October 18, 2010
Turkish consumers worry on meat price hikes before Eid al-Adha
The Consumers Union (TK) of Turkey has expressed concerns over artificial increases in the meat price due to livestock producer speculation just ahead of the upcoming Eid al-Adha (Feast of the Sacrifice).
TK Deputy Chairman Mustafa Dinç emphasised the recent steep increases in the price of sheep and cattle, stating that this stemmed largely from the greed of animal breeders to earn more through speculation and manipulating the supply and demand mechanism of the market.
As in previous years, the speculators are on-stage again this year," Dinç argued. For him, some large-scale animal farmers are spreading the word in the markets that the number of livestock has dropped dramatically, in contrast to the truth. In the meantime, they are keeping their animals in the barn instead of offering them to the market in order to support their lies and make people really believe that animal production is in decline. The result is skyrocketing prices with, in some regions, the price of a single head of cattle reaching TRY5,000 (US$3,511).
However, Dinç claims, this mechanism is working to the detriment of producers in the long run due to a corresponding drop in demand, which results in less revenue. "We recommend that producers keep meat prices at reasonable levels. Otherwise, they will likely not be able to sell all the animals they bring to the market, as was the case in previous years," he said, recalling the sharp decreases in people's willingness to pay high sums for animals. As a result, Dinç says, animal breeders will have to slash the price of livestock by more than 50% on the first day of Eid al-Adha.
According to Dinç's expectations, approximately one million animals will be sacrificed this year. He advised consumers to carefully consider their finances when deciding what to sacrifice, adding that it would be even better if they waited until the eve of Eid al-Adha if the prices persist at high levels.
He further mentioned the possibility of an ensuing rise in the meat prices due to the slaughtering of a million animals in the feast. Turkey has long been suffering from high meat prices. The Cabinet has allowed the importing of livestock and meat from abroad to increase supplies and lower prices, but the attempts have failed so far with virtually no drop in prices.
As a final remark, Dinç suggested that consumers donate the amount they saved for sacrifice as aid for countries that are stricken by poverty and catastrophes such as Pakistan, Palestine, Indonesia and Kashmir, provided that this aid be utilised for animal sacrifice in these countries and the meat be distributed among the poor. "Therefore, consumers can fulfill their duty at a lower rate than in Turkey while strengthening the ties of brotherhood with the people of these countries. Additionally, the pressure on meat prices in the domestic market will decrease, which could lead to a fall in prices," Dinç said.
