The Undersecretary of Consumer Defense and Commercial Loyalty, an area that falls under the Ministry of Economy, has announced plans to conduct new studies on the value chains of some products in the basic basket as inflation continues to rise at an alarming rate. The Undersecretary wants to gather information about the factors that contribute to the high prices of staple foods that are consumed by families on a daily basis, such as oil, rice, and fruits and vegetables.
The value chain is a crucial aspect of understanding how companies create and develop their products, which allows them to charge higher prices for their products. By analyzing the value chain of essential foods for family consumption, the Undersecretariat hopes to determine the company’s competitive advantage and help consumers understand where they stand when it comes to pricing.
Recent reports have shown that food prices have increased by more than 300% from field to shelf in December 2023. Taxes also play a significant role in shaping these prices, with up to 25% of the final price being made up of taxes according to a report from the Chamber of Medium Enterprises (CAME).
These increases in food prices have had a significant impact on families’ budgets, especially those with lower incomes who allocate a larger percentage of their income towards purchasing these items. Producers have also been affected, as they are receiving only $1 for every $3.5 paid by consumers at the retail level.
Overall, this study aims to shed light on how companies create and develop their products while also providing valuable information for consumers about where prices come from and how they can better navigate their financial situation during these challenging economic times.