The Factors Affecting the Beef Producer Price Formation in Turkey

Abstract

On the point of human health, sufficient amount of consumption of red meat, which is one of the main sources of animal protein is of crucial importance. When looking at the per person red meat consumption in Turkey, it is seen that the average is quite below the world average. Such a low level of consumption stems from the high beef prices and the tendency of these prices to increase is shown as the primary reason. This increase puts pressure not only on meat consumption but also on the inflation. The aim of this study is to assess the beef prices tendency of increase by separating it from inflation effect; to determine the main factors that affect the increase in prices and to develop suggestions to establish price stability. In this context, what has been identified as factors thought to be causing the increase in prices, input costs, substitution-competing product prices and agricultural supports current and real progress were analyzed, level of relations between producer and consumers prices has been identified. As a result of the analysis, it was understood that the increase in beef prices was mainly caused by the inability to meet the demand due to the insufficient meat production and a strong correlation was found between milk prices and beef producer prices. Accordingly, in order to ensure the stability of red meat prices, it is necessary to increase the meat production primarily, to develop beef cattle husbandry for this purpose, increase the stock of the fattening material to the sufficient level, shorten the marketing chain and control it, determine the livestock policies in a long-term and planned manner, and establish an accurate and effective support mechanism without ignoring the relationship between meat and milk production.