Argentina farmer strike hits import demand

27 March 2008 16:01  [Source: ICIS news]

LONDON (ICIS news)--A strike by local farmers opposing the Argentine government’s decision to raise export taxes on soybeans to 44% is suppressing demand for imported phosphate fertilizers, producers and traders said on Thursday.

It was estimated that up to 10m tonnes of corn and soya exports could be delayed as a result, in turn disrupting shipping logistics leading to delays in fertilizer importation from North Africa, Russia and the US.

Fertilizer traders and producers withdrew offers from the Argentine market this week.

However, the overall effect was expected to be shortlived, sources said.

“It won’t have any real effect long-term,” said one major US phosphate fertilizer producer.

“Every time a government meddles in the agricultural economy it spells trouble,” the producer said. However, he added that, “the fundamentals in the oil and grain seeds markets are incredibly strong.”

Argentina and other Latin American markets needed to buy fertilizer, he added.

Argentina imported more than 510,000 tonnes of diammonium phosphate (DAP) fertilizer in 2007 along with 700,000 tonnes of monammonium phosphate (MAP).

By: Mike Nash
+44 20 8652 3214

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