2015News

Middlemen take the biggest cut of food prices

The local food market is a haven for a clique of middlemen who engage in profiteering, depriving both farmers and consumers of fair prices. A report in Diario Libre today, Tuesday 17 February 2015 reveals that these intermediaries take the biggest cut from the price of fresh food. The report found that food produced in Constanza, in La Vega province, is sold in supermarkets at a 300% markup over the price that farmers are paid for their work. For example, farmers sell potatoes at RD$7 to RD$10 per pound, making profits of 11-15%. They are then are sold to Santo Domingo supermarket customers for over RD$30 a pound.

The report says that when local produce is not enough to supply the local market and has to be imported, farmers get more for their produce. For instance, garlic farmers in Constanza can make 30% on the crop. Onions are scarce now, so they make 160%. The retail price is 69% more in the case of garlic and 200% more in the case of onions. As reported, farmers sell a bag of 50 lb of onions for RD$1,000, or RD$20 per pound. This reaches markets at RD$1,200 for a 50 lb bag or RD$24 per pound. But consumers end up paying RD$60-RD$65 per pound.

http://www.diariolibre.com/destacada/2015/02/17/i1005451_cadena-intermediacin-encarece-las-hortalizas-constanza-hasta-300.html