Government to analyze the value chains of basket products

The Ministry of Economy’s Undersecretary of Consumer Defense and Commercial Loyalty is set to launch new studies on the value chains of some products in the basic basket, amidst a surge in inflation. The aim is to gather information about the factors that contribute to the rising prices of staple foods, such as oil, rice, and fruits and vegetables.

The value chain refers to the sequence of activities that add value to a product or service. By analyzing a company’s actions during the creation and development of its products, it is possible to determine its competitive advantage and understand how much consumers are willing to pay for a certain product or service.

According to an official source, this analysis will help consumers make informed purchasing decisions and understand where prices are coming from. Additionally, it will provide producers with valuable insights into consumer behavior and preferences.

The Undersecretariat plans to begin by examining the value chains of essential foods for family consumption. Private sector surveys have also been conducted in recent years due to the high inflation rates seen in food prices. According to a recent report from the Chamber of Medium Enterprises (CAME), food prices multiplied by 3.5 times between December 2022 and December 2023 alone. Taxes were found to account for 25% of the final price of food according to the Agricultural Foundation for the Development of Argentina (FADA).

The increases in food prices have had a significant impact on family budgets, particularly those with lower incomes who spend more money on these products. Producers have also been affected as they struggle to keep up with rising costs while still maintaining profitability.

By Editor

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