December saw the predictable rise in food prices, this time by almost 5 per cent according to the Origin and Destination Price Index (IPOD) developed by the Argentine Chamber of Small and Medium-Sized Businesses (CAME). However the situation facing many farmers has improved, with December seeing 1.6 percent less disparity between producer prices and consumer prices.
The assessment was made by examining 25 agricultural and livestock products. In 10 cases the disparity gap widened, however in 14 cases, it dropped or remained unchanged. For the average price of agricultural food and livestock measured in December, the producer received 25.1 percent of the price paid by the customer for products on the shelf, an improvement from November’s 24.3 percent.
Farmers also saw a 24.1 percent profit compared to the same month in 2015. For every product that was bought from the supermarket aisle they received more money for the third consecutive month, with December seeing a 3.3 percent rise above November.
The agricultural products with the greatest disparity in price gaps were mandarin oranges, with a difference of 14.55 times, followed by the pears with a difference of 9.82 times and red apples at 9.21 times. In contrast, some of the least differentiated products, were chicken with a difference of 2.12 times, potatoes at 2.20 times higher and eggs at 2.29 times more expensive.