Consumers pay more than producers receive

In March, the average price of tomatoes rose by US$0.70, a direct blow to consumers’ wallets, who now pay up to three times more per kilo than what producers receive, as profit margins are swallowed up by middlemen.

According to data provided by the Agricultural Markets Consulting Group (GCMA), while in the fields the price of tomatoes rose from US$0.84 to US$0.99 per kilogram between March and early April—an increase of US$0.14, equivalent to 17.2%—in the consumer market the jump was from US$2.51 to US$3.22 per kilogram; that is, an additional US$0.71 or 28.3%.

This increase is explained by the costs that accumulate at each stage between the fields and the points of sale—transportation, wholesale markets, and retail stores—where most of the price hike and profits are concentrated; ultimately, consumers pay 3.26 times more than what producers receive for each kilo sold.

From the perspective of the GCMA specialist, the problem does not stem from production, but rather from the way the product is marketed, as the gap between what the producer receives and what the consumer pays has widened.