More than 100 grains cargo ships delayed by Argentine port workers strike

By Hugh Bronstein and Maximilian Heath

BUENOS AIRES, Dec 21 (Reuters) – More than 100 cargo ships were kept from loading agricultural goods in Argentina on Monday, as a wage strike by grains inspectors and oilseed workers stretched into its second week, paralyzing exports from one of the world’s main bread baskets.

Argentina is the No. 1 international exporter of soymeal livestock feed used to fatten hogs and poultry from Europe to Southeast Asia. Contract talks between workers and export companies have broken down over compensation packages, with both sides accusing the other of intransigence.

“The strike continues without any expectation that negotiations will restart over the short term. We have more than 100 vessels waiting to be loaded,” Gustavo Idigoras, head of Argentina’s CIARA-CEC export companies chamber, told Reuters.

The strike started on Dec. 9 by the Argentine oilseed workers federation, the Urgara union representing port-side grains inspectors and the SOEA soy crushing workers union, based in the northern part of Argentina’s main grains hub of Rosario, which ships about 80% of Argentina’s farm exports.

“There is high participation in the strike by our members and every time that the companies make a statement it generates more anger and much more support from the people,” said Urgara spokesman Juan Carlos Peralta.

Urgara negotiates with the Private Commercial Ports Chamber, or CPPC, while the federacion and SOEA negotiate with CIARA. Peralta said that Urgara has struck individual deals with some export companies, but that stark differences remain in negotiating positions and that a comprehensive deal was far off.

With soy and corn, Argentina’s two main cash crops, currently being planted, December is not peak export season.

Farmers have been hanging onto all the stocks they can this year, waiting for further weakness expected in the local peso before selling. The currency has weakened 27.9% this year to 83.15 per U.S. dollar.

(Reporting by Maximilian Heath, writing by Hugh Bronstein, editing by Susan Fenton)

(([email protected]; 5411 4318 0655; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.