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Demand for milk quantity and safety in urban China: evidence from Beijing and Harbin

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  • Leilei Cheng
  • Changbin Yin
  • Hsiaoping Chien

Abstract

type="main" xml:id="ajar12065-abs-0001"> Urban households account for most of the milk consumption in China, but their consumption is hampered by safety concerns. Using survey data collected in Beijing and Harbin in 2010, this paper simultaneously analyses urban households' milk consumption using a multiple linear model and their willingness-to-pay for milk safety using an ordered choice model. The results of this study show that as income increases, urban households consume more milk and are willing to pay a higher premium for milk safety. Modern food marketing channels play a positive role in stimulating milk consumption and building consumers' confidence in milk safety. The growth in the elderly population influences milk consumption positively, but their demand for milk safety is negatively affected by higher price. The combined analysis of households' demand for milk quantity and safety may be useful to the Chinese government in promoting the development of the domestic milk industry and to dairy firms in exploring the milk market in China.

Suggested Citation

  • Leilei Cheng & Changbin Yin & Hsiaoping Chien, 2015. "Demand for milk quantity and safety in urban China: evidence from Beijing and Harbin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), pages 275-287, April.
    • Handle: RePEc:bla:ajarec:v:59:y:2015:i:2:p:275-287
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    File URL: http://hdl.handle.net/10.1111/ajar.2015.59.issue-2
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    Cited by:

    1. Yuwen, Feng & Hsiaoping, Chien, 2020. "Consumers’ Preferences towards Nutrition-modified Milk in Urban Areas of China with Rating-based Conjoint Analysis," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 22.
    2. Permani, Risti, 2020. "FTA, Exchange rate pass-through and export price behavior – Lessons from the Australian dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(01), January.
    3. Xiang Wu & Bin Hu & Jie Xiong, 2020. "Understanding Heterogeneous Consumer Preferences in Chinese Milk Markets: A Latent Class Approach," Post-Print hal-02489646, HAL.
    4. Zhong, Shen & Li, Junwei & Qu, Yi, 2022. "Green total factor productivity of dairy cow in China: Key facts from scale and regional sector," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    5. Bo Chen & Wuyang Hu & Qingjie Zhou, 2020. "Effects of local and national advertising across brands: the case of yogurt in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1260-1281, October.
    6. Risti Permani, 2021. "FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 192-221, January.
    7. Chen, Bo & Hu, Wuyang & Zhou, Qingjie, 2020. "Effects of local and national advertising across brands: the case of yogurt in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    8. Shengying Zhai & Qihui Chen & Wenxin Wang, 2019. "What Drives Green Fodder Supply in China?—A Nerlovian Analysis with LASSO Variable Selection," Sustainability, MDPI, vol. 11(23), pages 1-17, November.

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