The Effects of Changes in Exchange Rate and Oil Prices on the Costs of Agricultural Products for the Period 2019-2022

Abstract

For human capital, which is one of the cornerstones of modern societies, there is a need to be fed with adequate and healthy food, as well as to develop education and skills. At this point, one of the key elements of the economic development of countries is food and agriculture. Countries are provided with the necessary raw materials for food supply and industry through agricultural activities. Therefore, prices of agricultural products are of great importance for economies. In recent years, fluctuations and high-rate increases have been observed in agricultural product and oil prices. One of the most important reasons for the increase in agricultural product prices can be listed as the increase in the price and Exchange rate of crude oil, which has a large share in the production costs of these products. In this study, the effects of oil price and exchange rates on agricultural product prices were examined by comparative analysis using the data for the period of January 2019 and May 2022 in Türkiye. The findings show that when the data for the years 2019-2022 are compared, the exchange rate variable affects the prices of agricultural products positively, but oil prices increase and decrease independently of all indicators.