VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1410/01 2881432
ZNR UUUUU ZZH
R 141432Z OCT 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 2238
INFO RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE

UNCLAS BUENOS AIRES 001410 
 
USDA FOR FAS/OA/OCRA/ONA/OGA/OFSO 
 
SENSITIVE 
 
SIPDIS 
 
 
E.O. 12958:  N/A 
TAGS: EAGR ECON EINV PGOV ELAB PHUM AR
SUBJECT: ARGENTINA: SIX-DAY AGRICULTURAL STRIKE ENDS WITH LITTLE 
FANFARE 
 
REF: Buenos Aires 1363 
 
¶1. (U) Summary:  Without the fanfare of previous strikes, the 
agricultural sector ended its latest strike against GOA agricultural 
policies on Wednesday, October 8 - at least for now.  Compared to 
other agricultural protests in the previous seven months, this 
strike was a non-event, as it attracted less turnout than 
anticipated/hoped by the sector.  Agricultural leaders called the 
strike a success in that the sector showed it can shut down 
commodity sales without cutting roads.  They privately recognized, 
however, that the government had not been affected by the strike. 
One day after the close of the six-day strike, Agriculture Secretary 
Carlos Cheppi announced the reform package anticipated since last 
week (Reftel).  The package primarily consisted of limited subsidies 
and credits, and was met with little enthusiasm by producers who 
called it "more of the same."  The plan did not make changes to 
export taxes, as was hoped, and did not address farmers' concern 
with dairy and beef cattle production issues.  Farm leaders said 
they will meet October 15 to determine what actions/strategy they 
will adopt in the future.  End Summary 
 
--------------------------------------------- - 
STRIKE ENDS WITHOUT IMPACT OF PREVIOUS RALLIES 
--------------------------------------------- - 
 
¶2.  (U) Without the fanfare of previous strikes, the agricultural 
sector ended its latest strike against GOA ag policies on Wednesday, 
October 8 - at least for now.  Agricultural leaders staged a final 
rally in San Pedro, Buenos Aires province (the same spot where the 
first strike against variable export taxes occurred in March) and a 
march at the Argentine Congress to mark an end to their six-day 
action. 
 
¶3.  (U) Rallies during the strike, as well as both closing events on 
Wednesday, showed less than anticipated/hoped turnout by the sector. 
 Approximately 5,000 producers (almost all small farmers and members 
of the Argentine Agricultural Federation (FAA)) attended the rally 
in San Pedro -- a far cry from the sector's 250,000-strong 
demonstration in Buenos Aires on July 15.  The march on Congress 
drew an estimated 2,000, including both producers and members of 
leftist social organizations.  Middle-class support for the rural 
sector seen previously in the months-long conflict was almost 
non-existent during this latest strike effort. 
 
¶4.  (U) Despite the limited participation in protests, agricultural 
leaders called the strike a success in that the sector showed it can 
shut down commodity sales without cutting roads.  Cattle and grain 
sales were sharply lower during the strike.  Press reports indicate 
that ag leaders privately recognized, however, that the government 
had not been affected by the strike.  In public, the ag leaders did 
not speak to their concern about the limited participation, and 
continued to criticize the GOA for lack of movement on their issues. 
 
 
------------------------------------ 
OFFICIALS ANNOUNCE AGRICULTURAL PLAN 
------------------------------------ 
 
¶5.  (U) One day after the closing events of the six-day strike 
(Thursday, October 9), Agriculture Secretary Carlos Cheppi announced 
the reform package awaited since last week (Ref).  The Plan consists 
of subsidies for the agricultural sector totaling approximately 3.4 
billion pesos.  The money will be distributed in the form of: ARP 1 
billion for credit programs; ARP 900 million for infrastructure 
projects; ARP 718 million for family agriculture; ARP 300 million 
for regional economic issues; ARP 250 million for the tobacco 
sector; and ARP 200 million for drought assistance to producers, of 
which ARP 50 million will be directed to wheat farmers and ARP 150 
million for cattle farmers. 
 
¶6.  (U) Agricultural leaders were not surprised by the GOA 
announcement and are skeptical about GOA commitment to make 
fundamental changes sought by producers.  Ricardo Buryaile, Vice 
President of the Argentine Rural Confederation, stated that the plan 
announced was "more of the same," and done "for the front page of 
newspapers to make the public believe the government is helping 
producers."  The plan did not resolve the issue of export taxes, for 
which farmers want reductions for small farmers, especially in the 
wake of the current global financial crisis.  GOA officials stated 
that they will not make adjustments to export taxes at this time and 
that to do so would be "risky" for the country due to the current 
financial crisis.  Buryaile also pointed out that the GOA did not 
address, as was hoped and expected, the fundamental problems for 
beef and dairy farmers, which according to producers are onerous 
government intervention in the market and export restrictions.  Farm 
leaders said they would meet October 15 to determine what 
actions/strategy they will adopt in the future. 
 
------- 
Comment 
------- 
 
¶7. (SBU) Argentina's fifth agricultural strike against GOA policies 
since March shows that farmers have not/not been appeased by 
Congress' rejection of the GoA's variable export tax proposal and 
the limited movement to reduce export restrictions.  Nor are they 
happy with the recently announced subsidy package.   It would 
appear, however, that there has been a clear weakening of 
middle-class support for the agricultural sector, perhaps due to the 
distraction of a growing global financial crisis and plummeting 
commodity prices.  A rally of 5,000 farmers in a distant rural town 
is not exactly a show of force.  It would appear that the farmers 
have lost much of their momentum to pressure GOA movement on their 
issues, which could make a successful negotiation with the 
government more difficult.    End Comment. 
 
WAYNE