• Fri. Mar 1st, 2024

The Undersecretary of Consumer Defense and Commercial Loyalty Tackles Inflation in Food Prices with New Studies on Value Chains

ByEditor

Feb 13, 2024
Government to analyze the value chains of basket products

The Undersecretary of Consumer Defense and Commercial Loyalty is planning to conduct new studies on the value chains of some products in the basic basket amidst the rapid rise of inflation. The Undersecretary aims to gather information about the factors that contribute to the formation of prices for the most consumed foods, which have increased significantly in the past year.

The value chain refers to the sequence of activities that add value to a product or service. The role of this portfolio is to monitor a company’s actions during the process of creating and developing its products, which enable it to sell them at a higher price. According to an official source, this analysis helps determine a company’s competitive advantage and is also an important tool for consumers to understand where their money goes when they buy certain products or services.

The Undersecretariat will start by analyzing the value chain of essential foods for family consumption, such as oil, rice, and fruits and vegetables. These types of surveys have also been carried out privately, given that food is an item that has been recording increases above general inflation.

A recent report from the Chamber of Medium Enterprises (CAME) highlighted that agri-food prices multiplied by 3.5 times from field to shelf in December 2023. The report also pointed out how taxes play a significant role 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 increase in food prices has had a significant impact on families’ budgets, especially those with lower incomes who allocate a greater percentage of their income towards purchasing these products. Producers are also affected as they receive only $3.5 for every $1 they charge consumers in December 2023.

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