the interior and favoring roots in the provinces,” Nicolás Pino exhorted the Government.
But the war has also resulted in more expensive imports of fertilizers and fuels such as diesel, which is mostly used for machinery and vehicles that work in the fields.
The agricultural sector has been strongly affected by the increase in the cost of these inputs, since the country imports 60% of the fertilizers it uses. Of that percentage, 15% came from Russia. In addition, inflation in the first five months of the year was close to 30% and economists forecast that by December it could reach 80%.
The crisis is also exacerbated by the fuel shortage that has been occurring since mid-March after the conflict began in Ukraine and by the creation of a trust to stabilize the price of wheat in an attempt to separate it from high international costs. increased by the Russian-Ukrainian conflict.
Other demands of the agricultural sector
Producers claim that the government has excessive intervention in the market through grain and meat export quotas, sales taxes for international purchases, as well as strict restrictions on all imports to contain costs.
“We have restrictions for dollars, restrictions for imports, withholdings for exports, our economy is closing more and more and we are isolating ourselves from the world, when all the walls of the world have already been demolished and what we have to do is open up. We produce everything the world needs in Argentina. We have all the possibilities and we are letting them pass,” said Marceo Meda, a farmer in the area.
They assure that it is very difficult to achieve better productivity with the runaway inflation in the country. They also denounce the great gap that exists between the official exchange rate of 135 pesos per dollar compared to the prices on the black market or through debt bonds that almost double it.
“We do not want a devaluation that causes damage, if we want there to be a logical adjustment of values in the dollar that allows us to have a reasonable export and that generates a framework of profitability that can show the producer that it is viable to be able to continue,” he said. Jorge Chemes, president of the Rural Confederations of Argentina.
The Government rejects the demonstrations
Juan Manzur, head of the Cabinet of Ministers, declared this Wednesday his rejection of the strike in the agricultural sector, assuring that various measures have been promoted to guarantee the supply of fuels, such as the increase in production in local refineries and the temporary suspension of diesel import taxes.
“We do not agree with this strike. We think it leads to nothing. There is a very complex energy situation worldwide, but happily this has been resolved,” Manzur said.
However, the Cabinet chief stated that the Executive “will always be open to increasing production” and dialogue.
Faced with this statement, Juan Diego Echevere, a member of the Rural Society of the province of Entre Ríos, assured that “we are always ready to dialogue with the Government. What happens is that dialogue alone is not enough, we need a change in policies.”
This is the fourth time that the agricultural sector has mobilized since President Alberto Fernández took office in 2019, a government that in recent years has been marked by strong internal divisions and conflicts with Vice President Cristina Fernández, which recently generated the abandonment of one of the last people loyal to the president, former Economy Minister Martín Guzmán, who was replaced a few days ago by Silvina Batakis.
However, in recent days there seems to be a truce between the president and the vice president, who in the last week have spoken to each other on at least four occasions.
Experts say that with the latest crisis generated by the resignation of Guzmán, they have considered joining forces, taking into account that there are only 15 months left for the presidential elections.
With information from EFE, AFP and Reuters
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