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Beef and milk price links in Turkey

Author

Listed:
  • Sayed H Saghaian

    (University of Kentucky)

  • Gokhan Ozertan

    (Bogazici University)

  • Hasan Tekguc

    (Mardin Artuklu University)

Abstract

This article addresses the recent beef price spikes in Turkey, using contemporary time-series analysis. The arguments point to the impact of low milk prices that led to liquidation of dairy herds and decline of beef prices initially due to the liquidation and increased meat supply, and subsequent price increases in the next year due to decreased supply. The results revealed that dairy herd liquidation had a delayed impact of a year to 18 months on farm, wholesale, and retail beef prices. Those effects wore off over a two-year time period.

Suggested Citation

  • Sayed H Saghaian & Gokhan Ozertan & Hasan Tekguc, 2013. "Beef and milk price links in Turkey," Economics Bulletin, AccessEcon, vol. 33(4), pages 2607-2616.
    • Handle: RePEc:ebl:ecbull:eb-13-00568
    as

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    References listed on IDEAS

    as
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    3. Anthony N. Rezitis & Konstantinos S. Stavropoulos, 2012. "Greek meat supply response and price volatility in a rational expectations framework: a multivariate GARCH approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(2), pages 309-333, April.
    4. Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
    5. John M. Marsh, 1988. "The Effects of the Dairy Termination Program on Live Cattle and Wholesale Beef Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 919-928.
    6. John M. Crespi & Tian Xia & Rodney Jones, 2010. "Market Power and the Cattle Cycle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 685-697.
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    More about this item

    Keywords

    dairy herd liquidation; milk and beef prices; time-series analysis; Turkey;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • A1 - General Economics and Teaching - - General Economics

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