In November, the prices of food derived from agriculture multiplied by 3.6 times since they left the field, that is, from their origin until they reach their final destination, the gondola. This is reflected in the Origin and Destination Price Index (IPOD) prepared by the Regional Economies sector of the Argentine Confederation of Medium-sized Enterprises (CAME). According to this indicator, therefore, consumers paid $3.6 for every $1 received from producers of the 24 agricultural products that make up that basket.
In the same period, the producer’s participation in the final sale price rose, on average, to 26.5%. Pumpkin producers obtained the highest participation (52%) -due to the inclement climate in the production areas, such as high temperatures and lack of rainfall-, while the lowest occurred in carrots (7%).
What is the gap in fruit and vegetables and livestock?
The prices of the 19 Fruits and vegetables that make up the IPOD basket multiplied by 5.1 times in November, so the consumer paid $5.1 for every $1 the fruit and vegetable producer received.
In the case of the five products and by-products of animal origin participating in the basket paid for by the consumer 3.1 times more of what the manufacturer received, just like last month.
Among the 5 products with the greatest difference between prices from the field to the gondola are carrots (13.9 times), lemons (12.4), oranges (9), red apples (8.5) and courgettes (8.1).
As regards prices, carrots recorded a monthly drop of 1% in producer prices, while for the consumer they showed no variations; lemons had a monthly increase of 103.7% at the origin -due to the drought which especially affects Salta, which reduces the offer and increases prices- and of 24% at the destination.
An increase in production prices of 9% was observed in the orange tree, while in the gondola it was 17.5%; the red apple did not show variations in prices at origin, but increased by 12% at destination (due to the high incidence of energy consumption in the respective cold rooms); and courgettes, whose producer prices increased by 1.4%, but decreased by 30% for consumers compared to the previous month.
Among the products that have presented the smallest difference between the price received by the producer and that paid by the consumer, there are 2 products of animal origin and 3 fruit and vegetables.
The low gap between origin and destination of products and animal by-products is due to the fact that eggs (2.3 times) and chicken (2.4) generally have integrated production systems, which means that all actors in the respective value chains are part of the enterprise risk.
Furthermore, and as far as prices are concerned, chicken meat has not recorded monthly variations at the two extremes of the supply chain, but eggs have: they have recorded an increase of 1% at origin and 4.5% at destination.
In case of squash (1.9), the product with the smallest deviation For the second consecutive month, producer prices increased by 1% and consumer prices by 14.5%.
The round tomato (2.4), on the other hand, did not record changes in prices at origin, while at destination the drop was 6%. Strawberry (2.1), it has been noted a monthly increase in prices at origin of 61.5%, while at destination the increase reached 1%.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.