RIO DE JANEIRO, BRAZIL – The strike was prompted by the decision of President Alberto Fernandez’s government to suspend all corn exports until March in an effort to curb inflation and prevent further increases in domestic price levels.
The Liaison Table, a group of four producers that represent the bulk of Argentina’s agricultural sector, responded by rejecting the measure and calling for the strike.
These strikes come just weeks after the end of another set of strikes by oilseed workers unions and soy crushing companies, which ground Argentinian ports to a halt. Renewed agricultural strikes have the potential to impact the Argentinian economy heavily as well as President Fernandez’s approval ratings. The agricultural sector makes up 10% of Argentina’s GDP and 60% of its exports, so any suspension of production has the potential to stall the Argentinian economy.
Expect President Fernandez to initiate talks with the agricultural sector to rework and potentially rescind the export ban on corn. The talks will likely revolve around ending the ban in exchange for lowering domestic corn prices and ending the strike to prevent further economic problems.