Impact of Essential Feed Crops and Feed Additives on Red Meat and Milk Markets

Abstract

All feeds used in animal nutrition are classified in various ways, including raw, semi-processed and processed, depending on the additives they contain. Animal feed input, which is generally classified as coarse and mixed feed, constitutes about 30-40% of the total production costs in cattle farms. Therefore, supply-demand elasticity of feed input, input-product price relations and exchange rate changes directly affect the costs, profits and thus sustainability of farms. Additionally, it is necessary to know how the two important activities of the agricultural sector, forage crops production and animal husbandry, affect each other and, if necessary, regulatory measures should be taken. The aim of this study is to determine the effects of cost changes in forage crops production on animal product market. The main data of the study consisted of the time series data of the period 1995-2017 and cross-sectional data obtained from the 107 agricultural farms determined by random sampling method in face-to-face survey method in 2017-2018 production period. Partial equilibrium model used in the study. In the model, diesel and fertilizer prices, which are the most important cost elements in forage crops production; barley, maize and sunflower prices have a statistically significant and positive effect. Partial equilibrium model was used to reveal the effect of cost change in forage crops production on animal product market. Partial balance model results, increasing barley, maize and sunflower prices increase feed prices. Forage crops costs are the highest cost item after purchase of live animal material.