Buenos Aires – January 02, 2021
Argentina’s grain inspectors’ union, Urgara, said on Thursday that its members will continue to strike over the weekend after failing to strike a wage deal despite two meetings with the Chamber of Private and Commercial Ports (CPPC).
The strike comes after Argentina’s soy crushing companies signed a contract with oilseed workers’ unions on Tuesday night, ending a stoppage that delayed the loading of ships and stalled soy crushing since workers walked off the job on Dec. 9.
“Next Monday we will have a fresh meeting with the CPPC and we hope to be able to reach an agreement that meets the needs of the workers who stood by throughout the pandemic to safeguard foreign exchange income and the country’s economic growth,” said Urgara in a statement.
The union wants salary increases and an extraordinary bonus for its members having worked during the COVID-19 crisis. Argentina’s economy has suffered very high inflation over successive years, with the pandemic exacerbating the crisis.
The companies that make up the CPPC are the same international agro-export companies that reached the agreement on Tuesday with the oilseed workers’ unions.
Urgara’s strike has the most significant impact on Argentina’s southern ports, Bahía Blanca and Necochea, since companies operating out of the northern agro-port hub of Rosario – which handles 80% of Argentina’s agricultural products – tend to hire grain receivers who are not associated with Urgara.
In addiction, as we have said yestarday, Argentina will suspend sales of corn for export until Feb. 28, the agriculture ministry said on Wednesday, announcing the surprise move as part of the government’s effort to ensure ample domestic food supplies.
Argentina is the world’s top exporter of soymeal and a major international soybean, wheat and corn suppliers.
The move by the world’s No. 3 corn supplier was a sign of tightening global food supplies during the COVID-19 pandemic.
“This decision is based on the need to ensure the supply of grain for the sectors that use it as a raw material for the production of animal protein such as pork, chicken, eggs, milk and cattle, where corn represents a significant component of production costs,” the statement of ministry said.
Argentina’s government is struggling to control food price inflation and help low-income families contending with an economy shrinking during the pandemic.
As we said, buyers can still book corn from Argentina, but only for a shipping date March 1 or later.
Argentina is also a big international soybean and wheat supplier, as well as the world’s top exporter of soymeal livestock feed.
“To date, 34.23 million tons of corn from the 2019/20 season has been authorized for export, out of a exportable total of 38.50 million tonnes,” the statement said.
“The objective of the measure is that the remaining 4.27 million tons remain available for domestic consumption, in order to ensure the supply during the summer months when the supply of cereal tends to be scarce,” added the statment.
