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

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

Abstract

"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." Copyright (c) 2010 Canadian Agricultural Economics Society.

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
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    Cited by:

    1. 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.
    2. 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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