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The Emerging Dairy Economy in China: Production, Consumption and Trade Prospects

Author

Listed:
  • Zhou, Zhang-Yue
  • Tian, Wei-Ming
  • Zhou, Jun-Lin

Abstract

Currently per capita consumption of dairy products in China is low. The question as to whether China’s strong economic growth and the resulting higher consumer income would represent a great market potential for dairy products has drawn much interest from the dairy industry both within and outside China. This paper overviews China’s dairy market with up-to-date information and highlights important factors affecting its development. The study shows that the growth of demand for dairy products in China is promising. However, despite the fact that China’s accession to the WTO will result in reductions in trade barriers, a substantial increase in exports of dairy products to the Chinese market is unlikely in the near future. This is due to a number of reasons including taste differences between the Chinese and the consumers of major dairy exporting countries. To succeed in the Chinese market, dairy exporters need to increase their understanding of the Chinese dairy markets and to consider modifying their products to suit the tastes of the Chinese.

Suggested Citation

  • Zhou, Zhang-Yue & Tian, Wei-Ming & Zhou, Jun-Lin, 2002. "The Emerging Dairy Economy in China: Production, Consumption and Trade Prospects," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 10, pages 1-17, September.
    • Handle: RePEc:ags:auagre:206159
    DOI: 10.22004/ag.econ.206159
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    Citations

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    Cited by:

    1. Qingbin Wang & Robert Parsons & Guangxuan Zhang, 2010. "China's dairy markets: trends, disparities, and implications for trade," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(3), pages 356-371, September.
    2. Cao, Li‐Juan & Tian, Wei‐Ming & Wang, Ji‐Min & Malcolm, Bill & Liu, Hong‐Bo & Zhou, Zhang‐Yue, 2013. "Recent Food Consumption Trends in China and Trade," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 21, pages 1-30.
    3. Frank H. Fuller & Jikun Huang & Hengyun Ma & Scott Rozelle, 2005. "Rapid Rise of China's Dairy Sector: Factors Behind the Growth in Demand and Supply, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 05-wp394, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Dong, Fengxia, 2006. "The outlook for Asian dairy markets: The role of demographics, income, and prices," Food Policy, Elsevier, vol. 31(3), pages 260-271, June.
    5. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.
    6. Bai, Junfei & Wahl, Thomas I. & McCluskey, Jill J., 2008. "Fluid milk consumption in urban Qingdao, China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-15.
    7. Shaosheng Jin & Rao Yuan & Yan Zhang & Xin Jin, 2019. "Chinese Consumers’ Preferences for Attributes of Fresh Milk: A Best–Worst Approach," IJERPH, MDPI, vol. 16(21), pages 1-16, November.
    8. Jia, Xiangping & Huang, Jikun & Luan, Hao & Rozelle, Scott & Swinnen, Johan, 2012. "China’s Milk Scandal, government policy and production decisions of dairy farmers: The case of Greater Beijing," Food Policy, Elsevier, vol. 37(4), pages 390-400.
    9. Jin, Yanhong H. & Lin, Liguo & Yao, Lan, 2011. "Do Consumers Trust the National Inspection Exemption Brands? Evidence from Infant Formula in China," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103766, Agricultural and Applied Economics Association.
    10. Huang, Jikun & Wu, Yunhua & Yang, Zhijian & Rozelle, Scott & Fabiosa, Jacinto & Dong, Fengxia, 2012. "Marketing China's milk: A case study of the sales activity of dairy farmers in greater Beijing," China Economic Review, Elsevier, vol. 23(3), pages 675-689.
    11. Rae, Allan N., 2008. "China’s agriculture, smallholders and trade: driven by the livestock revolution?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-20.
    12. Allan Rae, 2008. "China's agriculture, smallholders and trade: driven by the livestock revolution? ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 283-302, September.
    13. Jimin Wang & Zhangyue Zhou & Qiuhong Shen, 2008. "Who is Going to Supply the Milk to China's South?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(4), pages 94-109, July.
    14. Ma, Hengyun & Rae, Allan N. & Huang, Jikun & Rozelle, Scott, 2006. "Enhancing Productivity on Dairy Farms in China: Taking the Cows to Town," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 174719, Australian Agricultural and Resource Economics Society.

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