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The gap between what the consumer pays and what the producer receives has fallen

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The price gap between what the consumer paid and what the producer received in the field for their agricultural products fell by 5 percent in September, so there was an improvement after five continuous months of increase in that indicator, reported today the Argentine Confederation of Medium Enterprises. This was given, according to CAME, by an improvement in producer prices.

The consumer paid, on average, 5.9 times more than the producer charged for these foods, while the producer’s share in sales prices rose to 26.4%.

The monthly drop in the Price Index of Origine and Destination (IPOD), when product seasonality is taken into account, was driven by a 13.5 percent increase in producer prices, while consumer prices rose 5.6 percent in local SME shops and 3.6% in hypermarkets.

Are price controls effective?

According to the 24 products surveyed, in 20 of them better prices could be found in SME retailers than in hypermarkets: broccoli, for example, maintained an important difference, since in greengrocers and warehouses the price per kilogram was 40 , 3% lower than hypermarkets, while milk followed, with an average price 24.7% lower in SMEs than in hypermarkets.

The products with the greatest monthly drop in their gaps were: strawberry, with a drop of 30.5%, carrot (-26.9%), zucchini (-26%) and broccoli (-24.6%), while those with the highest increases were round tomatoes (+ 50.8%) and cabbage (+ 13.8%).

The data comes from the IPOD prepared by the Regional Economies sector of CAME based on the prices of origin of the main production areas and more than 700 prices of each product at destination, surveyed in greengrocers and markets by a team of 30 surveyors. as well as by monitoring the online prices of the main hypermarkets in the country, during the second half of the month. (NA)


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