The Argentine Oilseed Crushers Union (SOEA) announced a strike to start on Monday April 29 for an indeterminate period, with multiple entities in the country mobilizing against the government’s proposed economic law reforms.
Roughly 80% of all crushers in the country are expected to take action, with market participants anticipating widespread impacts on the world’s biggest soybean meal and oil exporter’s crush and export activities, sources told Fastmarkets.
The government’s “Ley de Bases y Puntos de Partida” – which will start its discussion in Argentine Lower Chamber on Monday – proposes changes to the country’s taxes on labor wages, among other key points.
At the same time, workers from the National Agri-Food Health and Quality Service – an office from the government’s Secretariat of Agriculture, Livestock and Fisheries (Sagyp) responsible for inspecting the import and export of agricultural products – also announced a 72 hour strike starting on Monday 29 due to the same proposed economic law reforms.
Argentina’s Central Union is also expected to hold a protest on Wednesday May 1 against the reforms, with a general strike also called for May 9.
“Clearly, the objective of the strike[s] is to [put] pressure the government by hitting the source of dollars of the economy: the oilseed exports”, Javier Preciado Patiño, independent market analyst, said in a note sent to clients. “The workers’ strike will affect the commercialization of the grain (soybean), crushing and exports, until its resolution.”
Argentina is expected to export 24.4 million tonnes of soymeal and 4.8 million tonnes of soyoil during the 2023/24 market year, with soymeal exports accounting for 34.6% of the world’s total export share, while the country’s soyoil exports represent 42%, according to USDA’s WASDE published in April.