Meat prices drop with days left until Eid al-Adha! Experts explain why

The process, which began about two years ago when dairy farmers, who were losing money per liter, sent their milk-producing animals to slaughter, has turned into a significant problem for red meat. Meat prices have risen by more than 110 percent since the beginning of the year alone. 

The price of a kilogram of ground meat, which hovered around 300 TL in January, rose to 650 TL by May. However, according to information we received from industry representatives, there has been a decline of around 8-10 percent in wholesale and retail red meat prices over the last 15 days. 

Providing information to Hürriyet regarding the reasons for this, Dr. Ahmet Yücesan, President of the Red Meat Industrialists and Producers Association (ETBİR), explained that the intervention of the Meat and Milk Board (ESK), which began imports to prevent price increases, provided a decline in prices as it increased supply in the market. Another reason is the contraction in consumption following the levels prices had reached.

According to the report by Gamze Bal from Hürriyet, Aydın Tüfekci, President of the Istanbul Retail Butchers Chamber of Tradesmen, said, “When prices increased by over 100 percent, demand fell by around 30-35 percent. Following the loss of business caused by the contraction in consumption, there has been a decline in prices ranging from 35 TL to 50 TL over the last 15 days. In my 40 years as a tradesman, this is the first time I have seen a decline in meat prices before Eid al-Adha.”

FELL BY AT LEAST 40 TL

According to information provided by ETBİR President Yücesan, wholesale carcass meat prices have fallen from 380-390 TL to 340 TL over the last 20 days. The situation for retail prices is as follows: 

Ground meat, which was sold for 290-300 TL per kilogram at the beginning of the year, had reached 400 TL after being hiked three times in January. After red meat prices were hiked at least twice a month in February, March, and April, the price of a kilogram of ground meat reached 600-650 TL. Following the ESK's intervention and the contraction in demand, prices have fallen to 550-600 TL. The price of a kilogram of cubed meat has also fallen to the 580-630 TL range.

Dr. Yücesan said, “If the ESK had not intervened, the price of wholesale carcass meat would have risen to 500 TL. Both sacrificial animals are being imported for the holiday, and calves, breeding stock, and dairy animals are also being imported. 80-100 trucks of carcass meat arrive per week. In an environment where supply is low, 20 percent of total consumption has been met through imports. If the supply in the market had not been balanced, prices would not have fallen solely due to the contraction in consumption.”

DOMESTIC PRODUCTION IN PRICES

Stating that red meat prices will continue to be suppressed until Eid al-Adha due to the decline in consumption and the continuation of the ESK's feeder cattle imports, Dr. Yücesan pointed out that this suppression could also extend beyond the holiday. However, Yücesan said that demand will increase again with the revival of the tourism season in the summer months, which will result in prices accelerating upwards again.

According to experts, for prices to stabilize in the long term, domestic production must increase and producers must be supported in this regard. Yücesan assessed, “While feed prices have increased in parallel with inflation in recent times, the cost that red meat producers have struggled with the most has been the rise in unit prices of live animals. Calf prices have increased excessively. Because the brood animals that gave birth to those calves went to slaughter. This has been the biggest reason for the increase in red meat prices. Supply needs to increase domestically.”

TREND TOWARD LOCAL MARKETS

While butchers' sales have declined following the level reached by red meat prices, there is intense demand for local markets that sell imported meat provided by the ESK. Local markets in Ankara and Istanbul had decided to fix red meat prices throughout Ramadan as part of their cooperation with the ESK.

Speaking to Hürriyet, Faruk Güzeldere, President of the Istanbul Retailers Association (PERDER), said, “The price of a kilogram of ground meat is 314 TL, and the price of a kilogram of cubed meat is 344 TL. When a significant difference formed between these prices and the prices in the market, there was intense demand from consumers. Our meat sales have grown.” Güzeldere stated that they have decided to continue the decision to fix prices at least until Eid al-Adha.

Aydın Tüfekci, President of the Istanbul Retail Butchers Chamber of Tradesmen, included the statements, “Tradesmen have had a business loss of around 30-35 percent over the last 3 months. Per capita consumption has fallen by over 20-25 percent in one year.”