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Farmer Participation, Processing, and the Rise of Dairy Production in Greater Beijing, P. R. China


  • Jikun Huang
  • Yunhua Wu
  • Zhijian Yang
  • Scott Rozelle
  • Jacinto Fabiosa
  • Fengxia Dong


With rapid income growth, dairy production and consumption in China have increased significantly. The emergence of the dairy sector provides opportunities for farmers to participate in a high‐value, potentially more lucrative enterprise. The overall goal of this paper is to analyze the major determinants of farmer participation in dairy production. Our main questions include whether or not the pace of the emergence of the dairy processing industry has affected the ability of farmers (especially small and relatively poor ones) to participate in dairy production; and whether or not it has limited the expansion of their herd size. Based on household, village, and processor surveys conducted in the Greater Beijing region, our analysis indicates that the location of dairy processing firms is one key factor that determines the participation of farmers in dairy production. Although other factors affect participation and herd size, including road access and the ability to find employment off the farm (which affects the opportunity cost of household members), the proximity to a dairy processor is shown to be one of the major factors that has encouraged the growth of dairy production for a given farmer in a specific region during the past decade. The results also show that poor, less educated farmers with relatively less access to land are not excluded from the expansion of the Greater Beijing dairy market. La production laitière et la consommation ont augmenté considérablement en Chine, en raison de la croissance rapide du revenu. Pour les producteurs, la croissance du secteur laitier offre des occasions de se lancer dans des activités à forte valeur, potentiellement plus lucratives. L’objectif global du présent article consiste à analyser les principaux déterminants de la participation des producteurs à la production laitière. Nous nous sommes alors posé deux questions. Le rythme d’émergence de l’industrie de la transformation de produits laitiers influence‐t‐il ou non la capacité des producteurs (en particulier les petits producteurs de condition modeste) à se lancer dans la production laitière? Le rythme d’émergence de cette industrie limite‐t‐il ou non l’expansion de la taille de leurs troupeaux? Une analyse des enquêtes menées auprès des ménages, des villages et des transformateurs dans l’agglomération pékinoise a révélé que le lieu où se trouvent les entreprises de transformation de produits laitiers est l’un des principaux facteurs qui déterminent la participation des producteurs à la production laitière. Bien que d’autres facteurs influencent la participation des producteurs et la taille des troupeaux, notamment l’accès routier et la capacitéà trouver un emploi à l’extérieur de la ferme (qui influence le coût d’opportunité/d’option des membres du ménage), la proximité d’une usine de transformation serait l’un des principaux facteurs qui ont encouragé la croissance de la production laitière, pour un producteur donné dans une région en particulier, au cours des dix dernières années. Les résultats ont également indiqué que les producteurs de condition modeste, moins instruits et ayant un accès restreint à des terres ne sont pas exclus de l’expansion du marché laitier dans l’agglomération pékinoise.

Suggested Citation

  • Jikun Huang & Yunhua Wu & Zhijian Yang & Scott Rozelle & Jacinto Fabiosa & Fengxia Dong, 2010. "Farmer Participation, Processing, and the Rise of Dairy Production in Greater Beijing, P. R. China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 321-342, September.
  • Handle: RePEc:bla:canjag:v:58:y:2010:i:3:p:321-342
    DOI: 10.1111/j.1744-7976.2010.01185.x

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    References listed on IDEAS

    1. Huang, Jikun & Rozelle, Scott, 1998. "Market development and food demand in rural China," China Economic Review, Elsevier, vol. 9(1), pages 25-45.
    2. Luo, Renfu & Zhang, Linxiu & Huang, Jikun & Rozelle, Scott, 2007. "Elections, fiscal reform and public goods provision in rural China," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 583-611, September.
    3. Hengyun Ma & Jikun Huang & Frank Fuller & Scott Rozelle, 2006. "Getting Rich and Eating Out: Consumption of Food Away from Home in Urban China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 101-119, March.
    4. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.
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    1. repec:bla:agecon:v:49:y:2018:i:6:p:787-797 is not listed on IDEAS
    2. Jia, Xiangping & Huang, Jikun & Luan, Hao & Rozelle, Scott & Swinnen, Johan, 2012. "China’s Milk Scandal, government policy and production decisions of dairy farmers: The case of Greater Beijing," Food Policy, Elsevier, vol. 37(4), pages 390-400.
    3. Zhong, Zhen & Chen, Shufen & Kong, Xiangzhi & Tracy, Megan, 2014. "Why improving agrifood quality is difficult in China: Evidence from dairy industry," China Economic Review, Elsevier, vol. 31(C), pages 74-83.

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