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Rapid Rise of China's Dairy Sector: Factors Behind the Growth in Demand and Supply, The

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Author Info
Frank H. Fuller
Jikun Huang
Hengyun Ma
Scott Rozelle
Abstract

With the rapid growth in China's dairy industry, a number of recent papers have addressed either the supply or the demand trends for dairy products in China. None, however, presents a systematic explanation for the recent growth in both the supply and demand for dairy products. The goal of this paper is to sketch a more comprehensive picture of China's dairy sector and to assess the nature of the sector's development in the coming decades. Drawing upon several empirical studies, we examine the trends in dairy product consumption to create a composite picture of the factors underlying the recent growth. We also empirically investigate the sources of production gains in milk supply and assess the relative importance of expanding herd size, changes in the nature of production, technological change, and improvements in efficiency to the overall growth of milk production.

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Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 05-wp394.

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Date of creation: May 2005
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Handle: RePEc:ias:fpaper:05-wp394

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Keywords: China consumption dairy milk supply stochastic production frontier total factor productivity.

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jin, Songqing, et al, 2002. " The Creation and Spread of Technology and Total Factor Productivity in China's Agriculture," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(4), pages 916-30, November. [Downloadable!] (restricted)
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  2. Kumbhakar, Subal C & Heshmati, Almas & Hjalmarsson, Lennart, 1999. " Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(3), pages 405-24, September. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. CARTER, Colin A. & CHEN, Jing & CHU, Baojin, 2003. "Agricultural productivity growth in China: farm level versus aggregate measurement," China Economic Review, Elsevier, vol. 14(1), pages 53-71. [Downloadable!] (restricted)
  5. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  6. Subal Kumbhakar & M. Denny & M. Fuss, 2000. "Estimation and decomposition of productivity change when production is not efficient: a paneldata approach," Econometric Reviews, Taylor and Francis Journals, vol. 19(4), pages 312-320. [Downloadable!] (restricted)
  7. Frank H. Fuller & Dermot J. Hayes & Darnell B. Smith, 1999. "Reconciling Chinese Meat Production and Consumption Data," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp210, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
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  8. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  9. Fuller, Frank H. & Hu, Dinghuan, 2005. "Dairy Products in Southwestern China: Anecdotal Evidence from Kunming," Staff General Research Papers 12395, Iowa State University, Department of Economics.
  10. Fuller, Frank H. & Beghin, John C. & Rozelle, Scott, 2004. "Urban Demand for Dairy Products in China: Evidence from New Survey Data," Staff General Research Papers 12221, Iowa State University, Department of Economics. [Downloadable!]
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  11. 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. [Downloadable!] (restricted)
  12. Robert E. Lucas & Jr., 1967. "Adjustment Costs and the Theory of Supply," Journal of Political Economy, University of Chicago Press, vol. 75, pages 321. [Downloadable!] (restricted)
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  1. John C. Beghin, 2005. "Dairy Markets in Asia: An Overview of Recent Findings and Implications," Center for Agricultural and Rural Development (CARD) Publications 05-bp47, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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  2. Beghin, John C., 2006. "Evolving Dairy Markets in Asia: Recent Findings and Implications," Staff General Research Papers 12506, Iowa State University, Department of Economics. [Downloadable!]
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  3. 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!]
  4. 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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