Analysis of Factors Affecting the Production Costs of Red Meat Products in Türkiye

Abstract

This study was conducted to analyse the production costs of red meat products (sucuk, salami, pastırma and kavurma) in Türkiye and to identify the factors affecting unit costs across different enterprise scales. The data for the study comprises information from 15 enterprises covering the 2014 and 2015 production periods. The enterprises were divided into three groups based on the annual volume of red meat processed: small-scale (0–50 tonnes), medium-scale (51–100 tonnes) and large-scale (101 tonnes and above). The data were collected through face-to-face interviews using a data collection form. Cost items were evaluated by product type within the establishments, and factors influencing unit cost were estimated using a multiple regression model. According to the estimated regression model, it was determined that raw material costs, transport, auxiliary materials, energy, labour, meat price, depreciation, maintenance and repair, cleaning and other expenses have an impact on unit cost. It was found that the share of raw materials (red meat) in the total cost for sucuk, salami, pastırma and kavurma was 75.11%, 74.27%, 82.10% and 82.26% respectively. The regression models explain 95–98% of the variance in unit cost. A one-unit increase in raw material costs raises the unit cost by 1.038 units for sucuk, 0.870 units for pastırma and 0.944 units for kavurma. Furthermore, a one-unit increase in maintenance and repair expenditure reduces the cost by 0.042 units for salami, whilst an increase in auxiliary material costs reduces the cost by 0.043 units for pastırma. It has been found that medium-scale enterprises are more successful in cost management thanks to raw material procurement, product diversity and management optimization. To enhance sustainability and profitability in the sector, policies that ensure stability in the supply and pricing of raw materials the most significant cost item are of paramount importance.