Dynamics of Price Transmission and Market Power in the Turkish Beef Sector

Özertan, Gökhan; Saghaian, Sayed H.; Tekgüç, Hasan

doi:10.3848/iif.2015.349.4317

Cited by 13 publications

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“…Another factor leading to the price increases is the role of market concentration and market power, particularly at the level of retail prices [2] . While the four-firm concentration (CR 4 ) in the red meat market of Turkey was 41% in 2007, it rose to 50% in 2012 [34,35] .…”

Section: Discussionmentioning

confidence: 99%

“…This indicates that the subsidies granted are actually not transferred to producers, but rather to the processes after the production [36] . Due to the asymmetrical price transfer in the red meat market, there are no large-scale enterprises producer cooperatives that have the potential to become suppliers [2] . As producers are small-scale enterprises, it is highly essential that they organise against large retailers and wholesalers so that they can have sufficient bargaining power under the current market conditions [3] .…”

Section: Discussionmentioning

confidence: 99%

“…While retail veal prices rose by 130% between 2005-2013, retail mutton prices increased by 154% and the feed prices by 115%. The increases in the prices of red meat were higher than the increases in the CPI (Consumer Price Index), which was 118% in the same period [2] . This drastic increase in the retail prices resulted in approximately 30% decrease in the per capita consumption of red meat [3] .…”

Section: Introductionmentioning

confidence: 90%

“…The increase in prices continued in the period from 2014 to 2017 as well, and retail prices of veal rose by 19.54% [4] . The increasing prices of red meat have been a subject of debate both in the media and among the policy-makers in Turkey [2] .…”

Section: Introductionmentioning

confidence: 99%

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Türkiye’de Perakende Dana Eti Fiyatlarındaki Değişimin Garch Yöntemiyle Belirlenmesi, 2014-2017

Arıkan¹,

Çevrimli²,

Akın³

et al. 2019

Kafkas Univ Vet Fak Derg

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In Turkey, the demand for veal in the red meat market is steadily increasing. In the formation of this demand and price; additional factors such as consumer preferences, government interventions in the red meat market, import decisions, also the implemented policies and subsidies are effective besides the main factors. However, the fact that such practices do not affect the veal prices in the market makes it impossible to ensure price stability and a sustainable market. The analysis of the change in retail prices is important for both producers and consumers so that the validity of this view can be tested. The aim of this study was to analyze the retail prices of minced meat and the veal cubes from the first week of January 2014 to the last week of December 2017 via using the volatility estimation modeling method in the context of the effectiveness of the policies and market interventions applied in the red meat sector implemented in Turkey. Non-stationary series were made stationary by differencing. By developing a Generalised Autoregressive Conditional Heteroskedasticity (GARCH 1,1) model using the series subject to a unit root test, it was found to be the optimal model that best explains the fluctuation of the prices. The results of the estimation show that the retail prices of veal cubes and minced meats fluctuated conspicuously in the said period and that the implemented policies and the market interventions were not adequate to eliminate the instability and uncertainty of the prices. ÖzTürkiye'de kırmızı et tüketiminde büyükbaş hayvan etine olan talep her geçen gün artmaktadır. Bu talebin ve fiyatın oluşmasında tüketici tercihleri, kırmızı et piyasasına yapılan devlet müdahaleleri, alınan ithalat kararları, uygulanan politikalar ve desteklemeler de etkili olmaktadır. Ancak bu uygulamaların etkisinin reel piyasada dana eti fiyatlarına olumlu yansımaması sebebiyle, fiyat istikrarının sağlanması ve sürdürülebilir yapıya kavuşması imkânsızlaşmaktadır. Bu çalışmada; Ocak 2014 ilk hafta ile Aralık 2017 son haftası arasındaki döneme ait verilere göre Türkiye'de kırmızı et sektöründe uygulanan politikalar ve devlet müdahaleleri kapsamında perakende dana kıyma ve kuşbaşı ortalama fiyatları volatilite tahmin modelleme yöntemi ile analiz edilmesi amaçlanmıştır. Durağan olmayan serilerin farkları alınarak durağan hale getirilmiştir. Birim kök testi uygulanan serilere daha sonra Genelleştirilmiş Otoregresif Koşullu Değişen Varyans (GARCH 1,1) modeli kurularak, fiyatlardaki dalgalanmayı açıklayan en uygun model olduğu tespit edilmiştir. Tahmin sonuçları incelenen dönemde perakende dana kuşbaşı ve kıyma fiyatlarında belirgin dalgalanmaların yaşandığını göstermekle birlikte bu dönemde uygulanan politikaların ve piyasaya yapılan müdahalelerin fiyatlardaki istikrarsızlık ve belirsizliği gidermede yeterli olmadığını açıklamaktadır.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 90%

Section: Introductionmentioning

confidence: 99%

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Türkiye’de Perakende Dana Eti Fiyatlarındaki Değişimin Garch Yöntemiyle Belirlenmesi, 2014-2017

Arıkan¹,

Çevrimli²,

Akın³

et al. 2019

Kafkas Univ Vet Fak Derg

View full text Add to dashboard Cite

show abstract

“…Our concern in this letter is this apparent disconnection between meat prices and livestock supply in Turkey, particularly whether trend‐following behavior (such as rising expectations, speculation, and hoarding) feed price bubbles or help detach prices from market fundamentals (USDA‐FAS, ). Özertan, Saghaian, and Tekgüç () put forward evidence that the beef sector in Turkey represents an oligopolistic market structure, where both producers and retailers take advantage of their market power, thereby providing signals for the existence of speculative behavior in this sector. In the expectation of gaining higher future prices, these producers can use their market power to control beef availability in the market (USDA‐FAS, ).…”

Section: Introductionmentioning

confidence: 99%

Does speculation cause high red meat prices? Evidence from Turkey

Ganioğlu

2019

Agribusiness

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The focus of this letter is the upward trend of red meat prices in Turkey that began to surge in 2009. A typical explanation for such price increases would be an inadequate supply of livestock. Yet, although measures were taken to raise the supply of red meat, they were not sufficient to reverse or stop this upward trend in prices. We specifically search for the dynamics behind the price spikes by exploring whether they were driven by speculation. We investigated the presence of rational speculative bubbles in the red meat market in Turkey by employing a recent methodology developed by Phillips et al. (2015). We found evidence for explosive periods and detected

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The evolution of unprocessed food inflation in Turkey: an exploratory study on select products

Demirkılıç

Özertan

Tekgüç

2022

New Perspect. Turk.

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Food price increases stem from economic, agricultural, and political factors. Understanding the dynamics behind the food price formation process and assessing how potential factors contribute to food price changes will significantly affect policies formulated to manage food price increases. High food inflation rates have been a chronic problem in Turkey over the last decade, with unprocessed food prices rising faster than general price levels. In this article, we use exploratory analyses based on economic principles rather than econometric analyses. First, our results indicate that exchange rates are strongly associated with domestic food prices due to dependence on imported inputs. Second, deep-dive analyses on select products show that global price movements and pass-through prices from producer to consumer are not solely responsible for price increases.

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Dynamics of Price Transmission and Market Power in the Turkish Beef Sector

Cited by 13 publications

References 0 publications

Türkiye’de Perakende Dana Eti Fiyatlarındaki Değişimin Garch Yöntemiyle Belirlenmesi, 2014-2017

Türkiye’de Perakende Dana Eti Fiyatlarındaki Değişimin Garch Yöntemiyle Belirlenmesi, 2014-2017

Does speculation cause high red meat prices? Evidence from Turkey

The evolution of unprocessed food inflation in Turkey: an exploratory study on select products

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