Striking Argentine farmers await government offer

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BUENOS AIRES, March 31 | Mon Mar 31, 2008 10:57am EDT

BUENOS AIRES, March 31 (Reuters) - Argentine farmers angry over a tax hike on grains exports manned roadblocks on Monday as the government tried to end a 19-day strike that has emptied meat counters, halted shipments abroad and provoked a political crisis.

Argentina's four biggest agriculture groups renewed their nationwide strike on Saturday, a day after talks with the government broke down. During their protest, farmers have stopped beef and grains sales and blocked trucks carrying farm goods.

Local media said on Monday the government would announce a package of measures aimed at easing the tax burden on small-scale farmers in the country, a leading global supplier of soybeans, corn, wheat and beef.

The strike has handed center-left President Cristina Fernandez de Kirchner her stiffest political challenge since taking office in December.

It has paralyzed grains exports, raising concern in key buyers such as China and Europe and forcing some exporters to renege on their contracts. Ships are standing idle in ports and soy crushers are almost without stock.

The government was expected to meet with farmers on Monday, but at least one farm group leader said it was unclear if the meeting would take place.

"There were indications that today there was going to be a meeting. We're waiting for them to confirm the time," Silvio Corti, director of the Agrarian Federation, told Reuters.

"We know the government is working on some announcements, basically to help small farmers recover their profitability. But we don't know if they'll be enough."

The renewed protests have deepened fears of further food shortages in one of the world's biggest agricultural producers, where supermarkets across the country are reporting scant supplies of meat and dairy products. (Writing by Kevin Gray; Editing by Kieran Murray)

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