Saturday, February 13, 2010

Meat Trade News Daily | Argentina - Beef prices rise 140% since December

February 14, 2010

Argentina's government has courted more controversy after a meeting between President Cristina Fernandez de Kirchner and farmers' representatives deteriorated into an angry war of words over who is to blame for higher beef prices.

The government is already embroiled in an unprecedented row after its attempted use of Central Bank reserves to pay off Argentina's debt, which led to the removal of Central Bank Gov. Martin Redrado and a public reproach from the High Court.

At the farmers' meeting, Fernandez conceded that meat prices in Argentina had risen beyond reasonable levels but blamed the hikes on profiteering by the livestock producers.

The president's comments provoked an immediate volley of angry retorts from the farmers' representatives, who said her comments were offensive and did not take account of the government's own policies as the cause of the hikes.

Recent increases in food prices, coupled with shortages of electricity and other outages, have heightened discontent in Argentina. The rising prices of beef, Argentina's staple diet, have caused widespread outrage that the government so far has been unable to deal with, choosing instead to blame one or other sector of the economy.

Lack of progress on poverty-reduction programs for Argentina's outlying areas has also eroded the government's popularity.

Added to that has been public anger over charges the president's spouse and former president, Nestor Kirchner, dabbled in insider trading while buying $2 million in U.S. currency soon after the 2008 financial crisis. Kirchner has denied any wrongdoing, but opposition critics of Fernandez have fanned anti-government sentiment and latent resentment of the presidential couple's financial dealings has given rise to published comments and criticism in the country's print and broadcast media. READ MORE

http://www.meattradenewsdaily.co.uk/news/120210/argentina___beef_prices_rise__since_december.aspx