Farmers protest at Cargill plant

Farmers protested outside a plant owned by leading exporter Cargill during the fifth day of a strike over government export duties that has paralyzed local grains markets.

The ruralists, who have been at odds with President Cristina Fernández de Kirchner for years, halted sales of corn, wheat and soy this week to protest a system of export quotas that they say allows millers and exporters such as Cargill to pay them low prices.

About 200 farmers blockaded Cargill's plant near the main grains port of Rosario City, Santa Fe province, with tractors for several hours, warning that further protests are possible if the government does not meet their demand to scrap the export quota system.

"We're going to propose a continuation of our measures if we don't get an immediate response (from the government) about wheat," said Eduardo Buzzi, head of the Argentine Agrarian Federation (FAA), one of the four farming groups leading the strike.

The current week-long strike is due to end at midnight on Sunday, but farm leaders have said they could repeat the freeze on grain sales or stage other protests to pressure the government.

Farmers say the system of export quotas lets millers and exporters pay farmers below the international price by sapping competition in the local market.

FAA member Oscar Principe said Cargill is "one of the companies making enormous profits from the government's farm policies."

Leading grains exporters have denied that they are responsible for the problems farmers have to sell wheat.

Argentina is the world's No. 1 exporter of soy-oil and soy-meal and the third-largest global supplier of soybeans. It is also a major wheat supplier and the No. 2 corn provider after the United States.

The farmers' strike comes nine months before a presidential election in which Fernández de Kirchner is expected to seek re-election.

A series of protests by farmers in 2008 diminished her popularity, rocked local financial markets and disrupted the nation's multibillion-dollar grains shipments at the height of the soy harvest.

The impact of this week's protests on surging global grains prices has been more muted because soy and corn harvesting has not yet started and as traders focus on dry weather linked to La Niña that is hurting crops on the Pampa plains.