Junfei Bai

Fluid milk consumption in urban Qingdao, China*

This study relates the social-demographic characteristics of urban Chinese consumers to their consumption of fluid milk. A Tobit model is estimated drawing on individual consumer survey data collected in urban Qingdao in China in 2005. The major results of this study indicate that fluid milk consumption in urban Qingdao is much higher compared to China’s national level. The effect of increased income on milk consumption is positive, as expected. The expansion of modern food retailers also appears to play a positive role by facilitating consumers’ fluid milk consumption and influencing their food shopping patterns. The young and old consume significantly more fluid milk than the middle-aged. Health consciousness of the elderly and the openness of youth to new foods appear to be fuelling these consumption patterns. If the findings of this study apply to other urban regions in China, then as urbanisation continues so also will the trend of increasing fluid milk consumption in China.

Urban economic development, changes in food consumption patterns and land requirements for food production in China

Purpose - – The impact of dietary changes associated with urbanization is likely to increase the demand for land for food production. The purpose of this paper is to examine the impact of urban economic development on changes in food demand and associated land requirements for food production. Design/methodology/approach - – Based on economic estimates from the Almost Ideal Demand System, feed conversion ratios, and crop yields, the authors forecast and compare future dietary patterns and land requirements for two types of urban diets in China. Findings - – The results show that the expenditure elasticities of oil and fat, meat, eggs, aquatic products, dairy, and liquor for the diet of capital cities are greater than those for the diet of small- and medium-sized cities. The authors forecast that capital city residents will experience a more rapid rate of increase in per capita demand of meat, eggs, and aquatic products, which will lead to much higher per capita land requirements. Projections indicate that total per capita land demand for food production in capital cities will increase by 9.3 percent, from 1,402 to 1,533?m2 between 2010 and 2030, while total per capita land demand in small- and medium-sized cities will increase only by 5.3 percent, from 1,192 to 1,255?m2. Originality/value - – The results imply that urban economic development can significantly affect the final outcomes of land requirements for food production. Urban economic development is expected to accelerate the rate of change toward an affluent diet, which can lead to much higher future land requirements.

Direct farm, production base, traceability and food safety in China

Abstract With the rapid growth of Chinas economy, rising demand for safety food has been accompanied by frequent food safety scandals. Given that Chinas farming is dominated by millions of small-scale farms, ensuring food safety is a major challenge facing the public and private sectors. The direct farm (DF) program, initiated in 2008, represents one of the governments major initiatives to modernize the distribution of fresh fruit and vegetables (FFV) and improve food safety. Under the DF program, participating national and international retailers are expected to establish more direct procurement relationships with farm communities. While it is often claimed that greater participation by retailers in the production and post-harvest processing implied the DF program will lead to improved quality, safety and traceability, systematic evidence remains elusive as existing studies are largely narrative, based on case studies, or theoretical inference. Little empirical evidence is available for a broader evaluation of the DF program. This paper aims to fill this gap by assessing the overall performance of a single retailers DF experience with respect to the procurement and food safety of FFV. We use data from a survey of production managers of 35 DF production bases (PBs) spread across 11 provinces, 3 cities and 1 autonomous region in China. The results show a mixture of opportunities and challenges. On one hand, the DF program improves production practices and distribution channels of FFV produced on its PBs, thus facilitating the move of Chinas food system towards improved food safety compliance. On the other hand, significant heterogeneity in the traceability of food and the ability of DF to meet higher safety standards is evident both across major product categories and across household-operated vs. firm-operated PBs. The paper concludes with policy implications.

Demographics, Societal Aging, and Meat Consumption in China

Drawn on the data collected by surveying 1 340 urban households from six cities in China, this paper estimates the impacts of demographic structure and population aging on household meat consumption, by jointly considering meat consumed at home and away from home. Based on the trajectories of population, a simple simulation on meat demand trend in China is conducted subsequently. The results suggest: 1) Meat consumed away from home averagely accounts for near 30% of household total meat consumption in terms of quantity, so that its omission likely leads to a significant underestimate of total meat consumption and misunderstanding the driving forces; 2) population aging significantly and negatively affects per capita meat consumption, suggesting that the expected meat demand in China without considering population aging will be overestimated. The findings from this study have important implications for better understanding the relative issues on Chinas meat consumption under the situation of population aging.

The Economics of Smallholder Rubber Farming in a Mountainous Region of Southwest China: Elevation, Ethnicity, and Risk

While the expansion of smallholder rubber farming in southwest China has contributed to the local rural economy, it has also had negative environmental consequences. The economics and potential risks of smallholder rubber farming remain unclear due to the lack of quantitative evidence. Based on data collected in a comprehensive survey of 612 smallholder rubber farmers in Xishuangbanna, this paper quantifies economic aspects of rubber farming including land use, inputs and outputs, household income composition, and risks. In particular, we compare differences in these parameters associated with ethnicity and elevation. Our results suggest that rubber has taken over the rural economy in the rubber-planting region of Xishuangbanna, where almost 80% of agricultural land is devoted to rubber. On average, rubber farming provides over 40% of smallholder incomes. While smallholder rubber farming is generally highly profitable, it is also highly vulnerable to price fluctuations. Rubber expansion has also reduced diversification and thereby increased household income risk. Most importantly, our analysis shows that the economic performance of smallholder rubber farming differs for different ethnic groups and at different elevations. The results of this study provide important quantitative information on smallholder rubber farming that can inform policymaking and guide future research.

Adoption of intercropping among smallholder rubber farmers in Xishuangbanna, China

ABSTRACT While the expansion of rubber plantations in the mountainous areas of Southern China has contributed to poverty reduction among the indigenous ethnic groups, the concerns about the associated negatives on ecosystems and sustainable development of livelihoods is rising. One of the measures suggested to reduce environmental and economic risks is rubber intercropping. This study uses cross-section data of some 600 rubber farmers in Xishuangbanna, as a basis to develop four empirical models in order to analyse adoption of intercropping at farm and at plot level. Our study shows that only a small proportion of rubber farmers have adopted intercropping, with tea being the most frequently adopted intercrop. However, we also find that intercropping is an important source of income for the household in the lower income category. Intercropping adoption is affected by ethnicity, household wealth and family labour. The choice of intercrops depends on the nature of rubber plots, the age of rubber trees and geography. This study contributes to a better understanding of the transformation path from rubber monoculture to more diversified, rubber-based agroforestry systems and thus can provide important information for agricultural extension services charged with the promotion of sustainable rubber-based livelihood systems in the Mekong area.

Household Engel curve analysis for food, Beijing, China

Purpose - The purpose of this paper is to analyze the income sensitivity of food consumption in Beijing, China, using an original household survey data set collected by the Chinese Academy of Sciences. Design/methodology/approach - An Engel curve model is fit to the household data of nine food categories and 35 food items, and both conditional and unconditional expenditure elasticities of demand are calculated and reported for the nine food groups and the 35 food items. Findings - Workings model fits the data well, and the elasticity estimates are all reasonable in terms of economic theory, size and signs. The results indicate a relative large range in income sensitivity among the nine food groups and 35 food items in response to changes in household food expenditure levels. Originality/value - The research analyzes unique and rich urban household survey data collected by the Chinese Academy of Sciences and is the most comprehensive analysis to date in terms of the number of food items studied for which expenditure elasticities are calculated. These elasticities may be used to study household food consumption patterns, to calculate caloric or nutrient elasticities, to study obesity in China, to study policy prescriptions in terms of taxes and subsidies on food, to infer welfare and affluence, and may be used as inputs into econometric models such as those used by the World Bank, IFPRI, and others.

Food packing: A case study of dining out in Beijing

Food waste results in nutritional losses, ecological damage, and environmental pollution. This survey is conducted in Beijing and aims to determine whether food waste can be reduced by food packing when leftovers are produced at the dining table and to identify factors that affect food packing behavior and the use of leftovers. Based on statistical and econometric analyses of the relationship between leftovers packing and possible factors, this study finds that the age, educational level, employment status, farming experience, environmental protection consciousness, food saving advertisement, families with old members, and reasons for dining out significantly influence the food packing behavior of the consumers. Moreover, the dining environment plays an important role in leftovers packing. People with intimate relationships, such as families, friends, classmates, or colleagues, are more willing to take leftovers home. Business partners do the opposite. Finally, almost all packed leftovers (91.59%) are eaten by people and animals. Therefore, packing leftovers is an excellent approach to reduce food waste.

Dining out, the missing food consumption in China

ABSTRACT Food security concern in China is also the world’s concern. Studies on food consumption in the past, however, often neglected the increasing food consumed away from home (FAFH). Drawn on a survey data recently conducted in nine cities by a week-long diary method, we found that FAFH in urban China accounts for a significant proportion of total food consumption, although its share varies by food category. With substantial expected income growth, overall FAFH consumption will likely continue to rise, but would be negatively affected by the rapid societal aging process, both in dining out probability and per capita consumption level. The main findings of this study have implications for food processing and service industries as well as for studies in food-related environmental issues.

Willingness to pay for “taste of Europe”: geographical origin labeling controversy in China

Purpose Continuing economic growth in emerging markets offers large market opportunities to producers and marketers worldwide; however, market failures due to asymmetric information are often seen when high-quality products enter these “new markets” where recognition rates among consumers are low. The use of “geographical origin” labels as quality signals to overcome asymmetric information problem plays an important role. The purpose of this paper is to compare consumers’ perception and willingness to pay (WTP) for different levels of geographic origin labels to provide insights to the strategic use of origin labels in emerging markets. Design/methodology/approach A consumer survey on geographic labeling for imported dairy products was carried out in Beijing, China in May 2015. Under the “products of European Union (EU)” range, the authors used “product of Ireland” as a case study for the country-specific origin label. Information on consumer demographic, dairy consumption, safety perceptions, knowledge on Ireland and Irish products, as well as WTP for different geographic labeling and product attributes were collected from 307 face-to-face interviews. WTP was elicited using double-bounded contingent valuation method, and estimated with maximum log-likelihood function. Findings The authors found that consumers are willing to pay premium prices for both of these geographical origin indicators, but the EU label had slightly higher WTP results. However, the controversial situation is that although the EU label has a better chance than the country-specific label in signaling premium quality to Chinese consumers, EU labeling at its best signals an average quality across the EU counties. For premium products with above average quality, using generic EU labeling has a potential drawback to the establishment of product differentiation. Originality/value This study is the first to evaluate Chinese consumers’ WTP for EU generic origin label for dairy products in comparison to country-specific origin label. Findings of the study have immediate policy and marketing implications in emerging markets.