Truce Suspends Argentinean Export-Tax Farmer Strike
Truce Suspends Argentinean Export-Tax Farmer Strike
Argentine farmers have suspended their three-week-long strike in protest of a 44 percent export tax on commodities, but warn they will renew highway blockades in 30 days if negotiations with the government of President Cristina Fernandez fail. Media in Argentina reported that shortages of meat, milk and produce grew more acute as farmers blockaded the roads. While the government’s customs agency denied beef exports had stopped, stocks reportedly dwindled as ranchers refused to send cattle to market.
Thousands of people took to the streets in Buenos Aires and around the country this week in support of the striking farmers, but President Fernandez, held apro-government rally in response. Little farm produce has made it to stores since March 13. Food is reportedly scarce in the capital and food exports of all kinds have all but ceased.
Fernandez offered transport subsidies, credits for dairy farmers and tax rebates for 62,000 small soybean farmers, but the strikers rejected the concessions. They want her to turn back the tax hike on soy exports that increased the duty from 35 percent to a new variable rate that currently translates to 40 percent. Fernandez contends Argentina is in danger of converting too much of its land to soy for export, displacing domestic staples wheat and beef.
Argentine beef producers have been challenged by export restrictions since March 2006, and the government’s export policy has been deemed the largest threat to their industry. Exports to the EU under the Hilton quota (28,000 metric tons or 61.7 million pounds), however, have been excluded from the export restrictions. Fueled by the EU shortage due to the ban on Brazilian beef imports, the average FOB value of Hilton quota rump and loin exported in February increased to $14,437 per metric ton, a 17 percent increase over January and a 42.5 percent increase over February 2007 values. February exports under the Hilton quota (2,477 metric tons or 5.4 million pounds) were mainly bound for Germany, the Netherlands and Italy while Russia, Chile and Israel were the top destinations for the rest of Argentina’s beef exports (totaling 22,004 metric tons [48.5 million pounds] at $3,883 per metric ton).
Argentina’s beef exports increased 53 percent in the first two months of 2008 and totaled 52,215 metric tons (115.1 million pounds). Russia, the EU and Chile were Argentina’s largest beef markets last year, but exports to Russia fell by 45 percent as Brazil regained its dominant market share. Last year, Argentina’s exports to the EU grew by 9 percent in volume (77,544 metric tons or 170.9 million pounds) and 26 percent in value to $624 million. Of total exports to the EU, about 50,000 metric tons (110.2 million pounds) was chilled beef and 21,000 metric tons (46.3 million pounds) was prepared/preserved (which is also outside Argentina’s beef export restrictions). Argentina was the second-largest beef supplier to the EU market, following Brazil, and accounting for 17 percent of total EU beef imports. There are now rumors that Argentina’s government will reduce that country’s beef exports from 40,000 metric tons (88.1 million pounds) per month to 24,000 metric tons (52.9 million pounds) or even suspend exports, as it did in March 2006 for 180 days. Hilton and processed beef are not counted in the export quota.
South Korea
South Korean President Faces Election Challenge From Within
South Korean President Lee Myung-bak, who took office on Feb. 25 with the promise of a “Pragmatic Administration” now faces a challenge in the April 9 National Assembly election from within his own party. Ex-Grand National Party (GNP) Chairwoman Park Keun-hye, daughter of the late President Park Chung-hee, remains in the party but is supporting a slate of deselected-GNP candidates as independents. Since losing the presidential nomination to President Lee, she is now at odds with the GNP over a candidate selection process which has eliminated many of her supporters as GNP candidates for the National Assembly. Ms. Park was credited with saving the GNP from disaster at the last general election when the Uri party took power in a backlash against the impeachment of then President Roh Moo-hyun..
Neither access for U.S. beef imports nor the U.S.-South Korea Free Trade Agreement (FTA) is a prominent issue, and a victory by the GNP is not expected to adversely affect either one, although it is still hoped that the FTA will be approved by the outgoing legislature.
A total of 1,119 candidates — including 127 independents, a slightly smaller number than at the last election — will contest 299 seats
In 2007, the U.S. exported 9,763 metric tons of pork (including variety meat) and 3,896 metric tons of beef (including variety meat) to South Korea.
Russia
Russia Adds Eligible Cold Storages To Beef List
Russia has added additional cold storages to its list of establishments that are eligible to ship beef and beef products to Russia. See the online FSIS Export Library for details.
Truce Suspends Argentinean Export-Tax Farmer Strike
Argentine farmers have suspended their three-week-long strike in protest of a 44 percent export tax on commodities, but warn they will renew highway blockades in 30 days if negotiations with the government of President Cristina Fernandez fail. Media in Argentina reported that shortages of meat, milk and produce grew more acute as farmers blockaded the roads. While the government’s customs agency denied beef exports had stopped, stocks reportedly dwindled as ranchers refused to send cattle to market.
Thousands of people took to the streets in Buenos Aires and around the country this week in support of the striking farmers, but President Fernandez, held apro-government rally in response. Little farm produce has made it to stores since March 13. Food is reportedly scarce in the capital and food exports of all kinds have all but ceased.
Fernandez offered transport subsidies, credits for dairy farmers and tax rebates for 62,000 small soybean farmers, but the strikers rejected the concessions. They want her to turn back the tax hike on soy exports that increased the duty from 35 percent to a new variable rate that currently translates to 40 percent. Fernandez contends Argentina is in danger of converting too much of its land to soy for export, displacing domestic staples wheat and beef.
Argentine beef producers have been challenged by export restrictions since March 2006, and the government’s export policy has been deemed the largest threat to their industry. Exports to the EU under the Hilton quota (28,000 metric tons or 61.7 million pounds), however, have been excluded from the export restrictions. Fueled by the EU shortage due to the ban on Brazilian beef imports, the average FOB value of Hilton quota rump and loin exported in February increased to $14,437 per metric ton, a 17 percent increase over January and a 42.5 percent increase over February 2007 values. February exports under the Hilton quota (2,477 metric tons or 5.4 million pounds) were mainly bound for Germany, the Netherlands and Italy while Russia, Chile and Israel were the top destinations for the rest of Argentina’s beef exports (totaling 22,004 metric tons [48.5 million pounds] at $3,883 per metric ton).
Argentina’s beef exports increased 53 percent in the first two months of 2008 and totaled 52,215 metric tons (115.1 million pounds). Russia, the EU and Chile were Argentina’s largest beef markets last year, but exports to Russia fell by 45 percent as Brazil regained its dominant market share. Last year, Argentina’s exports to the EU grew by 9 percent in volume (77,544 metric tons or 170.9 million pounds) and 26 percent in value to $624 million. Of total exports to the EU, about 50,000 metric tons (110.2 million pounds) was chilled beef and 21,000 metric tons (46.3 million pounds) was prepared/preserved (which is also outside Argentina’s beef export restrictions). Argentina was the second-largest beef supplier to the EU market, following Brazil, and accounting for 17 percent of total EU beef imports. There are now rumors that Argentina’s government will reduce that country’s beef exports from 40,000 metric tons (88.1 million pounds) per month to 24,000 metric tons (52.9 million pounds) or even suspend exports, as it did in March 2006 for 180 days. Hilton and processed beef are not counted in the export quota.
South Korea
South Korean President Faces Election Challenge From Within
South Korean President Lee Myung-bak, who took office on Feb. 25 with the promise of a “Pragmatic Administration” now faces a challenge in the April 9 National Assembly election from within his own party. Ex-Grand National Party (GNP) Chairwoman Park Keun-hye, daughter of the late President Park Chung-hee, remains in the party but is supporting a slate of deselected-GNP candidates as independents. Since losing the presidential nomination to President Lee, she is now at odds with the GNP over a candidate selection process which has eliminated many of her supporters as GNP candidates for the National Assembly. Ms. Park was credited with saving the GNP from disaster at the last general election when the Uri party took power in a backlash against the impeachment of then President Roh Moo-hyun..
Neither access for U.S. beef imports nor the U.S.-South Korea Free Trade Agreement (FTA) is a prominent issue, and a victory by the GNP is not expected to adversely affect either one, although it is still hoped that the FTA will be approved by the outgoing legislature.
A total of 1,119 candidates — including 127 independents, a slightly smaller number than at the last election — will contest 299 seats
In 2007, the U.S. exported 9,763 metric tons of pork (including variety meat) and 3,896 metric tons of beef (including variety meat) to South Korea.
Russia
Russia Adds Eligible Cold Storages To Beef List
Russia has added additional cold storages to its list of establishments that are eligible to ship beef and beef products to Russia. See the online FSIS Export Library for details.