IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/200701010800001399.html
   My bibliography  Save this paper

Consumption of dairy products in urban China: results from Beijing, Shangai and Guangzhou

Author

Listed:
  • Fuller, Frank
  • Beghin, John
  • Rozelle, Scott

Abstract

Using urban survey data collected by the authors in 2001–02, this paper analyses demographics, cultural factors and purchasing behaviours influencing the consumption of fresh milk, yogurt, ice cream and powered milk in Beijing, Shanghai and Guangzhou, China. Results from estimation of a double-hurdle model of consumption show that income and marketing channels are the key determinants of milk consumption levels; however, education, advertising and convenience play a more important role in consumption of other dairy products. There is some evidence that milk powder, as a consumer good, may be becoming an inferior product in urban China. Finally, the survey data suggest that the growing sophistication of China's retail sector is influencing consumption of dairy products.

Suggested Citation

  • Fuller, Frank & Beghin, John & Rozelle, Scott, 2007. "Consumption of dairy products in urban China: results from Beijing, Shangai and Guangzhou," ISU General Staff Papers 200701010800001399, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:200701010800001399
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/1a144236-bdda-4680-bd60-cab4f3ca8674/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jensen, Kim, 1995. "Fluid Milk Purchase Patterns in the South: Effects of Use of Nutrition Information and Household Characteristics," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 644-657, December.
    2. Beghin, John C. & Metcalfe, Mark R., 2000. "Market Hogs?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 15(1), pages 1-4.
    3. 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).
    4. 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).
    5. Angulo, Ana Maria & Gil, Jose Maria & Gracia, Azucena, 2001. "The demand for alcoholic beverages in Spain," Agricultural Economics, Blackwell, vol. 26(1), pages 71-83, October.
    6. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    7. Rutherford, A. S., 1999. "Meat and milk self-sufficiency in Asia: forecast trends and implications," Agricultural Economics, Blackwell, vol. 21(1), pages 21-39, August.
    8. Frank H. Fuller & John C. Beghin & Dinghuan Hu & Scott Rozelle, 2004. "China's Dairy Market: Consumer Demand Survey and Supply Characteristics," Center for Agricultural and Rural Development (CARD) Publications 04-sr99, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Huang, Jikun & Bouis, Howarth E., 1996. "Structural changes in the demand for food in Asia," 2020 vision briefs 41, International Food Policy Research Institute (IFPRI).
    10. Noel Blisard & James Blaylock, 1993. "Distinguishing between Market Participation and Infrequency of Purchase Models of Butter Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 314-320.
    11. Graciela E. Gutman, 2002. "Impact of the Rapid Rise of Supermarkets on Dairy Products Systems in Argentina," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 409-427, September.
    12. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    13. repec:ags:auagre:126561 is not listed on IDEAS
    14. Deaton, Angus, 1988. "Quality, Quantity, and Spatial Variation of Price," American Economic Review, American Economic Association, vol. 78(3), pages 418-430, June.
    15. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
    16. Brian W. Gould, 1992. "At-Home Consumption of Cheese: A Purchase-Infrequency Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 453-459.
    17. Allan N. Rae, 1997. "Changing food consumption patterns in East Asia: Implications of the trend towards livestock products," Agribusiness, John Wiley & Sons, Ltd., vol. 13(1), pages 33-44.
    18. Ruud, Paul A., 2000. "An Introduction to Classical Econometric Theory," OUP Catalogue, Oxford University Press, number 9780195111644.
    19. Ma, Hengyun & Rae, Allan N., 2004. "Projections of Dairy Product Consumption and Trade Opportunities in China," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 12.
    20. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    21. Amos Golan & Enrico Moretti & Jeffrey M.Perloff, 2004. "A Small-Sample Estimator for the Sample-Selection Model," Econometric Reviews, Taylor & Francis Journals, vol. 23(1), pages 71-91.
    22. 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.
    23. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    24. 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).
    25. 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.
    26. repec:bla:devpol:v:22:y:2004:i::p:557-586 is not listed on IDEAS
    27. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    28. 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.
    29. Ahn, Hyungtaik & Powell, James L., 1993. "Semiparametric estimation of censored selection models with a nonparametric selection mechanism," Journal of Econometrics, Elsevier, vol. 58(1-2), pages 3-29, July.
    30. Paris, Quirino & Caputo, Michael R., 2001. "Sensitivity Of The Gme Estimates To Support Bounds," Working Papers 11966, University of California, Davis, Department of Agricultural and Resource Economics.
    31. Steven T. Yen & Helen H. Jensen, 1995. "Determinants of Household Expenditures on Alcohol," Center for Agricultural and Rural Development (CARD) Publications 95-wp144, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    32. A.S. Rutherford, 1999. "Meat and milk self‐sufficiency in Asia: forecast trends and implications," Agricultural Economics, International Association of Agricultural Economists, vol. 21(1), pages 21-39, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cheng, Leilei & Yin, Changbin & Chien, Hsiaoping, 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), April.
    2. Pei XU & Shi ZHENG & Mesbah MOTAMED, 2010. "Perceived risks and safety concerns about fluid milk among Chinese college students," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(2), pages 67-78.
    3. 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.
    4. Ahmed, Wasim & Hussain, Safdar & Jafar, Rana Muhammad Sohail & Guang-Ju, Wang & Rabnawaz, Ambar & Saqib, Zulkaif Ahmed & JianZhou, Yang, 2016. "Impacts of Trade Liberalization on Dairy Industry in China," MPRA Paper 70385, University Library of Munich, Germany.
    5. Rongzhu Cheng & Qianqian Wang & Longbao Wei, 2022. "Income growth, employment structure transition and the rise of modern markets: The impact of urbanization on residents’ consumption of dairy products in China," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-17, April.
    6. Rezgar Mohammed, 2020. "The Impact of Income on Household Expenditure on Dairy Products: Evidence from the United States Dairy Market," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(1), pages 16-23.
    7. Yuquan Chen & Xiaohua Yu, 2022. "Estimating market power for the Chinese fluid milk market with imported products," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 386-401, April.
    8. Boimah, Mavis & Weible, Daniela, 2022. "Consumer behavior towards imported dairy products: a cross-cultural analysis of products from three origins in Ghana and Senegal," Conference papers 333409, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Huidan Xue & Chenguang Li & Liming Wang, 2021. "Spatial Price Dynamics and Asymmetric Price Transmission in Skim Milk Powder International Trade: Evidence from Export Prices for New Zealand and Ireland," Agriculture, MDPI, vol. 11(9), pages 1-20, September.
    10. 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.
    11. Xiu, Changbai & Klein, K.K., 2010. "Melamine in milk products in China: Examining the factors that led to deliberate use of the contaminant," Food Policy, Elsevier, vol. 35(5), pages 463-470, October.
    12. Shaosheng Jin & Rao Yuan & Yan Zhang & Xin Jin, 2019. "Chinese Consumers’ Preferences for Attributes of Fresh Milk: A Best–Worst Approach," IJERPH, MDPI, vol. 16(21), pages 1-16, November.
    13. Hailong Yu & H. Holly Wang & Binglong Li, 2018. "Production system innovation to ensure raw milk safety in small holder economies: the case of dairy complex in China," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 787-797, November.
    14. Lei, Lei & Shimokawa, Satoru, 2020. "Promoting dietary guidelines and environmental sustainability in China," China Economic Review, Elsevier, vol. 59(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akinyosoye, Vincent O., 2007. "Demand For Dairy Products In Nigeria: Evidence From The Nigerian," Journal of Rural Economics and Development, University of Ibadan, Department of Agricultural Economics, vol. 16, pages 1-14.
    2. 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.
    3. Beibei Wu & Xudong Shang & Yongfu Chen, 2021. "Household dairy demand by income groups in an urban Chinese province: A multistage budgeting approach," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 629-649, July.
    4. Bai, Junfei & Wahl, Thomas I. & McCluskey, Jill J., 2008. "Fluid milk consumption in urban Qingdao, China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-15.
    5. David Aristei & Federico Perali & Luca Pieroni, 2008. "Cohort, age and time effects in alcohol consumption by Italian households: a double-hurdle approach," Empirical Economics, Springer, vol. 35(1), pages 29-61, August.
    6. Moon, Wanki, 2002. "Estimating The Effect Of Health Knowledge In The Consumption Of Soy-Based Foods," 2002 Annual meeting, July 28-31, Long Beach, CA 19681, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Akerele, Dare & Tiffin, R. & Srinivasan, C. S., 2013. "Household Food Demand in Nigeria: an Application of Multivariate Double-hurdle Model," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158700, Agricultural Economics Society.
    8. Beghin, John C., 2006. "Evolving dairy markets in Asia: Recent findings and implications," Food Policy, Elsevier, vol. 31(3), pages 195-200, June.
    9. Muhammad Jehangir Khan & G. M. Arif, 2016. "Household Charity in Pakistan: Magnitude, Determinants and Its Importance for the Well-being of Society," PIDE-Working Papers 2016:141, Pakistan Institute of Development Economics.
    10. James Carroll & Siobhan McCarthy & Carol Newman, 2005. "An Econometric Analysis of Charitable Donations in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 36(3), pages 229-249.
    11. Joshua Byrnes & Anthony Shakeshaft & Dennis Petrie & Christopher Doran, 2016. "Is response to price equal for those with higher alcohol consumption?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 23-29, January.
    12. Jensen, Kimberly L., 1995. "Fluid Milk Purchase Patterns In The South: Effects Of Use Of Nutrition Information And Household Characteristics," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    13. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    14. Atanu Saha & Oral Capps & Patrick Byrne, 1997. "Calculating marginal effects in models for zero expenditures in household budgets using a Heckman-type correction," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1311-1316.
    15. Jikun Huang & Yunhua Wu & Zhijian Yang & Scott Rozelle & Jacinto F. Fabiosa & Fengxia Dong, 2008. "Farmer Participation, the Dairy Industry, and the Rise of Dairy Production in China," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 08-wp476, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    16. Gould, Brian W., 1995. "Factors Affecting U.S. Demand For Reduced-Fat Milk," Staff Papers 12646, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    17. Mathias Sinning, 2011. "Determinants of savings and remittances: empirical evidence from immigrants to Germany," Review of Economics of the Household, Springer, vol. 9(1), pages 45-67, March.
    18. Schwierz, Christoph, 2003. "The Effects of Taxes and Socioeconomic Variables on Market Work and Home Production in Norway in the Years 1970 to 2000," Memorandum 33/2003, Oslo University, Department of Economics.
    19. Egemen İPEK, 2019. "An Empirical Study on Alcohol Participation and Consumption Decision in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    20. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2463-2476.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:200701010800001399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.