News in Brief:
– Workers in Argentina’s soy-processing plants are on strike during the harvest period, protesting proposed changes in income-tax regulations and work rules under President Javier Milei’s reform legislation.
– The strike is disrupting soybean shipments and processing, potentially impacting global agricultural markets and supply chains.
Argentina, the world’s largest supplier of soy meal and soy oil, is currently grappling with a significant challenge as workers in soy-processing plants initiate a strike during the crucial harvest period.
Soybeans production is a cornerstone of Argentina’s agricultural economy, with soy meal essential for livestock feed and soy oil used widely in food and biofuels. The country’s soy exports play a pivotal role in global agricultural markets, influencing prices and supply chains worldwide.
The strike stems from proposed changes in income-tax regulations and work rules under President Javier Milei’s reform legislation. Workers and labour groups, such as SOEA and the Federation of Oilseed Industry Workers, argue that these reforms could lead to adverse impacts on their livelihoods, labeling them as regressive rather than progressive reforms.
The strike has already disrupted operations at key ports like San Lorenzo, where about 70% of Argentine soy shipments originate. Companies like Cargill Inc, Glencore’s Viterra Inc, and others have faced challenges due to delayed harvesting caused by heavy rains and now the labour strike, compounding logistical difficulties.
If the strike persists, it could severely hamper the processing and shipment of Argentine soy meal and soy oil, echoing similar disruptions seen in December 2021 when processing plunged to historic lows due to industrial action.
Farmers and agricultural businesses worldwide depend on Argentine soy products, and any prolonged disruption could lead to increased prices and supply chain uncertainties. This situation underscores the interconnectedness of global agricultural markets and the vulnerability of supply chains to localised labour disputes.
