The Undersecretary of Consumer Defense and Commercial Loyalty, which falls under the Ministry of Economy, is planning to conduct new research on the value chains of some products in the basic basket, in response to the galloping advance of inflation. An official from the Undersecretary stated that they need information about the instances in the formation of prices for the foods that have seen the most increase in the last year.
The value chain is the sequence of activities that add value to a product or service. The portfolio plans to monitor the actions that companies take during the process of creating and developing their products, in order to sell them at a higher price. This will help determine a company’s competitive advantage and be a useful tool for consumers to understand the amount merchants intend to charge for a certain product or service.
The Undersecretary plans to begin by analyzing the value chain of essential foods for family consumption, such as oil, rice, fruits, and vegetables. These types of surveys have also been conducted in the private sphere, given that food prices have been registering increases above general inflation.
According to a recent report, in 2023, food and beverages grew 251.3% compared to a Consumer Price Index (CPI) increase of 211%. The increase in food prices has a strong impact on the budget of families, especially those with lower incomes who allocate a greater percentage of their income to purchasing these products.
Producers received an average of 26.3% of final sales prices, with taxes comprising 25% of the final price of food, according to the Agricultural Foundation for the Development of Argentina (FADA).
These findings highlight the significant impact taxes have on production costs and the commercial chain.