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Urban Demand for Dairy Products in China: Evidence from Survey Data

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Author Info
Fuller, Frank H.
Beghin, John C.
Rozelle, S.

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Abstract

Using urban survey data collected by the authors in 2001-2002, this paper analyzes demographics, cultural factors, and purchasing behaviors influencing the consumption of fresh milk, yogurt, ice cream, and powered milk in Beijing, Shanghai, and Guangzhou, China. Results from estimation of a double-hurdle model of consumption show that income and marketing channels are the key determinants of milk consumption levels; however, education, advertising, and convenience play a more important role in consumption of other dairy products. There is some evidence that milk powder, as a consumer good, may be becoming an inferior product in urban China. Finally, the survey data suggest that the growing sophistication of China’s retail sector is influencing consumption of dairy products.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12730.

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Date of creation: 23 Feb 2007
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Publication status: Published in Australian Journal of Agricultural & Resource Economics, 2007, Vol. 51, No. 4, pp. 459-474.
Handle: RePEc:isu:genres:12730

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Keywords: dairy products; demand analysis; survey data; limited dependent variable models; China;

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