• Mon. Feb 26th, 2024

Uncovering the Truth Behind Food Prices: A Study by the Undersecretary of Consumer Defense and Commercial Loyalty

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 essential foods in the basic basket. The goal is to gather information about the pricing processes of these products that are consumed by most people and have experienced significant price increases in the past year.

The value chain refers to the sequence of activities that create value for a product or service. By monitoring the actions taken by companies during this process, the portfolio aims to determine their competitive advantage and help consumers understand where prices come from.

The Undersecretariat will begin its analysis with essential foods for family consumption, such as oil, rice, and fruits and vegetables. Private surveys have also been conducted in this area due to food’s high inflation rate.

According to a recent report from CAME, agri-food prices multiplied by 3.5 times between December 2023 and the shelf. Taxes played a significant role in shaping these prices, with 25% of the final food price being made up of taxes according to FADA.

Increases in food prices have a substantial impact on families’ budgets, particularly those with lower incomes who allocate more of their income towards purchasing these products. Producers are also affected, as they receive only $3.5 for every $1 they produce when sold at retail prices in December 2023.

Overall, this study aims to provide valuable insights into how food pricing works and help consumers make informed decisions when purchasing essential products.

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