Factors affecting beef demand in Türkiye for 2010-2021 and the effects of restrictions imposed during the Coronavirus disease (COVID-19) period

Abstract

In this study, the beef price, prices of substitute goods (lamb and chicken meat prices), change in national income and effects of COVID-19 on beef demand for the years 2010-2021 is examined using the ARDL Bounds Test Approach. The study finds that in the long run, an 1% increase in income leads to an approximately, on average, 0.54% increase in demand for beef whereas an 1% increase in beef prices results in, on average, an approximately 0.25% decrease in beef demand. Moreover it is determined that, in the long run, an increase of 1% in the price of lamb meat causes, on average, a 0.37% increase in beef demand, and an 1% increase in chicken meat prices results in on average, a 0.11% decrease in beef demand. This study also uses a dummy variable to account for COVID 19 pandemic effect on the demand of beef. According to the findings for this variable, the pandemic, reduces meat demand, on average, 11% with compared to non-pandemic period. As a result, the demand for beef is found to be affected by the income status of the consumer and the prices of the product itself and its substitutes.

Keywords

• ARDL model
• Beef demand
• Cattle fattening
• COVID-19
• SHRI (Stay-at-Home Restriction Index)

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