The Undersecretary of Consumer Defense and Commercial Loyalty is planning to conduct new studies on the value chains of essential foods for family consumption, such as oil, rice, and fruits and vegetables. This is in response to the galloping advance of inflation and the need to gather information about the formation of prices of the foods that people consume the most and have increased a lot in the last year.
According to an official source, this analysis will help determine the company’s competitive advantage and is also a useful instrument for consumers to understand where the amount that the merchant intends to charge for a certain product or service comes from. The value chain is the sequence of activities that add value to a product or service. By monitoring the actions that companies take during this process, it becomes possible to understand their pricing strategies and gain insight into their competitiveness.
The Undersecretariat will begin by analyzing the value chain of essential foods for family consumption, which are also subject to increases above general inflation. From private sector sources, similar surveys have been carried out in response to this trend. A recent report from the Chamber of Medium Enterprises (CAME) highlights how food prices multiplied by 3.5 times from field to shelf in December 2023, with taxes accounting for 25% of the final price. This increase has had a significant impact on families’ budgets, especially those with lower incomes who allocate a greater percentage of their income towards purchasing these products. Producers have also been affected as they received only $3.5 for every $1 they received from consumers in December 2023.