The gap in fruit and vegetable products and in livestock
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 6.79 times in June, for which the consumer paid $6.79 for every $1 received by the fruit and vegetable producer.
Livestock IPOD: For the 5 livestock products and by-products that make up the IPOD basket, the consumer paid 2.67 times more than what the producer received.
Major and minor IPOD gaps for June
1. Products with the largest gaps
Among the 5 products that presented the greatest difference between the prices of origin and destination, are citrus fruits: orange (15.83 times), lemon (14.48) and Mandarin (10.86). During the month of June, they also had high gaps on zucchini (10.87) and the Red Apple (8.49).
In the case of citrus fruits, the producers explained the difference in field-gondola prices due to overproduction in Entre Ríos, directed towards the domestic market. While the price of origin tends to fall in the face of greater supply and lower demand, the destination price tends to rise and accompanies the inflationary context. Regarding the zucchini and the apple, the wide gap was caused by a strong increase in consumer prices.
The producers consulted agreed on the lack of reference prices, caused both by the shortage of diesel and by the instability of the price of the dollar, which impacts the price of the main inputs used in agricultural production.
2. Products with fewer gaps
Among the products that presented the least difference between the price received by the producer and the price paid by the consumer, there are 3 products of animal origin and 2 fruit and vegetables.
The low gap between origin and destination of livestock products and by-products was due to various factors. while the eggs (1.84 times) and the chicken (2.47), in general, they have integrated production systems, which means that all the actors in their respective value chains are part of the business risk; the behavior of the milk (2.91) is explained both by the Careful Prices program and by a better international price, which allows dairy factories to spill over to the producer.
In the case of Strawberry (1.87) —at this time, out of season—, it is a fruit that everyone needs to have on the gondola, so the greengrocer and/or the hypermarket give up profitability in the face of a high final sale value, thus narrowing the difference between the price received by the producer and the price paid by the consumer.
Lastly, and in relation to the eggplant (2.93), the producers from Buenos Aires indicated that there is not enough production to cover the demand, so the price of origin is negotiated higher, reducing the IPOD gap.
Source: Ambito
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