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Consumer Behavior in China

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Consumer Behavior in China

Abstract

This report documents data and other information gathered from a survey of urban

households in Beijing, Shanghai, and Guangzhou, China. The survey was conducted as

part of a research project aimed at understanding the evolution of dairy markets in Asia

and the implications for dairy product trade. The survey data provide insights into the

purchasing behavior and attitudes of urban consumers in China with respect to dairy

products. The report describes the survey and collection process, summarizes selected

data from the survey, and provides anecdotal information about the development of dairy

production, processing, and product marketing in China.

Keywords: China, dairy products, demand, production, supply chain, survey data.

CHINA'S DAIRY MARKET: SURVEY RESULTS FOR CONSUMER

DEMAND AND SUPPLY CHARACTERISTICS

Introduction

This report documents data and other information gathered from a survey of 314

urban households in Beijing, Shanghai, and Guangzhou, China. The survey was

conducted in the fall of 2001 as part of a research project aimed at understanding the

evolution of dairy markets in Asia and the implications for dairy product trade. This

research was funded by the U.S. Department of Agriculture (USDA) through the National

Research Initiative Competitive Grants Program (NRICGP). Two primary objectives of

the research proposal were to collect dairy market data for key countries in Asia and to

estimate demand equations for dairy products. The information gathered under these two

objectives is intended for use in a policy simulation exercise to assess the impacts of

trade reforms in Asian dairy markets.

China's National Statistical Bureau (NSB) collects a wide range of expenditure and

demographic data from urban and rural households through its annual surveys. Dairy

products have historically played a small role in household food consumption for the vast

majority of Chinese consumers; consequently, the NSB household surveys gather only

limited data about expenditures on dairy products. Expenditures on fresh milk, yogurt,

and milk powder constitute the bulk of Chinese consumer outlays on dairy products, and

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