According to the Price Index on Origin and Destination of Agricultural Products, aka. IPOD, the agricultural products with the highest price gaps in the month of April were: “oranges, with a distortion of 14.1 times [higher], followed by mandarin oranges with a difference of 13.21 times, apples 8.4 times, and Pear 8.13 [times higher]”
It’s hard to go from farm to table without accruing some additional costs from middlemen. Prices increase 3.17 times by the time they reach their distribution centers, and 5.29 times looking at the price from the farm against what the consumer ends up paying in the supermarket, according to Index on Origin and Destination of Agricultural Products. These numbers give context to the pain many feel in their wallets upon check out and show that it’s not just a straightforward case of inflation hitting consumers at the register.
In April, consumers paid on average 5.56 times more than what vendors paid. Your eggs were the least affected, only increasing 1.94 times in price from farm-to-table. But the oranges you bought to make some O.J. the other day, increased 14.1 times more from the farm they grew to the supermarket you bought them in.
IPOD measures their data by observing the variation in level of values in two distinct stages of commercialization: origin price and destination price. The origin price is the price paid to the farmer, and the destination price is the price paid by consumers in the supermarket.
Since last June, the average range of price gaps between the origin and the shopping cart has stayed between 4.6 and 6 percent, each month.
The high seasonality of certain products (meaning, they grow seasonally as opposed to year-round), and export products, are two explanations for price variability month-by-month.
Not only are prices of produce skyrocketing from the farms they came from to the tables they are served on, but if you live in central Buenos Aires you are paying significantly more than the provincial areas. In a previous article, The Bubble covered the price differences in supermarkets between Capital Federal and the provincial area of Buenos Aires, claiming people were paying up to 37% more at supermarkets in central Buenos Aires compared to the outer provinces.