Why is the product that is 1 lira in the field 5 lira on the counter? What determines the difference between consumer prices in fruit and vegetables and the price received by the farmer. Central Bank of the Republic of Turkey (CBRT) periods that lead to discuss this issue, '' Determining the Consumer Price Difference from the field Vegetables and Fruit Factors '' says the study dealt with.
According to the study prepared by Okan Eren, Süleyman Hilmi Kal and Mustafa Utku Özmen, the ratio of imports to production affects the price margin on both fruits and vegetables. Exports, on the other hand, are effective only in the fruit price margin. Changes in the exchange rate stand out as one of the important factors that increase the price gap, especially in fruits.
Why is the product that is 1 TL in the field and 5 TL in the looms? We often hear this question, especially in times of high food inflation. The debate flares up as the gap between producer prices for fruit and vegetables and final consumer prices grows. The price change in agricultural products from the producer to the market is shown as one of the important reasons for food inflation.
The links of the long chain, from the price-aware production input costs from farmers to the market, to climate change and seasonal conditions, to the product leaving the producer's hands and reaching the consumer, are of course effective. Exports, imports, changes in exchange rates as well.
The Central Bank of the Republic of Turkey (CBRT) has dealt with this issue in a study. The name of the study prepared by Okan Eren, Süleyman Hilmi Kal and Mustafa Utku Özmen is "Factors Determining the Price Difference from the Field to the Consumer in Vegetables and Fruits".
BASE OF 15 FRUITS AND 13 VEGETABLE PRODUCTS
In the study, Turkey's Statistical Institute (TSI) were 15 fruit and 13 vegetable products within the food basket of the base. These products include apples, apricots, bananas, cherries, grapes, strawberries, lemons, tangerines, oranges, peaches, pears, olives, hazelnuts, peanuts, walnut kernels, tomatoes, onions, cucumbers, green peppers, pools, eggplants, leeks, potatoes. , lentils, chickpeas, beans, rice and garlic. Factors affecting the proportional difference between the price received by the farmer (field price) and consumer prices in these products were analyzed using panel data analysis techniques for the years 2004-2016.
IMPORT AFFECTS PRICE MARGIN
The results indicate that the ratio of imports to production affects the price margin for both fruits and vegetables, while the ratio of exports to production affects only the fruit price margin.
A 1 point increase in the ratio of imports to production can increase the price margin for vegetables by about 0.4 points and cause an average 0.9 point decrease in fruit.
The depreciation of the Turkish Lira (the increase in the exchange rate variable) creates an upward pressure on the price margin, being stronger in fruits. Although the exchange rate for fruits is a cost element in agricultural production, it also affects the pricing behavior of retailers. A 1 percentage point increase in the exchange rate increases the price margin for vegetables by 0.008 points and for fruits by 0.01 points.
THE MINIMUM WAGE CHANGE NO EFFECT
Real growth and minimum