President Javier Milei is facing growing impatience from Argentina's powerful farmers as he renews his vow to eliminate export taxes and rescue the country's agricultural industry [231173b2]. Milei's presidency is now seven months in, but farmers are still grappling with currency controls, export taxes, and an uncompetitive exchange rate [231173b2]. The left-leaning Peronist administrations have historically taken an estimated $200 billion from the agricultural sector, leaving farmers frustrated and seeking relief [231173b2].
Argentina's agricultural industry is a significant contributor to the country's GDP, accounting for 20% of its economic output [231173b2]. However, despite being one of the largest livestock and grain producers globally, Argentina is burdened by high debt and inflation rates [231173b2]. Farmers are giving Milei more time, but their patience is wearing thin as they face obstacles and a drop in consumption [231173b2].
President Milei's recent economic measures, aimed at balancing the government's books and quelling inflation, have frustrated farmers [231173b2]. They argue that these measures come at the cost of unleashing the free market and eliminating unfair taxes on agricultural exports [231173b2]. Farmers are stockpiling exportable grain and soybeans due to reduced export competitiveness, while local demand has dropped due to extreme austerity measures and high inflation [231173b2]. Beef consumption in Argentina is currently at its lowest recorded level in history [231173b2].
The Argentine Rural Confederation has criticized the government's failure to address the issue of unfair taxes on agricultural exports and provide clarity on recent economic measures [231173b2]. Farmers are seeking clarification and relief as they await better economic conditions and the fulfillment of President Milei's promises [231173b2].