Evaluation of the effect of exchange rate and energy prices on livestock products and feed prices in türkiye with path analysis

Abstract

The aim of this study was to reveal the effects of exchange rate ($) and energy (oil) prices on livestock product (red meat, milk, eggs) and input (feed) prices in Türkiye through Path Analysis. The material of this study consisted of monthly average exchange rate and energy prices vs. fattening feed, milk feed, and egg feed prices, and producer prices of red meat, milk, and eggs for the years 2010-2023. According to the findings of this study, one unit increase in the exchange rate resulted in a total increase of 0.98, 0.99 and 0.98 units in the prices of fattening, milk and egg feed, respectively; a total increase of 0.93, 0.98 and 0.97 units in red meat, milk and egg prices, respectively (P0.05). As a result, it has been observed that the exchange rate affects, particularly, input and livestock product prices, whereas energy prices affect only input costs in Türkiye. Therefore, it is thought that reducing external dependence on energy and upward fluctuations in exchange rates will make significant contributions to the reduction of input costs and product prices in animal husbandry, increase consumption rates and profitability of producers.

Keywords

• livestock products
• energy
• exchange rate
• path analysis
• price