South America Calling

Brazil Trucker Protest Continues Through Ninth Day

Brazilian truckers continued protests Thursday, further delaying deliveries of soybeans to ports, crushers and the pork and poultry industries.

As of mid-afternoon, blockades were detaining trucks at 97 points along highways in seven states with the most intense activity in the south of Brazil, Mato Grosso and Mato Grosso do Sul, according to the Federal Highway Police.

The protest extended into its ninth day, in spite of an agreement reached late Wednesday between the federal government and trucker representatives to end the strike.

The problem is that the leaders of the protest against fuel costs and falling freight rates are numerous and the government has admitted difficulty in entering into a contact with them all.

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On Thursday, Justice Minister Jose Eduardo Cardozo announced the government would impose fines of between R$5,000 ($1,740) and R$10,000 ($3,480) per hour on truckers who have blocked roads.

Public prosecutors have obtained court injunctions to clear roads in nine states, but actions to clear roads were limited Thursday.

The protest is already hampering the soybean harvest. Diesel is not reaching Mato Grosso farmers, who badly need the fuel for their combines.

Approximately 20% of Mato Grosso's soybean farmers have run out of diesel, and the remainder only have stocks for an average of five more days, according to a survey by the Mato Grosso Agricultural Economy Institute (IMEA) published Thursday morning.

As of Friday, Feb. 20, Mato Grosso soybean harvesting was 48% complete, and Brazil-wide, field work was 20% finished.

Meanwhile, the arrival of soybean and soymeal trucks at Santos and Paranagua ports has slowed to a trickle and port silo stocks are dwindling, raising concerns that ships may start being delayed. With access to grain limited, pork and poultry firms have suspended operations across the south of Brazil.

Brazil relies on trucks to transport the majority of its massive soy crop to crushers, to the meat industry and to port.

Alastair Stewart can be reached at alastair.stewart@dtn.com

(CZ)

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