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• W3125406963 abstract "This paper synthesizes recent research and new empirical findings to build a more comprehensive understanding of developments in China’s dairy sector. China’s tremendous rise in dairy demand has been driven by several mutually reinforcing factors: including rapid income growth, promotion by the government and dairy industry, changes in urban lifestyles, and the development of new, more sophisticated marketing channels. Domestic milk output has grown to satisfy rising demand largely by increasing the dairy herd. Substantial increases in productivity have been achieved through technology adoption, but there is evidence that the torrid growth has created inefficiencies because adaptations to marketing rules, infrastructure, and institutions have not kept pace with the changing environment. These results suggest there is ample room for future growth in both domestic milk production and dairy demand, but multinational firms and imported products will likely play and increasing role as China’s dairy market continues to develop. Got Milk? The Rapid Rise of China’s Dairy Sector and Its Future Prospects In the 1990s, during the second decade after China’s emergence from its period of Socialist isolation, Garnaut and Ma (1993) noted that the nation’s food consumption patterns were emerging in ways that were largely consistent with other East Asian nations—with one notable exception. Given China’s income level, the demand for grain, most meat commodities, aquaculture products, fruits and vegetables were at or exceeded the expected levels of consumption. There was only one major commodity that China’s consumers were under consuming: dairy. The average urban resident in 1992 only consumed a milk equivalent of 9.07 kilograms per capita of dairy products, only a fraction of level in many other nations. While Garnaut and Ma (1993) postulated that “different tastes associated with historical contact with international consumption patterns” was the cause for the unusually low consumption of milk in China, we suggest below that historical preferences are only one of the factors influencing dairy demand. Since the mid-1990s the lethargy of China’s dairy sector has disappeared and a large literature has appeared trying to understand it. Demand, especially in urban areas, has exploded (Zhou, Tian, and Zhou, 2002). Dairy production has risen sharply. Internationally there is a scramble to understand the implications China’s emerging dairy sector for world trade. While many papers have appeared recently that address the supply and demand for dairy products in China (Zhou, Tian, and Zhou, 2002; Fuller, Beghin, and Rozelle, 2004; Fuller et al., 2004), we believe that the literature still lacks research that systematically explains the recent emergence of China’s dairy industry and its future demand and supply trends." @default.
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• W3125406963 date "2006-01-01" @default.
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• W3125406963 title "China: Market or Competitor?" @default.
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