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Examining the variables affecting the prices of animal-source foods by the network analysis method, the case of Turkey

Ahmet Cumhur Akin, Murat Polat, Burak Mat, Mustafa Bahadır ÇEVRİMLİ, Mehmet Saltuk Arikan, Zeynep Özel, Mustafa Agah Tekindal

Abstract: Recently, Turkey has seen significant increases in animal-source foods and related raw material prices. These recent increases in prices have made it even more important to examine the prices of animal-source foods and their associated factors. This study aimed to reveal the pattern network structure and characteristics of the prices of animal-source foods and related variables for the 2010-2020 period in Turkey. To this end, a network analysis covered the prices of animal-source foods, raw material prices used in producing these foods, and some economic variables. The study results revealed that Producer Price Index (PPI) and Agricultural PPI are key variables that are highly active in the network and act as a bridge between other unconnected variables. In addition, the results of the analysis suggest that the overall network consists of highly correlated variables and that the PPI and Agricultural PPI are the two most important variables. As a result, the pattern network structure shows that economic variables have a high impact on the prices of animal-source foods. The network structure visualizes Turkey's import-substitution model in animal production and foreign dependency on feed raw materials and the market structure affected by high exchange rates. In addition, as can be understood from the positive connections between feed raw materials, the pattern network of the variables affecting the prices of animal-source foods is largely shaped by feed prices and the internal dynamics of economic variables.
Keywords: structure / prices / animal source / source foods / Turkey / pattern network / feed / PPI / variables affecting

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