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

Author

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

Abstract

Currently per capita consumption of dairy products in China is low. In view of China’s strong economic growth and the resulting higher consumer income, whether this 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 those major dairy exporters. Increased understanding of the Chinese dairy markets and increased attention to modifying their products to suit the tastes of the Chinese are essential for dairy exporters to succeed in the Chinese market.

Suggested Citation

  • Zhou, Zhang-Yue & Tian, Wei-Ming & Zhou, Jun-Lin, 2002. "The Emerging Dairy Economy in China: Production, Consumption and Trade Prospects," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 174063, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare02:174063
    DOI: 10.22004/ag.econ.174063
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    References listed on IDEAS

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    1. JooHo Song & Daniel A. Sumner, 1999. "Dairy Demand, Supply and Policy in Korea: Potential for International Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 133-142, December.
    2. Zhou, Zhang-Yue & Tian, Wei-Ming & Liu, Xi-An & Wan, Guang-Hua, 2001. "An Issue of Debate: China’s Feedgrain Demand and Supply," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 171980, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. 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.
    2. 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," Center for Agricultural and Rural Development (CARD) Publications 05-wp394, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. 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.
    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. 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.
    6. 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.
    7. Junfei Bai & Thomas I. Wahl & Jill J. McCluskey, 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 133-147, June.
    8. 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.
    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. 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.
    11. 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.
    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.

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