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Got Milk? The Rapid Rise of China's Dairy Sector and Its Future Prospects

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

With the rapid growth in Chinaï¾’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 Chinaï¾’s dairy sector and to assess the nature of the sectorï¾’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.

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File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/paper_12363.pdf
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12363.

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Date of creation: 27 May 2005
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Publication status: Published in Food Policy, June 2006, vol. 31, pp. 201-215
Handle: RePEc:isu:genres:12363
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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  1. Hu, Dinghuan & Fuller, Frank H. & Reardon, Thomas, 2004. "Impact of the Rapid Development of Supermarkets on the Dairy Industry in China, The," Staff General Research Papers 12261, Iowa State University, Department of Economics.
  2. Veeck, Ann & Veeck, Gregory, 2000. "Consumer Segmentation and Changing Food Purchase Patterns in Nanjing, PRC," World Development, Elsevier, vol. 28(3), pages 457-471, March.
  3. Frank H. Fuller & John C. Beghin & Scott Rozelle, 2004. "Urban Demand for Dairy Products in China: Evidence from New Survey Data," Center for Agricultural and Rural Development (CARD) Publications 04-wp380, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  4. Huang, Jikun & Rozelle, Scott, 1995. "Market development and food demand in rural China," FCND discussion papers 4, International Food Policy Research Institute (IFPRI).
  5. Huang, Jikun & Bouis, Howarth, 2001. "Structural changes in the demand for food in Asia: empirical evidence from Taiwan," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 26(1), October.
  6. Allan N. Rae & Hengyun Ma & Jikun Huang & Scott Rozelle, 2006. "Livestock in China: Commodity-Specific Total Factor Productivity Decomposition Using New Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 680-695.
  7. Jin, Songqing & Huang, Jikun & Hu, Ruifa & Rozelle, Scott, 2001. "The Creation And Spread Of Technology And Total Factor Productivity In China'S Agriculture," Working Papers 11981, University of California, Davis, Department of Agricultural and Resource Economics.
  8. Liu, Kang Ernest & Chern, Wen S., 2003. "Food Demand In Urban China: An Application Of A Multi-Stage Censored Demand System," 2003 Annual meeting, July 27-30, Montreal, Canada 21919, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Gould, Brian W. & Dong, Diansheng, 2004. "Product Quality And The Demand For Food: The Case Of Urban China," 2004 Annual meeting, August 1-4, Denver, CO 20010, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. 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.
  11. 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.
  12. Guo, Xuguang, et al, 2000. "Structural Change in the Impact of Income on Food Consumption in China, 1989-1993," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 737-60, July.
  13. Kumbhakar, Subal C & Heshmati, Almas & Hjalmarsson, Lennart, 1999. " Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(3), pages 405-24, September.
  14. Robert E. Lucas & Jr., 1967. "Adjustment Costs and the Theory of Supply," Journal of Political Economy, University of Chicago Press, vol. 75, pages 321.
  15. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  16. repec:ags:auagre:126561 is not listed on IDEAS
  17. Dinghuan Hu & Thomas Reardon & Scott Rozelle & Peter Timmer & Honglin Wang, 2004. "The Emergence of Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's Agricultural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 557-586, 09.
  18. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  19. Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
  20. Carter, Colin A. & Chen, Jing & Chu, Baojin, 2003. "Agricultural productivity growth in China: farm level versus aggregate measurement," China Economic Review, Elsevier, vol. 14(1), pages 53-71.
  21. Zhang, Wei & Wang, Qingbin, 2003. "Changes In China'S Urban Food Consumption And Implications For Trade," 2003 Annual meeting, July 27-30, Montreal, Canada 21986, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  22. Fuller, Frank H. & Hu, Dinghuan, 2005. "Dairy Products in Southwestern China: Anecdotal Evidence from Kunming," Staff General Research Papers 12395, Iowa State University, Department of Economics.
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