The Ministry of Economy’s Undersecretary for Consumer Defense and Commercial Loyalty is planning to conduct new studies on the value chains of essential foods for family consumption, such as oil, rice, and fruits and vegetables. This is in response to the galloping advance of inflation and the increases in food prices that have been registering above general inflation.
The value chain is a sequence of activities that adds value to a product or service. The job of the portfolio will be to monitor the actions that companies take during the process of creating and developing their products, which allow them to sell them at a higher price. According to an official source, this analysis helps determine a company’s competitive advantage and is also a useful tool for consumers to understand where the amount that merchants intend to charge for certain products or services comes from.
In December 2023, Agri-food prices multiplied by 3.5 times from the field to the shelf, according to a recent report from the Chamber of Medium Enterprises (CAME). The report also highlighted the impact taxes play in shaping prices, with 25% of the final price of food being made up of taxes according to the Agricultural Foundation for the Development of Argentina (FADA).
The increases in food prices have a strong impact on families’ budgets, especially those with lower incomes who allocate a greater percentage of their income to purchasing these products. Producers are also affected as they receive less money from consumers than what they pay out. This highlights the need for further research into value chains and how they affect both producers and consumers alike.