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Marketing China's milk: A case study of the sales activity of dairy farmers in greater Beijing

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  • Huang, Jikun
  • Wu, Yunhua
  • Yang, Zhijian
  • Rozelle, Scott
  • Fabiosa, Jacinto
  • Dong, Fengxia

Abstract

Small farmer participation in marketing chains in emerging commodity markets and the determinants of their marketing channel choices are the center of many recent empirical and theoretical papers in the literature. The dairy sector is emerging in China. There are many fundamental questions about how farmers make dairy marketing decisions in China at the farm gate level that are unanswered. This makes the dairy sector in China a good place to study farmers in emerging marketing chains. Based on three sets of unique data collected in the mid-2000s in Greater Beijing, the analyses show that small farmers were the major producers of milk. There is no evidence that small farmers are being excluded from emerging marketing channels. One of the differences of China's dairy sector in the mid-2000s is that its marketing chain itself had many different types of agents that procure milk — and few of them were large; most were individual entrepreneurs. The high level of the competiveness may be the reason that individual agents do not have monopoly power and why small farmers can operate in the system.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 23 (2012)
Issue (Month): 3 ()
Pages: 675-689

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Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:675-689

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Web page: http://www.elsevier.com/locate/chieco

Related research

Keywords: Marketing activity; Dairy farmers; Marketing channel; Greater Beijing;

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  1. Wang, Honglin & Dong, Xiaoxia & Rozelle, Scott & Huang, Jikun & Reardon, Thomas, 2009. "Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China," World Development, Elsevier, Elsevier, vol. 37(11), pages 1791-1801, November.
  2. Fuller, Frank H. & Beghin, John C. & Rozelle, Scott, 2007. "Consumption of Dairy Products in Urban China: Results from Beijing, Shangai and Guangzhou," Staff General Research Papers 12730, Iowa State University, Department of Economics.
  3. Rae, Allan N. & Ma, H. & Huang, J. & Rozelle, Scott, 2006. "AJAE Appendix: Livestock in China: Commodity-specific Total Factor Productivity Decomposition Using New Panel Data," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 88(3), August.
  4. Ruan, Jianqing & Zhang, Xiaobo, 2008. "Finance and cluster-based industrial development in China:," IFPRI discussion papers 768, International Food Policy Research Institute (IFPRI).
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  6. Rae, Allan N. & Ma, Hengyun & Huang, Jikun & Rozelle, Scott, 2005. "Livestock in China: Commodity-specific Total Factor Productivity Decomposition Using New Panel Data," 2005 Conference, August 26-27, 2005, Nelson, New Zealand, New Zealand Agricultural and Resource Economics Society 98507, New Zealand Agricultural and Resource Economics Society.
  7. Pokhrel, Deepak M. & Thapa, Gopal B., 2007. "Are marketing intermediaries exploiting mountain farmers in Nepal? A study based on market price, marketing margin and income distribution analyses," Agricultural Systems, Elsevier, Elsevier, vol. 94(2), pages 151-164, May.
  8. Huang, Zuhui & Zhang, Xiaobo & Zhu, Yunwei, 2007. "The role of clustering in rural industrialization: A Case Study of the Footwear Industry in Wenzhou," IFPRI discussion papers 705, International Food Policy Research Institute (IFPRI).
  9. Hu, Dinghuan & Fuller, Frank H. & Reardon, Thomas, 2004. "Impact of the Rapid Development of Supermarkets on the Dairy Industry in China, The," Staff General Research Papers 12261, Iowa State University, Department of Economics.
  10. Dinghuan Hu & Thomas Reardon & Scott Rozelle & Peter Timmer & Honglin Wang, 2004. "The Emergence of Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's Agricultural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 557-586, 09.
  11. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(3), pages 331-50.
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