In the middle of the heat wave and the considerable drop in agricultural production, in the month of February there was a strong mismatch between what food producers charge and what consumers pay on the gondola. This was boosted by a drop in the purchasing power of citizens, and the loss of green leafy vegetables and fruits.
A report from the Regional Economies sector of the Argentine Confederation of Medium Enterprises (CAME) indicated through the Origin and Destination Price Index (IPOD) that last month the prices of agri-food increased 3.1 times the field ( origin) to the gondola (destination). That is, consumers paid $3.1 for every $1 that producers received.
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On average, the participation of the producer explained 33.6% of the final sale prices. The greatest participation was held by the producers of pepper (88.5%), due to the high temperatures that burned green leafy vegetables and caused a jump in the prices of origin, while the lowest was for those of tangerine (13.8%).
The gap in fruit and vegetable products and in farmers
fruit and vegetable IPOD: From the field to the shelf, the prices of the 19 fruits and vegetables that make up the IPOD basket multiplied by 3.9 times in February, for which the consumer paid $3.9 for every $1 that the fruit and vegetable producer received.
Livestock IPOD: For the 5 livestock products and by-products that make up the IPOD basket, the consumer paid 2.9 times more than what the producer received.
Major and minor IPOD gaps for February
1. Products with the largest monthly IPOD gaps
The tangerine (7.2 times), the Red Apple (6,4), the lemon (5,7), the garlic (5,3) and the chard (5.1), were the 5 products that presented the greatest difference between the prices of origin and destination. The tangerine it was the product with the greatest gap between the producer and the consumer. Prices only registered variations at one end of the chain: the consumer. While there was no increase in origin, this citrus had a monthly increase in shelves of 34%.
Regarding vegetables, the garlic registered a 14.3% drop in producer prices -high supply in February and March- and did not show variations on shelves, while the price of chard it increased 6% at origin and 43% at destination, due to recurring droughts and high temperatures that burned green leafy vegetables, especially in the green belts of La Plata and Santa Fe.
2. Products with lower monthly IPOD gaps
Among the products that presented the smallest difference between the price received by the producer and the one paid by the consumer, there are 2 products of animal origin and 3 horticultural products.
In the case of pepper (1.1 times), product with the lowest gap of the month, while producer prices increased by 70.1%, consumer prices fell by 24%. The prices of the lettuce (1,4) and the broccoli (1.9), for their part, registered an increase at origin of 93.5% and 76.1%, respectively -due to high temperatures that burned green leafy vegetables-, while at destination they decreased 2.5% in the first case, and increased 12.5% in the second.
Regarding the low field-shelf gap of livestock products and by-products, the eggs (2) and the chicken (1,6), in general, have integrated production systems, which means that all the actors in their respective value chains are part of the business risk. This item was particularly affected by the appearance of bird flu.
The full report can be accessed by clicking here.