Argentina Soy Strike Threatens Global Supply Amid Harvest Surge

Key Takeaway

• Argentine soy-processing plant workers strike, threatening the world's largest soy meal and oil supply as harvest accelerates.
• The strike protests against income-tax and work-rule changes, impacting major companies like Cargill Inc. and Glencore’s Viterra Inc.
• A prolonged strike could severely disrupt global shipments, echoing December 2021's processing drop to a two-decade low.

Strike Hits Argentine Soy Sector

Workers in Argentine soy-processing plants have initiated a strike, coinciding with the soy crop collection period. This labor action, starting Monday, is in response to proposed income-tax and work-rule changes by President Javier Milei. The strike, led by SOEA and the Federation of Oilseed Industry Workers, threatens to halt operations in Argentina, the leading global supplier of soy meal and soy oil. The Parana port district San Lorenzo, responsible for about 70% of Argentine soy shipments, is significantly impacted.

Impact on Global Supply

The strike's timing is critical as it disrupts the soy processing industry, potentially affecting global supplies of soy meal and oil. Most soy plants along the Parana River, including those operated by major agribusinesses like Cargill, Viterra, and Bunge, have ceased accepting truck deliveries. This halt in operations recalls the December 2021 strike, which saw processing drop to a two-decade low, underlining the potential for significant disruptions in global soy markets.

Legislative Controversy

The labor action is a direct protest against President Milei's reform legislation, currently under debate in the legislature. The proposed changes, criticized by labor groups as a regression rather than modernization, have sparked widespread discontent among workers. The Federation of Oilseed Industry Workers has publicly denounced the reforms, emphasizing the strike's role in opposing what they view as detrimental policy changes.

Management Quotes

• Martin Morales, Union Official:

  "SOEA, a labor group representing workers at plants in Parana port district San Lorenzo, which accounts for about 70% of Argentine soy shipments, went on strike early Monday."

• Ernesto Torres, Spokesman for the Federation of Oilseed Industry Workers:

  "The labor reform included in the bill isn’t anything like a modernization; it’s a regression."