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Red Meat Price Spikes in Turkey

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Author Info

  • Gokhan Ozertan

    (Bogazici University)

  • Sayed H. Saghaian

    (University of Kentucky)

  • Hasan Tekguc

    (Mardin Artuklu Univeristy)

Abstract

This article addresses the recent red meat price spikes in Turkey. Most arguments point to impacts of low milk prices leading to liquidation of dairy herds, and big retailers’ market power exertion. Because credible quantity data are lacking, we concentrate on price transmission along the beef marketing channel. The results reveal a differential impact on producers and retailers; price adjustment is asymmetric and bi-directional (i.e., both cost and demand driven) with price margins widening. The problem may be concentration and market power, specifically at the retail level, but due to lack of quantity data that cannot be determined with certainty.

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File URL: http://www.artuklu.edu.tr/Upload/iibf/Redmeat_Turkey_0113.pdf
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Bibliographic Info

Paper provided by Mardin Artuklu Univeristy, Department of Economics in its series Working Papers with number 2012-02.

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Length: 30 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:mrd:martwp:2012-02

Contact details of provider:
Postal: Mardin Artuklu Univeristy Sosyal Bilimler Enstitusu Diyarbakir Yolu, Yenisehir Mardin, 47100 Turkey
Email:
Web page: http://iktisat.artuklu.edu.tr/
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Related research

Keywords: dairy herd liquidation; oligopoly behavior; price adjustment; price asymmetry; red meat price spike; Turkey;

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References

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  1. Stephan Brosig & Thomas Glauben & Linde Götz & Enno‐Burghard Weitzel & Ahmet Bayaner, 2011. "The Turkish wheat market: spatial price transmission and the impact of transaction costs," Agribusiness, John Wiley & Sons, Ltd., vol. 27(2), pages 147-161, Spring.
  2. Cemal Atici & Goksel Armagan & Renan Tunalioglu & Gokhan Cinar, 2011. "Does Turkey's integration into the European Union boost its agricultural exports?," Agribusiness, John Wiley & Sons, Ltd., vol. 27(3), pages 280-291, 06.
  3. David A. Bessler & Derya G. Akleman, 1998. "Farm Prices, Retail Prices, and Directed Graphs: Results for Pork and Beef," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1144-1149.
  4. Martin B. Schmidt, 2000. "The Dynamic Behavior of Wages and Prices: Cointegration Tests within a Large Macroeconomic System," Southern Economic Journal, Southern Economic Association, vol. 67(1), pages 123-138, July.
  5. Bakucs, Lajos Zoltan & Ferto, Imre, 2008. "Price transmission on the Hungarian milk market," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44175, European Association of Agricultural Economists.
  6. Eruygur, H.O. & Cakmak, E.H., 2008. "EU Integration of Turkey: Implications for Turkish Agriculture," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44213, European Association of Agricultural Economists.
  7. Barry K. Goodwin & Matthew T. Holt, 1999. "Price Transmission and Asymmetric Adjustment in the U.S. Beef Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 630-637.
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