February 25, 2015
Isolated demonstrations begun by Brazilian truckers protesting the high cost of diesel fuel and unacceptable freight rates have continued for seven days and have spread across ten states. The truckers are blocking highways throughout the country and are not allowing the transportation of agricultural goods or fuel.
Access to the Port of Santos, the largest port in the world’s top soybean exporter, has been partially blocked. Currently soybeans are being loaded onto vessels, however a drop in deliveries to the port will disrupt exports. And at the country’s number two port of Paranagua, there is grain enough to fill vessels currently being loaded, however as of the morning of February 24, there were only 45 trucks waiting at the port compared to the usual 900.
The strike has also led to a shortage of diesel fuel in the country’s center-west grain belt causing some farmers to have to stop harvesting for lack of fuel.
In addition, the world’s largest poultry exporter, BRF has been forced to shut down two factories for lack of raw materials, and JBS SA, the world’s largest meat producer is shutting down eight factories because of the roadblocks.
President Dilma Rousseff called an emergency meeting stating that the government is prepared to open talks with the truckers regarding the extension of loan terms and the setting of freight rates, but will not lower diesel prices.
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