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Chinese animal product consumption in the 1990s

  • Hengyun Ma
  • Allan Rae
  • Jikun Huang
  • Scott Rozelle

Chinese animal product consumption behaviour was analysed for both urban and rural households using a complete regional consumption dataset that was augmented to include away-from-home consumption. Seven animal product expenditure share equations were estimated with an extended Almost Ideal Demand System model. The results suggest that Chinese consumers will continue to increase their consumption of animal products, but that consumption patterns have changed in the 1990s. A large percentage of household animal product expenditure is still on pork. However, the shares for aquatic and poultry products consumption will increase substantially. As a consequence, the pork expenditure share will be gradually reduced as incomes grow and diet preferences change in both urban and rural households. There are significant differences in animal product consumption preferences across regions of China. As a result, studies that omit regional dummy variables in their demand systems can produce different expenditure and price parameters. The present paper also found that many of the estimates of elasticities and marginal expenditure shares would be rather different if the data ignored consumption away from home. Copyright Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Ltd 2004.

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Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 48 (2004)
Issue (Month): 4 (December)
Pages: 569-590

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Handle: RePEc:bla:ajarec:v:48:y:2004:i:4:p:569-590
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  1. Frank H. Fuller & Dermot J. Hayes & Darnell B. Smith, 1999. "Reconciling Chinese Meat Production and Consumption Data," Center for Agricultural and Rural Development (CARD) Publications 99-wp210, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. Fan, Shenggen & Cramer, Gail & Wailes, Eric, 1994. "Food demand in rural China: evidence from rural household survey," Agricultural Economics, Blackwell, vol. 11(1), pages 61-69, September.
  3. Wang, Ji-Min & Zhou, Zhang-Yue & Yang, Jun, 2004. "How Much Animal Product do the Chinese Consume? Empirical Evidence from Household Surveys," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 12.
  4. Rae, Allan N., 1998. "The effects of expenditure growth and urbanisation on food consumption in East Asia: a note on animal products," Agricultural Economics, Blackwell, vol. 18(3), pages 291-299, May.
  5. Han, Tong & Wahl, Thomas I., 1998. "China'S Rural Household Demand For Fruit And Vegetables," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July.
  6. Huang, Jikun & Bouis, Howarth, 2001. "Structural changes in the demand for food in Asia: empirical evidence from Taiwan," Agricultural Economics, Blackwell, vol. 26(1), pages 57-69, October.
  7. X.M. Gao & Eric J. Wailes & Gail L. Cramer, 1996. "A Two-Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 604-613.
  8. Rae, Allan N., 1998. "The effects of expenditure growth and urbanisation on food consumption in East Asia: a note on animal products," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(3), May.
  9. Gao, X. M. & Wailes, Eric J. & Cramer, Gail L., 1996. "Partial Rationing and Chinese Urban Household Food Demand Analysis," Journal of Comparative Economics, Elsevier, vol. 22(1), pages 43-62, February.
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