A Double-Hurdle Analysis of Demand for Powdered Milk: Evidence from Household Survey Data in an Urban Chinese Province
Article first published online: 3 FEB 2014
© 2014 Wiley Periodicals, Inc.
Volume 30, Issue 3, pages 331–344, Summer 2014
How to Cite
Wu, B., Chen, Y., Si, W. and Chien, H. (2014), A Double-Hurdle Analysis of Demand for Powdered Milk: Evidence from Household Survey Data in an Urban Chinese Province. Agribusiness, 30: 331–344. doi: 10.1002/agr.21373
- Issue published online: 15 JUL 2014
- Article first published online: 3 FEB 2014
- National Technology Support Project of China. Grant Number: 2009BADA9B00
- Japan International Research Center for Agricultural Sciences
The objective of this study is to explore the determinants of urban at-home consumption demand for powdered milk in Guangdong province from 2007 to 2009. A double-hurdle model is used in this analysis based on survey data. The data include 8188 household distributed in 15 cities and prefectures of Guangdong province. Major findings show that the income growth of urban household, an increase in the level of education of the householder, and the different age groups within the household all have positive effects on urban at-home consumption demand for powdered milk. The prices of powdered milk have negative effects on milk consumption. Families in the Pearl River Delta consume more powdered milk than families in the other regions. The powdered milk consumption has not been significantly affected by the 2008 Chinese melamine tainted milk scandal.