How Does the Change in Feed Prices Affect Meat Prices? A Case Study of Turkey

Authors : Veli Anıl Çakan, Tolga Tipi

Pages : 68-74

Doi:10.5152/AUAF.2023.22054

View : 175 | Download : 278

Publication Date : 2023-05-23

Article Type : Research Paper

Abstract :This study aims to understand the relationship between meat and meat product prices and feed prices. For this purpose, causality and long-run relationship between variables are examined using the Granger causality test and autoregressive distributed lag model approaches. The data of the study is formed from the Meat Consumer Price Index and Feed Price Index shared by the Turkish Statistical Institute. The data set is composed of 70 observations covering the period from January 2016 to October 2021. The results of the Granger causality test show that the Feed Price Index is the Granger cause of the Meat Consumer Price Index. According to the long-run estimation results of the autoregressive distributed lag model, a 1% increase in the Feed Price Index increases the Meat Consumer Price Index by 0.97%. It is estimated that the deviations from the long-run equilibrium will be adjusted in approximately 4 months. Considering the results of the study showing that the prices of meat and meat products are significantly affected by feed prices, it can be concluded that the subsidies to the feed crops and feed industry has the potential to impact meat prices positively
Keywords : ARDL modeli, Tüketici Fiyat Endeksi, yem fiyatları, Granger nedensellik testi, et fiyatları

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