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Rapid Rise of China's Dairy Sector: Factors Behind the Growth in Demand and Supply, The

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  • Frank H. Fuller
  • Jikun Huang
  • Hengyun Ma
  • Scott Rozelle

Abstract

With the rapid growth in China's dairy industry, a number of recent papers have addressed either the supply or the demand trends for dairy products in China. None, however, presents a systematic explanation for the recent growth in both the supply and demand for dairy products. The goal of this paper is to sketch a more comprehensive picture of China's dairy sector and to assess the nature of the sector's development in the coming decades. Drawing upon several empirical studies, we examine the trends in dairy product consumption to create a composite picture of the factors underlying the recent growth. We also empirically investigate the sources of production gains in milk supply and assess the relative importance of expanding herd size, changes in the nature of production, technological change, and improvements in efficiency to the overall growth of milk production.

Suggested Citation

  • Frank H. Fuller & Jikun Huang & Hengyun Ma & Scott Rozelle, 2005. "Rapid Rise of China's Dairy Sector: Factors Behind the Growth in Demand and Supply, The," Center for Agricultural and Rural Development (CARD) Publications 05-wp394, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:05-wp394
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    References listed on IDEAS

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    1. Somwaru, Agapi & Zhang, Xiaohui & Tuan, Francis C., 2003. "China'S Hog Production Structure And Efficiency," 2003 Annual meeting, July 27-30, Montreal, Canada 22003, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Fuller, Frank H. & Hu, Dinghuan, 2005. "Dairy Products in Southwestern China: Anecdotal Evidence from Kunming," Staff General Research Papers Archive 12395, Iowa State University, Department of Economics.
    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, Department of Agriculture and Food Systems, vol. 12.
    4. Zhou, Zhang-Yue & Tian, Wei-Ming & Zhou, Jun-Lin, 2002. "The Emerging Dairy Economy in China: Production, Consumption and Trade Prospects," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 174063, Australian Agricultural and Resource Economics Society.
    5. repec:ags:auagre:126561 is not listed on IDEAS
    6. Zhou, Zhang-Yue & Tian, Wei-Ming & Zhou, Jun-Lin, 2002. "The Emerging Dairy Economy in China: Production, Consumption and Trade Prospects," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 10, pages 1-17, September.
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    Cited by:

    1. Maurice Doyon, 2011. "Canada's Dairy Supply Management: Comprehensive Review and Outlook for the Future," CIRANO For discussion... 2011dt-01, CIRANO.
    2. Phil Briggs & Carly Harker & Tim Ng & Aidan Yao, 2011. "Fluctuations in the international prices of oil, dairy products, beef and lamb between 2000 and 2008: A review of market-specific demand and supply factors," Reserve Bank of New Zealand Discussion Paper Series DP2011/02, Reserve Bank of New Zealand.
    3. Dong, Fengxia, 2006. "The outlook for Asian dairy markets: The role of demographics, income, and prices," Food Policy, Elsevier, vol. 31(3), pages 260-271, June.
    4. Hussain, Safdar & Ahmed, Wasim & Rabnawaz, Ambar & Jafar, Rana Muhammad Sohail & Saqib, Zulkaif Ahmed & Ullah, Sana & JianZhou, Yang, 2016. "Client Intentions and Buying Behavior with Regard of Dairy Products-Review," MPRA Paper 70383, University Library of Munich, Germany.
    5. Beghin, John C., 2006. "Evolving dairy markets in Asia: Recent findings and implications," Food Policy, Elsevier, vol. 31(3), pages 195-200, June.
    6. Huang, Jikun & Wu, Yunhua & Yang, Zhijian & Rozelle, Scott & Fabiosa, Jacinto & Dong, Fengxia, 2012. "Marketing China's milk: A case study of the sales activity of dairy farmers in greater Beijing," China Economic Review, Elsevier, vol. 23(3), pages 675-689.
    7. Ma, Hengyun & Rae, Allan N. & Huang, Jikun & Rozelle, Scott, 2006. "Enhancing Productivity on Dairy Farms in China: Taking the Cows to Town," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 174719, Australian Agricultural and Resource Economics Society.

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    Keywords

    China; consumption; dairy; milk supply; stochastic production frontier; total factor productivity.;
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