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Abstract

Chinese livestock products consumption behavior was analysed for both urban and rural households using a complete regional consumption dataset. Six livestock product expenditure share equations were estimated with an extended AIDS model. The results suggest that Chinese consumers will continue to increase their consumption of livestock products, but consumption patterns have changed in the 1990s. A large percentage of household livestock product expenditure is still on pork. However, the shares for beef, dairy products and poultry consumption will increase substantially. As a consequence the pork expenditure share will be gradually reduced as incomes grow and diet preferences change in both urban and rural households. There are significant differences in livestock product consumption preferences across provinces of China. As a result, studies that omit regional dummy variables in their demand systems can produce different expenditure and price parameters, which should be interpreted with caution.

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