Government to analyze product value chains in the basket

Unveiling the Value Chains of Essential Foods: The Ministry of Economy’s Research to Tackle Rising Inflation

The Ministry of Economy’s Undersecretary of Consumer Defense and Commercial Loyalty is conducting new research on the value chains of some products in the basic basket, in response to rising inflation. According to an official from the Undersecretary, they need to gather information about the formation of prices for essential foods that have seen significant increases in the past year.

The value chain is a critical component of understanding how products are created and sold at a higher price. By monitoring companies’ actions during the process, it is possible to determine their competitive advantage and provide consumers with valuable insights into product pricing.

The Undersecretary plans to start by analyzing the value chain of essential foods for family consumption, such as oil, rice, fruits, and vegetables. These types of surveys have been conducted before due to rising food prices above general inflation. In 2023, food and beverages grew 251.3% compared to a CPI increase of 211%. This significant increase has had a considerable impact on families’ budgets, especially those with lower incomes who allocate a higher percentage of their income towards purchasing these products.

According to recent data from the Agricultural Foundation for the Development of Argentina (FADA), producers received an average of 26.3% of final sales prices, with taxes comprising 25% of the final price of food. These findings highlight how taxes can significantly impact production costs and influence product pricing in the commercial chain.

Overall, this research by the Undersecretary will help consumers make more informed decisions when purchasing essential foods while also providing valuable insights into how companies create and sell products at a higher price point within their value chains.

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