Protests in Argentina have halted soybean processing at all plants in the country

A union of workers in Argentina has initiated a strike over wage disputes, temporarily paralyzing operations at all soybean oil plants, Reuters reported. The impact of the strike threatens to delay shipments and drop exports from the world’s largest exporter of soybean meal and oil.

As specified, the strike was initiated by workers who are members of the SOEA and Oilseed Workers Federation unions.

“A joint strike has begun at all soybean oil plants in the country … due to the lack of agreement in collective wage negotiations,” a statement from members of the SOEA union and the Federation of Oilseed Workers said.

According to shipping agency Nabsa, the strike also affected a number of ports, including those of Argentina’s largest processors such as Viterra Inc., Cargill Inc. and Louis Dreyfus Co.

Although Argentina’s chronic inflation rate of more than 270% is slowing, official data show consumer prices still rose 80% in the first half of this year alone.

Argentina is one of the world’s largest export centers for processed soybeans and the world’s largest supplier of oilseed derivatives, which are widely used in a variety of industries for products ranging from food to biodiesel.

Gustavo Idigoras, head of the Ciara processors’ association, which is negotiating with the workers, said the delayed shipments are costing Argentina about $50 million a day and also undermining the country’s reputation as a reliable global supplier.

With negotiations at an impasse, there is no immediate end to the strike.

SOEA represents workers in San Lorenzo, a Paraná River port district that accounts for about 70% of Argentina’s soybean supply. The Oilseed Industry Federation unites workers at plants elsewhere on the Paraná and the Atlantic coast.

Tags: soybean, Argentina