Abstract Production technology used in the Turkish broiler sector is well developed. Eighty percent of production is mostly carried out at integrated facilities, using internationally competitive techniques that are employed in developed countries. Broiler slaughter capacities are 15 000 - 17 000 units/h. The increase in the concentration ratio of top four firms (CR4) in the broiler sector has caused doubts about the competitiveness. According to 2004 data, the top 20 firms produce 84% of the total production and CR4 is 38.7%. In this study, a differentiated product oligopoly model has been applied to the Turkish broiler sector, and the price competition from 1998 to 2004 has been analysed. The top five firms, which have the highest competitive power and which are the only firms that meet the European Standards and are exporting broiler meat to the EU countries, have been included in the analysis. The results show that these firms have elastic demand and positive price cost margin.
Keywords competitiveness; broiler sector; demand elasticities; oligopoly model
A05064; Online publication date 25 October 2006 Received 2 December 2005; accepted 19 September 2006
New Zealand Journal of Agricultural Research, 2006, Vol. 49:
431–437
0028–8233/06/4904–0431 © The Royal Society of New Zealand
2006
PDF file of entire paper: Print-quality (379K) | screen-quality (357K)