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Projections Of Dairy Product Consumption And Trade Opportunities In China

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Author Info
Ma, Hengyun
Rae, Allan

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Abstract

China has been rapidly increasing its consumption and imports of dairy products in recent years. A two-stage demand system was estimated for livestock product consumption in urban China over the 1990s. Total expenditure elasticities for the livestock commodity group and expenditure elasticities for dairy products within the livestock commodity group were calculated. The results suggest that dairy products, even in urban areas, remain luxury goods because of a high expenditure elasticity (1.26). Due to rapidly increasing consumption and the likelihood of inadequate supply growth, China will continue to increase its imports of dairy products to meet its domestic demand. Projections imply that China's imports of dairy products may approach 30 percent of its total domestic consumption by 2005. Due to differences in regional income and population growth rates, increases in dairy products consumption may occur especially in central and coastal areas, where potential trade opportunities may exist.

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Publisher Info
Paper provided by Massey University, Centre for Applied Economics and Policy Studies in its series China Agriculture Project Working Papers with number 23690.

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Date of creation: 2003
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Handle: RePEc:ags:mascap:23690

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Keywords: Consumer/Household Economics;

References listed on IDEAS
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  1. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
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  1. Dong, Fengxia, 2005. "Outlook for Asian Dairy Markets: The Role of Demographics, Income, and Prices," Staff General Research Papers 12379, Iowa State University, Department of Economics. [Downloadable!]
  2. Fengxia Dong, 2005. "Outlook for Asian Dairy Markets: The Role of Demographics, Income, and Prices, The," Center for Agricultural and Rural Development (CARD) Publications 05-wp399, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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