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Proceedings of the 15 th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA) Food Consumption in Rural China: Preliminary Results from Household Survey Data 1 Zhang-Yue Zhou a , The University of Sydney Yan-Rui Wu b The University of Western Australia Wei-Ming Tian c China Agricultural University 1 Revised version of a paper presented at the International Conference on “China in the New Era: Strategies for Sustainable Economic Growth and Business Responses to Regional Demands and Global Opportunities”, held in RMIT University, Melbourne, Australia, 2-3 October 2003. We wish to thank the delegates of the Conference and the referees for their useful comments. This paper presents some preliminary results from our study and further work is being carried out which will be reported in a later stage. We welcome any further comments to help us improve our work. a,b,c Correspondence to: Zhang-Yue Zhou a Yan-Rui Wu b Asian Agribusiness Research Centre Department of Economics The University of Sydney The University of Western Australia Orange, NSW, 2800 Perth, WA., 6009 AUSTRALIA AUSTRALIA Email: [email protected] Email: [email protected] Wei-Ming Tian c College of Economics and Management China Agricultural University Beijing 100094 P.R. CHINA Email: [email protected] Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 1 -

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Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Food Consumption in Rural China: Preliminary Results from

Household Survey Data 1

Zhang-Yue Zhou a,

The University of Sydney

Yan-Rui Wu b

The University of Western Australia

Wei-Ming Tian c

China Agricultural University

1 Revised version of a paper presented at the International Conference on “China in the New Era: Strategies for Sustainable Economic Growth and Business Responses to Regional Demands and Global Opportunities”, held in RMIT University, Melbourne, Australia, 2-3 October 2003. We wish to thank the delegates of the Conference and the referees for their useful comments. This paper presents some preliminary results from our study and further work is being carried out which will be reported in a later stage. We welcome any further comments to help us improve our work. a,b,c Correspondence to: Zhang-Yue Zhoua Yan-Rui Wu b

Asian Agribusiness Research Centre Department of Economics

The University of Sydney The University of Western Australia

Orange, NSW, 2800 Perth, WA., 6009

AUSTRALIA AUSTRALIA

Email: [email protected] Email: [email protected]

Wei-Ming Tian c

College of Economics and Management

China Agricultural University

Beijing 100094

P.R. CHINA

Email: [email protected]

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 1 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Abstract

The increase in consumer income in developing countries induces changes in the composition

of food consumption. Such changes have important implications for policy makers and for

food marketers. For a large developing country such as China, changes in food consumption

have even much greater implications, not only for China itself but also for the rest of the

world, due to the sheer size of its population. As a result of its rapid economic growth and the

resulting increase in consumer income, expansion and diversification of food consumption in

China have been most notable in the past two decades. It is believed that there is

considerable latitude for food consumption growth in China and China will become one of

the fastest-growing markets for food products in the coming years. Using household-level

survey data of representative provinces, this study examines the changes in the proportion of

food consumption expenditure out of total household expenditure and identifies patterns of

change in food consumption in rural China by region and by income group. Major factors

that affect consumption behaviour in rural China are investigated. Implications of the

changes in China’s rural food consumption are discussed.

1. Introduction

China’s population is reaching 1.3 billion. Feeding so many mouths has always been a

challenge for the Chinese government. First, the large population needs to have an adequate

amount of food to eat. Then, after they have had enough to eat, they may want to have better

and more nutritious food to eat. Next, they may want to do less to prepare their food and thus

they may want to consume more processed or semi-processed food. Indeed, there have been

notable changes in food consumption by Chinese consumers in the recent times. For example,

during the two decades between 1981 and 2001, direct consumption of feedgrains at the

national level has dropped by 7% in rural areas and 45% in urban areas. On the other hand,

the consumption of meat, eggs, and aquatic products in rural areas has increased by 85%,

278%, and 222%, respectively. For urban areas, the increases are 29%, 113% and 69%,

respectively. Recent studies have also shown that consumer demand for processed food is on

the increase (Yuan 2001, Wang and Yang 2003). Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 2 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Given the sheer size of the Chinese food market, changes in food consumption in China have

important implications for the agri-food industries not only for China but also for many other

countries that have an interest in supplying to the Chinese market, such as Australia. As such,

the recent developments in China’s food consumption have attracted much attention from

researchers. However, despite the efforts of earlier studies, there are still some issues and

questions that remain untouched or unanswered. This paper adds to our understanding of the

dynamics of China’s rural food consumption and their implications.2

In the next section, we review earlier studies. Section 3 describes the data used in this study.

Section 4 presents the results of preliminary analyses of the data. The findings are discussed

in Section 5 with concluding comments.

2. Review of Literature

A number of factors can cause changes in household consumption. They can be economical

(e.g., income increase), social (e.g., changes in dietary culture due to urbanisation and foreign

influences), market development that makes new foods available, and health concerns that

lead to the preference towards, or deliberate avoidance of, some foods. Among these factors,

however, income is seen to be the most influential one affecting household food

consumption. Studies show that the levels of income do affect the composition of food

consumption (Regmi et al. 2001; Jones et al. 2003). The increase in consumer income in fast

growing developing countries, such as China and Malaysia, tends to induce drastic changes in

the composition of food consumption (Cranfield et al. 1998, Coyle et al. 1998, Regmi 2001,

USDA 2002, Ishida, Law and Aita 2003).

Changes in food consumption in developing countries have important implications for policy

makers in regard to a country’s food industry strategic planning and for food suppliers in

terms of market development. For a large developing country such as China, changes in food

consumption have even much greater implications, not only for China itself but also for the

rest of the world, due to the sheer size of its population. As a result of the rapid economic

2 Chinese rural and urban residents are two distinct consumer groups. It is useful to analyse the consumption dynamics of the two groups separately. We will discuss food consumption in urban China in another paper. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 3 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

growth and the resulting increase in consumer income in the past two decades, expansion and

diversification of food consumption have been notable in China. It is believed that there is

considerable latitude for food consumption growth in China and China will become one of

the fastest-growing markets for food products in the coming years, due to its high prospective

rates of economic growth (Wu 1999, p. 24). Because of the significant and wide implications

of China’s food consumption changes, researchers from both within and outside China have

paid increased attention to examining this issue from various perspectives.

A number of studies have used the popular Almost Ideal Demand System (AIDS) to identify

factors that affect consumption behaviours and to derive parameters such as price and income

elasticities; for example, Halbrendt and Tuan (1994), Fan, Wailes and Cramer (1995), Wu

and Li (1995), Huang and Rozelle (1998). Wan (1998), using a nonparametric framework

developed by Sakong and Hayes (1993), examines taste changes in food demand in rural

China. Focusing on the structural change in the impact of income on food consumption in

China, Guo, Mroz and Popkin (2000) followed a two-step process proposed by Haines,

Guilkey and Popkin (1988). To identify determinants of expenditures on food for at-home

consumption, Gould (2002) uses an econometric model specification that consists of (1) the

system of share equations in which the shares are based on at-home food expenditures and (2)

an auxiliary at-home food expenditure function. When reliable price information is

unavailable, Engel functions may be used (Wu 1999).

Obtaining data for China’s consumption analyses used to be a challenge. This situation seems

to have been improved in recent years although gaining quality data remains to be a major

challenge. In the earlier attempts, researchers often resorted to cross-sectional data (e.g.,

Halbrendt and Tuan 1994, rural household survey data collected by China’s State Statistical

Bureau (SSB), 2560 households of Guangdong province for 1990; Huang and Rozelle 1998,

433 rural household surveys of SSB in Hebei province for 1993) or highly aggregated data

(e.g., Fan et al. 1995, provincial aggregates for 1982-90; Wu and Li 1995, aggregated data

from 33 cities for 1990; Wan 1998, provincial aggregates for 1982-90). In the more recent

studies, Guo et al. (2000) used the data (for 1989, 1991, and 1993) from the China Health and

Nutrition Survey data; the survey is conducted biannually and covers eight provinces with a

little over 3000 households. On the other hand, Gould (2002) managed to secure three

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 4 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

consecutive years of urban household survey data (1995-97) from SSB for Jiangsu, Shandong

and Guangdong provinces.

Earlier studies have contributed importantly to the understanding of the consumption

behaviours in China. Most of them generated important parameters such as income and price

elasticities of demand for various food items. Some provided other useful observations such

as (1) demand is price-inelastic for most commonly consumed food items; (2) there is a

tendency to shift away from rice to wheat consumption; and (3) Chinese consumers will

consume more meats as their income increases.

However, there have been conflicts between findings of earlier studies. Besides the different

analytical methods used, data (i.e., the use of cross-sectional or very aggregated data) are

likely a major source contributing to the different findings. To analyse consumer behaviours,

cross-section and time-series data at the household level are most ideal. Such micro-level

panel data allow us to construct and test more complicated behavioural models than purely

cross-section data (Baltagi 1995, p. 5). Many variables can be more accurately measured at

the micro level and biases resulting from aggregation over individuals are eliminated

(Blundell 1988; Klevmarken 1989). Further, the time span of the panels used by Guo et al.

(2000) and Gould (2002) seems to be short. When panels involve annual data covering only a

short span of time, this means that asymptotic arguments rely crucially on the number of

individuals tending to infinity (Baltagi 1995, p. 7).

It is also noted that data used in the existing studies are somewhat “outdated”. Consumption

behaviours have experienced rapid changes in the past decade in China, driven chiefly by

increased consumer income and external cultural influences. Related to income growth are

the likely changes in income elasticities. For some food items such as animal products

income elasticities may increase when consumers’ incomes increase from a very low level.

However, after income has reached a certain high level, income elasticities may decline with

further increase in consumers’ income. For example, Shono et al. (2000) note that income

elasticities decreased as income and consumption levels of some meats increased over time.

Zhou (2001) reveals that the income elasticity of demand for milk tends to decline when

income rises further from a very high level. Recent empirical evidence by Chu (2003), where

he modelled urban meat consumption patterns, shows all animal products tend to exhibit a

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 5 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

trend of declining income elasticities. As such, researchers have argued that some parameters

derived based on data of a decade ago are less adequate for policy purposes in China and new

estimates based on recent data are called for (He and Tian 2000, Zhou et al. 2003).

This current study makes an additional contribution to the literature concerning China’s rural

food consumption in several ways. First, it uses the most up-to-date household-level survey

data with a longer span of time (1995-2002). Second, for better representation, it selects three

provinces of different levels of economic development (Guangdong represents an

economically developed region and Hubei a medium developed region while Yunnan an

economically less developed region). Third, while the SSB household survey data have been

used fairly extensively for study on China’s food consumption, the household survey data

collected by the Research Centre for Rural Economy of the Ministry of Agriculture remains

little exploited. This study makes use of this data source. Finally, in addition to examining

those common determinants of food expenditure, this study will also explore the likely

impacts of some other factors on food consumption such as family type, family major

business operations, tax and fee burden, and influences of family members not working on

the land; these factors have been so far largely left untouched in the literature.

3. Data

Household-level survey data are regularly collected by the Research Centre for Rural

Economy (RCRE) of the Ministry of Agriculture in all regions in China. The survey first

began in 1986 and was carried out annually except in 1992 and 1994. In each village, some

100 households were surveyed. The survey instruments have evolved over the years. Those

used for 1986-91 were the same (with 312 variables), but they were expanded for the 1993

survey (with 394 variables) and further expanded for the surveys since 1995 (with 439

variables). Data between 1995 and 2002 are used in this study to ensure consistency of

variables over years.

The three provinces, Guangdong, Hubei and Yunnan, are selected for this study. They

represent different levels of economic development; namely, Guangdong representing the

most developed, Hubei the medium developed and Yunnan the least developed. Three Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 6 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

villages were then selected from each province according to the level of economic

development as measured by per capita net income. Brief information about the region where

the chosen villages are located is given in Table 1, together with per capita income in each

village.

[Table 1 here]

In the surveys, there are nine categories of major family business activities: 1) cropping, 2)

forestry, 3) animal husbandry, 4) fishery, 5) industry, 6) construction, 7) transportation, 8)

tertiary services, and 9) others. In this study, activities belonging to categories 1-4 are

considered as farming and the rest as non-farming (i.e., categories 5-9).3 To minimise errors

in the data, we applied various criteria to a number of variables to cross check the data.

Whenever doubt arose or when an observation has an un-legitimate entry (e.g., the number of

family members is zero), the relevant observations are eliminated.

4. Preliminary Analysis

Results of preliminary analyses of the survey data are reported below.

(1) Food expenditure still accounts for a large portion of total living expenditure

Table 2 shows that over 55% of total living expenditure is spent on food. This proportion is

higher for the poorer province, Yunnan. In Table 2, the proportion of Guangdong, more

economically developed province, is not significantly lower than that of Yunnan due to the

following reasons. (1) The income level of Yunnan’s Village 1 is very high, thus pulling

down the provincial average (see Table A1). (2) Although the income level of Guangdong’s

Village 1 is very high, that of the other two villages is low, pushing up the provincial average.

At the village level, about 66% of total living expenditure were spent on food in these two

villages of Guangdong in 2002 (see Table A1). Table A1 also shows that in the poorest

3 In 1996, one further category was added: no family business operations. Currently, the number of families without any business operations is small. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 7 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

village, Village 2 of Yunnan, by 2002, there is still some 75% of total living cost spent on

food.

[Table 2 here]

While the proportion of expenditure on food is slowly declining, the proportion of

expenditure on other items is increasing, chiefly, houses, tertiary services, and culture.

However, there are distinct regional differences. In the poorer province, Yunnan, the

proportion of expenditure on culture is small and also increases at a very slow pace. This

same proportion in other two provinces is almost three times that in Yunnan (Table 2).

(2) Proportion of food expenditure on staple food is declining but that on away from home

consumption is increasing

At the all-three province level, over the past decade, expenditure on staple food (chiefly

foodgrains in China) among total food expenditure is declining (from 39% in 1995 to 35.3%

in 2002) while expenditure on away from home consumption has steadily increased (from 7%

in 1995 to 11.7% in 2002) (Table 3). Expenditure on non-staple food declined slightly from

54% in 1995 to 53% in 2002.

[Table 3 here]

(3) Consumption of foodgrains is declining and that of food of animal origin is slowly

increasing

Table 4 indicates that, as rural income increases over the past decade, there is a clear

declining trend in direct consumption of foodgrains. However, at the all-three-province level,

the increase in the consumption of food of animal origin is not very notable except in the case

of poultry meat where there is a 28% increase in 2002 compared with 1995. At the more

disaggregated levels, a slow increase in the consumption of most animal products can be

established (see, Table 4 at the provincial level and Table A2 at the village level).

[Table 4 here]

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 8 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

However, while there is a general trend in reduced consumption of foodgrains and increased

consumption of animal products, there are clear regional differences both in the speed of

changes in consumption composition and the level of consumption of various animal

products. For example, Table A2 shows that in Village 2 of Yunnan province, the poorest

village among the chosen nine villages, consumption of animal products is very low and in

some cases declining. Consumption of aquatic products and poultry eggs is almost nil. The

consumption of animal products in the two villages in Guangdong province, Villages 2 and 3,

also experienced stagnation or even reduction.

On the other hand, the increase in the consumption of animal products in the two richer

villages, Village 1 of Guangdong and Village 1 in Yunnan, is most notable. The level of

consumption of various animal products in these two villages is also much higher than that in

other villages (Table A2) (Higher level consumption of aquatic products in the villages of

Guangdong is also related to local dietary habits). The above tends to confirm that, in

addition to some regional influences on dietary habits, consumer income is a most import

determinant that affects the composition and the level of food consumption. Analysis

between the income level and food consumption that follows provides further confirmation.

(4) Income level is the major determinant on the composition and the level of food

consumption

Table 5 clearly shows that as income increases, the proportion of living expenditure spent on

food declines. For those living under poverty, a very high portion of the living expenditure,

being almost 80%, is spent on food.4 This same proportion is only a little over 30% for those

very wealthy residents with a per capita income of more than 20000 yuan. On the other hand,

as income increases, the Chinese rural residents spend more on improving their dwelling

conditions and obtaining more tertiary services. Proportionally, the expenditure on culture

tends to increase first and then start to decline (Table 5).

4 In 1995, the poverty line for rural residents in China was 530 yuan (1US$=¥8.351 in 1995). In 1999, this was raised to be 625 yuan (1US$=¥8.278 in 1999). The poverty line set by the United Nations for developing countries is US $31.67 per capita per month, or roughly 1US$ per day. Village-level per capita income data show that in Village 3 of Yunnan province many households live near or under the poverty line as set by the Chinese government. Most worrisome is that the per capita income in this village sometimes declines excessively. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 9 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

[Table 5 here]

Table 5 further shows that, as income increases, the proportion of food expenditure on staple

food, chiefly foodgrains in China, declines rapidly while that on non-staple food and on

away-from-home consumption increases, suggesting that the composition of their food

consumption changes and diversifies. This is clearly reflected in Table 6. An increase in

income from very low level initially leads to increased direct consumption of foodgrains.

This is not surprising as the poor have difficulty in getting enough to eat and they will

consume more foodgrains before they commit their limited resources to consume other food

of more a luxury nature. However, as the income further increases, the consumption of

foodgrains starts to decline while that of other food items continue to increase (Table 6).

[Table 6 here]

While most of other food items, chiefly, animal products, further increases as income goes

up, some other food items do not follow the same pattern. Among the latter, the consumption

of animal oil increases and then declines – most likely due to health concerns. The

consumption of vegetable exhibits a similar patter to animal oil – perhaps due to increased

consumption of fruits. Sugar consumption tends to stabilise as income reaches a certain level

– again likely due to health concerns. On the other hand, the consumption level of other food

items by higher income groups of rural residents (namely, pork, beef and mutton, milk,

poultry meat and eggs, and aquatic products) is significantly higher than that of those lower

income groups of rural people.

(5) Other factors that affect rural consumption

Some other factors may affect food consumption, though indirectly, through their influence

on the level of income. In Table 7, family heads of those with lower per capita income tend to

have lower education level. Table 7 also indicates that a family’s ability to earn income off

farm has a very strong impact on their income level and hence their consumption patterns.

Those families with very high per capita income derive a very small portion of their income

from agriculture. Their living expenditure is over 35 times that of the poorest group. It is also

interesting to note that those very poor families proportionally pay much higher taxes and

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 10 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

charges. These further eat into their very bare means of surviving. Cross tabulation was

carried out to examine whether family type would have any impact on the patterns of food

consumption in rural China. No clear relationships between the two could be established

although those extended families do tend to have slightly higher milk consumption. This is

likely due to the fact that such larger families tend to have more children and elderly and thus

higher milk consumption. Family size and the age of family head are also found to have little

impact on the patterns of food consumption.

[Table 7 here]

The preliminary analyses of the data revealed some useful trends in relation to food

consumption in rural China. These trends confirm that important changes are taking place in

the front of rural food consumption. The preliminary analyses also pinpointed some factors

that may have contributed to the changes in food consumption patterns in rural China. An

understanding of such factors is of great relevance to government food policy formation and

food marketing strategies.

Major factors that may affect the level and composition of food consumption in rural China

may be placed into the following groups:

(1) Prices of food

(2) Per capita net income

(3) Tax and fee burdens 5

(4) Regional differences

(5) Other non-price and non-income factors, chiefly, family characteristics, including:

1) family size

2) family type 6

3) age of household head

4) education level of household head 5 Tax and fee burden affects net income. We examine this factor separately because we are interested in finding out whether the higher proportion of tax and fees paid by the lower income group of people negatively affect their food consumption. 6 1) and 2) are related. Family type will affect the size of the family. They may affect food consumption patterns, e.g., a larger family is more likely to have children and elderly and hence has to cater for the needs of the children and elderly. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 11 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

5) proportion of non-rural labour out of total family labour

6) proportion of income from non-farming sources 7

The RCRE household survey data only collect the quantity of various food items consumed

by households without the corresponding consumption expenditure. This makes it impossible

to infer any price information. Various other alternatives have been attempted but they can

help little to derive any meaningful price information. The absence of price data is rather

unfortunate and it limits our ability to analyse various effects related to price changes such as

income effect and substitution effect. Nonetheless, our database contains much other useful

household information that will still entail us to discover the effects associated with many

other factors as enumerated in the above. Our econometric modelling will focus on such other

factors and will be carried out in our next stage’s work.

5. Some Concluding Comments

In spite of the absence of empirical results based on econometric modelling, some important

observations can still be derived based on some preliminary analyses.

While food expenditure still accounts for a large proportion of total living expenditure, this

proportion is declining. The proportion of expenditure on housing, tertiary services and

education is on the increase. This trend will continue into the near future for China’s rural

areas. As such, although the proportion of income spent on food will decline, total

expenditure spent on food will continue to rise due to increased consumer income. On the

other hand, the market potential for non-food consumer goods will be enormous.

Direct consumption of foodgrains has started to decline in rural China. At the all-three

province level, the proportion of food expenditure on staple food is declining while that on

away from home consumption has steadily increased. Expenditure on non-staple food

7 5) and 6) are also related and both are also related to income. Generally if they are higher, we can expect the family has higher per capita income. However, they can be used as proxies to capture the influence of other two factors on consumption, i.e., urbanisation and influence of outside culture. With more labour engaged in non-farming/non rural work, they get more exposed to influences from elsewhere which in turn will affect their family consumption patterns. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 12 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

declined slightly. This suggests that there is much room for food catering industry

development.

While direct consumption of foodgrains is declining, there is an increase in the indirect

consumption of grains; that is, through increased consumption of animal products whose

production consumes grains. However, according to the survey data, at the all-three province

level, the increase in animal product consumption by the Chinese rural residents is rather

slow over the past decade. It implies that unless there are drastic changes (e.g., rapid increase

in consumer income), the increase in the consumption of animal products in China’s rural

areas is likely to be small. 8

However, there are significant regional differences in the composition of food consumption.

Per capita consumption of aquatic products in Guangdong is much higher than that in

Yunnan. Apart from income differences, availability of some foods is a key determinant that

leads to different dietary habits in different regions. Unlike the markets in developed

economies, many agricultural markets in China are not well integrated and some food items

are simply not available in the vast rural areas in China. It may be anticipated that, as the

Chinese agricultural markets get further integrated, the total demand for some food items will

increase.

Income plays a major role in determining the composition and the level of food consumption.

As income increases, the proportion of food expenditure on staple food, chiefly foodgrains,

declines rapidly while that on non-staple food and on away-from-home consumption

increases. This suggests that the composition of their food consumption changes and

diversifies. The consumption level of pork, beef and mutton, milk, poultry meat and eggs,

and aquatic products by higher income groups of rural residents is significantly higher than

that of those with lower income. Future increase in rural income will have a great impact on

food consumption in China.

8 It is noted that faster increase in the consumption of some animal products took place in the early 1990s, largely attributable to a faster increase in income. However, there has been a slowing down in consumer income increase in rural areas in the past several years. During 1997-2001, per capita income growth in rural areas was 3.2%, down from 25.2% during the previous five-year period (1992-96). Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 13 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

A family’s ability to earn income off farm has a very strong impact on their income level and

hence their consumption patterns. Those families with very high per capita income derive a

very small portion of their income from agriculture. Apart from the fact that more family

labour working off farm earns the family higher income, it is also likely that those working

off farm have great exposure to external influences and subsequently influence home food

consumption. As such, increased rural-urban exchanges and urbanisation will impact on

China’s rural food consumption.

Very poor families proportionally pay much higher taxes and charges. Government’s efforts

in reducing the poor’s tax burden will help them to improve their food intake. In addition,

heads of those poor families tend to have lower education level. This is another area where

government action is needed.

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 14 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

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stage LES-AIDS model’, American Journal of Agricultural Economics, Vol. 77, pp. 54-62.

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approach’, American Journal of Agricultural Economics, Vol. 75, pp. 269-77.

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Wan, G.H. (1998), ‘Nonparametric measurement of preference changes: The case of food

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Applied Economics, Vol. 27, pp. 509-15.

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demand and supply: Research methodological issues’, in Zhou, Z.Y. and Tian, W.M. (eds),

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Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 17 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Table 1: Brief Description of Sample Regions

Province and

Rural Per

Capita Income

(¥)

City from

which a Sample

Village is

Drawn

Village-

level Per

Capita

Income (¥)

Brief Description of the Region

Hanyang

(Village 1)

3253 A relatively developed region within the

province with good transportation

Hubei

(2352)

Hanchuan

(Village 2)

3049 Similar to Hanyang

Changyang

(Village 3)

1838 A hilly area with a less developed economy

and market

Dongguan

(Village 1)

11699 Highly industrialised area close to

Guangzhou and Hong Kong

Guangdong

(3770)

Dianbai

(Village 2)

2651 Relatively less developed area within

Guangdong province

Wuchuan

(Village 3)

2333 Similar to Dianbai but in a coastal area

Yuxi

(Village 1)

6638 A wealthier area with much injection from

a highly developed tobacco industry

Yunnan

(1534)

Lanchang

(Village 2)

509 Very remote and mountainous area, one of

the poorest regions in the province and in

China

Dali

(Village 3)

2070 Very remote and mountainous area, one of

the poorer regions but with tourist

resources Note: Per capita net income at the village level for 2001 is reported here to be comparable with the

provincial average in 2001, the latest available.

Sources: SSB (2002); RCRE survey data.

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 18 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Table 2: Changes in the Composition of Living Expenditure in Rural China (%)

Year

Per Capita

Income (¥)

Food Cloth House Fuel Daily

Consumables

Services Culture Other

All Three Provinces

1995 3121 62.6 7.3 6.2 3.7 6.4 4.9 7.2 1.7

1996 3596 63.3 6.4 6.9 3.7 5.7 4.7 8.2 1.1

1997 3692 60.8 7.2 6.6 3.5 6.0 5.8 8.4 1.8

1998 3575 62.3 6.8 5.1 3.8 5.4 5.8 8.8 1.9

1999 3634 61.8 6.3 5.7 4.1 5.3 6.3 8.8 1.7

2000 4106 57.2 6.7 7.9 4.3 5.7 6.9 9.7 1.6

2001 3905 58.1 6.3 7.1 4.2 5.3 7.8 9.5 1.6

2002 5940 55.5 5.7 8.7 4.1 6.9 8.6 8.9 1.5

Hubei

1995 2556 57.9 7.9 5.9 4.8 7.1 5.3 8.9 2.3

1996 2238 59.2 6.6 5.5 5.2 5.1 6.8 11.4 0.1

1997 2630 58.5 7.6 5.0 4.4 5.5 6.8 10.7 1.7

1998 2408 59.9 7.6 3.0 5.5 4.5 7.5 9.9 2.1

1999 2489 55.3 7.1 5.4 5.8 6.3 6.9 10.9 2.3

2000 2685 49.6 8.2 8.3 6.6 5.6 8.7 12.4 0.6

2001 2707 50.5 7.3 5.7 6.0 5.7 12.1 11.2 1.5

2002 2911 49.1 7.3 4.1 5.5 7.6 11.6 12.7 2.0

Guangdong

1995 4546 61.0 5.7 8.2 2.9 6.4 4.9 9.6 1.3

1996 5019 60.9 5.4 7.4 2.9 7.6 3.8 10.3 1.6

1997 5262 58.4 5.3 7.9 3.0 7.4 4.8 11.0 2.2

1998 4649 63.0 4.9 5.8 3.1 4.4 4.6 12.4 1.9

1999 4881 63.5 4.8 5.9 3.3 4.2 4.8 11.7 1.8

2000 5533 58.2 5.0 9.6 3.4 5.1 4.7 12.7 1.3

2001 5514 60.5 4.9 6.5 3.5 4.2 5.8 13.2 1.4

2002 10552 56.7 4.4 6.5 3.5 7.3 9.1 11.3 1.2

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 19 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Yunnan

1995 2014 67.2 8.7 4.3 3.8 6.0 4.7 3.6 1.8

1996 2934 68.2 7.2 7.3 3.6 4.0 4.2 4.3 1.2

1997 2825 64.2 8.7 6.2 3.4 5.1 6.2 4.6 1.6

1998 3189 63.1 8.3 5.8 3.5 6.8 6.1 4.6 1.8

1999 3046 63.9 7.4 5.6 3.9 5.9 7.5 4.7 1.1

2000 3515 60.6 7.6 5.9 3.9 6.3 7.9 5.1 2.5

2001 3018 60.1 7.0 8.5 3.9 6.3 7.4 4.8 2.0

2002 3199 58.0 6.0 13.3 4.0 6.2 6.5 4.4 1.6

Note: The per capita income of Guangdong suddenly almost doubled in 2002. This is caused by an abrupt

increase in per capita income (more than doubled) in Village 1 of Guangdong in that year.

Source: calculated from RCRE survey data.

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 20 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Table 3. Composition of Food Expenditure

Year Staple Food Non-Staple Food Away from Home

Consumption

1995 39.0 54.0 7.0

1996 39.0 52.7 8.1

1997 36.5 55.0 8.5

1998 36.4 54.2 9.0

1999 37.2 52.7 10.1

2000 35.4 53.3 11.3

2001 36.8 52.0 11.2

2002 35.3 53.0 11.7

Source: calculated from RCRE survey data.

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 21 -

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Tab

le 4

: Tre

nds i

n Pe

r C

apita

Con

sum

ptio

n of

Maj

or F

ood

Item

s in

Rur

al C

hina

(kg)

Yea

r

Per C

apita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les V

eget

able

Oil

Ani

mal

Oil

Pork

Bee

f and

M

ilk

Mut

ton

Poul

try

Mea

t

Eggs

Aqu

atic

Prod

ucts

Frui

tsSu

gar

All

Thre

e Pr

ovin

ces

1995

ubei

3121

201.

312

0.8

5.7

2.3

20.1

1.0

0.09

4.0

2.8

12.4

13.4

2.5

1996

3596

201.

312

1.8

5.8

2.3

20.4

1.1

0.09

4.0

2.9

12.0

11.8

2.4

1997

3692

194.

411

6.5

6.1

2.3

20.0

1.0

0.13

4.0

2.8

12.9

13.4

2.4

1998

3575

193.

111

7.8

6.3

2.8

20.3

1.3

0.09

4.5

2.9

12.4

13.1

2.6

1999

3634

189.

810

6.8

6.0

2.5

19.5

1.1

0.07

4.6

2.8

11.9

13.8

2.5

2000

4106

188.

811

2.3

6.8

2.5

21.2

1.3

0.14

5.1

3.1

12.4

15.6

2.4

2001

3905

184.

811

3.0

6.6

2.6

20.7

1.1

0.15

5.0

3.1

12.4

13.5

2.1

2002

5940

180.

111

7.3

7.5

2.6

20.6

1.1

0.43

5.1

3.0

12.3

13.2

2.5

H

1995

2556

210.

215

8.1

11.9

2.3

23.9

0.8

0.02

1.5

4.2

11.3

14.1

1.8

1996

2238

210.

516

8.5

11.5

2.3

25.1

0.7

0.02

1.5

3.9

10.6

8.1

1.7

1997

2630

208.

616

9.2

12.6

2.4

24.6

1.0

0.08

2.0

3.6

11.4

18.1

1.9

1998

2408

207.

415

4.8

12.4

2.8

24.6

0.7

0.07

1.8

3.4

10.8

13.6

1.9

1999

2489

210.

314

9.8

11.9

2.5

22.1

0.9

0.07

1.7

3.4

9.0

14.7

1.8

2000

2685

200.

313

9.4

13.8

3.0

24.4

1.1

0.05

1.9

4.1

9.3

21.7

2.0

2001

2707

188.

112

8.0

13.0

3.1

24.0

1.1

0.09

2.1

3.8

8.7

12.0

1.9

Zhou

, Z-Y

., W

u, Y

-R.,

& T

ian,

W-M

., ‘F

ood

Con

sum

ptio

n in

Rur

al C

hina

: Pre

limin

ary

Res

ults

from

H

ouse

hold

Sur

vey

Dat

a’.

- 2

2 -

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Yea

r

Per C

apita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les V

eget

able

Oil

Ani

mal

Oil

Pork

Bee

f and

M

ilk

Mut

ton

Poul

try

Mea

t

Eggs

Aqu

atic

Prod

ucts

Frui

tsSu

gar

2002

2911

176.

012

5.4

15.5

2.4

22.2

1.1

0.07

2.3

4.0

8.4

9.3

1.6

Gua

ngdo

ng

1995

4546

177.

169

.45.

31.

426

.61.

40.

157.

13.

124

.015

.23.

2

1996

5019

188.

870

.76.

01.

325

.81.

50.

147.

03.

523

.712

.73.

1

1997

5262

181.

771

.06.

11.

426

.31.

20.

187.

13.

726

.513

.23.

2

1998

4649

188.

873

.56.

01.

425

.11.

20.

097.

63.

724

.513

.13.

0

1999

4881

192.

274

.35.

91.

324

.31.

20.

078.

03.

924

.213

.72.

7

2000

5533

196.

075

.66.

11.

425

.40.

90.

188.

73.

925

.014

.62.

6

2001

5514

197.

279

.76.

41.

725

.81.

00.

159.

14.

325

.915

.12.

2

2002

1055

220

0.2

87.8

6.9

2.0

26.2

0.9

0.35

8.8

4.0

25.6

15.6

2.4

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le

Oil

Ani

mal

Oil

Pork

Bee

f and

M

ilk

Mut

ton

Poul

try

Mea

t

Eg

gsA

quat

ic

Prod

ucts

Fr

uits

Suga

r

Yun

nan

1995

2014

220.

614

9.8

2.2

3.3

10.9

0.7

0.08

2.5

1.6

1.0

11.2

2.1

1996

2934

208.

714

6.8

2.4

3.3

12.2

0.8

0.09

2.4

1.6

1.0

13.1

2.1

1997

2825

198.

112

9.2

2.5

3.1

11.4

0.9

0.12

2.3

1.4

1.0

11.0

1.8

1998

3189

189.

014

0.1

3.2

4.3

13.1

1.7

0.10

3.0

1.7

1.3

12.8

2.5

1999

3046

175.

711

4.8

2.8

3.8

13.4

1.2

0.07

2.9

1.4

1.2

13.4

2.7

Zhou

, Z-Y

., W

u, Y

-R.,

& T

ian,

W-M

., ‘F

ood

Con

sum

ptio

n in

Rur

al C

hina

: Pre

limin

ary

Res

ults

from

H

ouse

hold

Sur

vey

Dat

a’.

- 2

3 -

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le

Oil

Ani

mal

Oil

Pork

Bee

f and

M

ilk

Mut

ton

Poul

try

Mea

t

Eg

gsA

quat

ic

Prod

ucts

Fr

uits

Suga

r

2000

3515

174.

813

3.0

3.3

3.3

15.1

1.8

0.16

3.3

1.7

1.6

13.0

2.5

2001

3018

170.

713

6.9

3.2

3.2

13.9

1.2

0.20

2.6

1.5

1.3

12.8

2.1

2002

3199

163.

014

1.1

3.6

3.2

14.4

1.4

0.70

3.1

1.6

1.7

13.2

3.1

Sour

ce: c

alcu

late

d fr

om R

CR

E su

rvey

dat

a.

Zhou

, Z-Y

., W

u, Y

-R.,

& T

ian,

W-M

., ‘F

ood

Con

sum

ptio

n in

Rur

al C

hina

: Pre

limin

ary

Res

ults

from

H

ouse

hold

Sur

vey

Dat

a’.

- 2

4 -

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Tab

le 5

: Con

sum

er In

com

e an

d Pr

opor

tion

of L

ivin

g E

xpen

ditu

re o

n Fo

od a

nd O

ther

Item

s in

Rur

al C

hina

Expe

nditu

re o

n Fo

od C

onsu

mpt

ion

(%)

Ex

pend

iture

on

Oth

er It

ems (

%)

Am

ong

whi

ch (%

)

Inco

me

Gro

up

(¥)

Tota

l Foo

d

Expe

nditu

re

Stap

le

Food

Non

-Sta

ple

Food

Aw

ay fr

om H

ome

Con

sum

ptio

n

Clo

th

H

ouse

Fuel

Dai

ly

Con

sum

able

s

Expe

nditu

re

on T

ertia

ry

Serv

ices

Cul

ture

Oth

er

≤500

79

.1

69.4

29.0

1.6

6.

54.

33.

92.

52.

01.

60.

1

501-

1000

71.4

52.5

43.6

3.1

7.

04.

74.

63.

74.

14.

40.

2

1001

-200

065

.038

.553

.37.

5

6.0

4.7

4.1

4.4

5.1

9.8

0.9

2001

-300

059

.133

.854

.411

.4

6.7

5.5

4.2

5.3

6.3

11.3

1.5

3001

-400

055

.729

.756

.713

.1

7.0

6.2

3.8

6.0

7.8

11.0

2.5

4001

-600

051

.027

.459

.113

.4

7.3

9.1

3.6

7.7

9.0

9.4

2.9

6001

-100

0050

.023

.062

.514

.5

6.7

9.7

3.4

9.1

9.2

8.3

3.6

1000

1-20

000

44.5

22.1

64.8

13.1

5.

915

.72.

812

.48.

96.

73.

2

>200

0033

.419

.364

.316

.5

5.3

23.9

2.4

13.3

13.7

6.8

1.4

Sour

ce: c

alcu

late

d fr

om R

CR

E su

rvey

dat

a.

Zhou

, Z-Y

., W

u, Y

-R.,

& T

ian,

W-M

., ‘F

ood

Con

sum

ptio

n in

Rur

al C

hina

: Pre

limin

ary

Res

ults

from

H

ouse

hold

Sur

vey

Dat

a’.

- 2

5 -

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Tab

le 6

: Con

sum

er In

com

e an

d th

e L

evel

of C

onsu

mpt

ion

of D

iffer

ent F

ood

Item

s in

Rur

al C

hina

Inco

me

Gro

up

(¥)

Food

grai

ns

(unm

illed

)

(kg)

Food

grai

ns

(bou

ght)

(kg)

Veg

etab

les

(kg)

Veg

etab

le

Oil

(kg)

Ani

mal

Oil

(kg)

Pork

(kg)

Bee

f and

Mut

ton

(kg)

Milk

(kg)

Poul

try

Mea

t

(kg)

Eggs

(kg)

Aqu

atic

Prod

ucts

(kg)

Frui

ts

(kg)

Suga

r

(kg)

≤500

19

9.4

29.3

107.

60.

40.

43.

40.

40.

011.

40.

20.

22.

90.

7

501-

1000

195.

838

.610

8.8

3.0

1.9

13.5

0.6

0.00

2.0

0.9

2.6

7.0

1.3

1001

-200

020

6.4

62.6

106.

85.

72.

620

.30.

80.

043.

42.

49.

79.

12.

3

2001

-300

020

3.3

78.3

108.

97.

72.

619

.81.

10.

054.

43.

113

.99.

92.

6

3001

-400

019

1.3

82.5

127.

88.

23.

422

.71.

30.

104.

63.

715

.415

.22.

7

4001

-600

017

9.0

81.4

136.

28.

33.

326

.71.

80.

146.

44.

416

.820

.83.

2

6001

-100

0016

1.5

97.4

129.

88.

02.

827

.71.

80.

427.

85.

018

.325

.63.

3

1000

1-20

000

143.

711

7.2

122.

38.

51.

927

.42.

00.

529.

14.

524

.830

.73.

1

>200

0014

0.8

127.

711

5.7

9.4

1.4

31.2

3.0

2.31

12.5

5.4

30.7

40.5

3.3

Sour

ce: c

alcu

late

d fr

om R

CR

E su

rvey

dat

a.

Zhou

, Z-Y

., W

u, Y

-R.,

& T

ian,

W-M

., ‘F

ood

Con

sum

ptio

n in

Rur

al C

hina

: Pre

limin

ary

Res

ults

from

H

ouse

hold

Sur

vey

Dat

a’.

- 2

6 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Table 7: Relationships between Income and Other Family Attriutees

Income

Group

(¥)

No. of

Obs

% of

total

Per Capita

Income

(¥)

Education

Level of

Family

Head

Non-Agric.

Income out

of total

Income

(%)

Per Capita

Living

Expenditure

(¥)

Tax/Fee

Payments

Per Capita

(¥)

Tax/Fee

Payments out

of Income Per

Capita

(%)

≤500 432 7 354 1.3 24.1 481 28 8.5

501-1000 606 10 747 1.7 32.3 855 43 5.8

1001-2000 1532 26 1513 2.3 56.0 1412 65 4.4

2001-3000 1134 19 2448 2.5 70.4 1889 108 4.3

3001-4000 658 11 3462 2.5 80.3 2510 145 4.3

4001-6000 624 11 4898 2.5 87.7 4121 171 3.5

6001-10000 457 8 7681 2.6 91.1 4603 202 2.6

10001-20000 298 5 13412 2.7 94.6 7647 288 2.1

>20000 110 2 41532 2.6 97.3 17295 2584 4.8

Source: calculated from RCRE survey data.

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 27 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Appendix

Table A1: Changes in the Composition of Living Expenditure at the Village Level

in Rural China (%)

Year

Per Capita

Income

Food Cloth House Fuel Daily

Consumables

Services Culture Other

Hubei, Village 1

1995 3111 54.6 8.6 5.0 4.2 6.2 5.6 10.3 5.5

1996 2896 56.0 6.6 3.4 5.8 6.1 7.7 14.0 0.4

1997 3531 59.4 6.7 3.3 6.0 2.5 7.8 12.4 1.8

1998 3154 58.1 9.1 1.6 6.3 5.0 9.4 9.0 1.6

1999 3552 50.0 8.5 4.3 5.5 5.1 8.9 13.9 3.9

2000 3509 48.4 8.2 1.8 6.1 3.2 13.5 17.8 0.8

2001 3253 51.2 8.9 1.0 6.9 3.1 15.6 10.7 2.8

2002 4089 47.6 9.5 0.9 6.6 5.5 13.7 11.1 5.1

Hubei, Village 2

1995 3081 60.0 6.8 6.9 4.4 9.2 4.0 8.7 0.1

1996 2425 58.3 5.3 4.9 5.5 5.6 6.8 13.7 0.1

1997 2685 56.5 8.5 3.4 2.4 8.1 6.9 12.2 2.0

1998 2581 57.2 7.9 3.9 4.1 5.6 6.3 12.9 2.1

1999 2355 55.3 7.2 7.1 4.7 8.0 5.0 10.7 2.0

2000 2804 45.0 10.5 8.4 6.1 10.5 7.2 12.1 0.3

2001 3049 45.6 7.2 8.4 4.5 7.9 10.6 14.1 1.7

2002 2890 45.6 7.2 6.3 4.8 9.6 9.2 16.2 1.0

Hubei, Village 3

1995 1532 58.7 8.4 5.8 5.6 5.7 6.3 8.0 1.6

1996 1508 62.8 7.8 8.0 4.4 3.8 6.2 7.0 0.0

1997 1723 59.5 7.4 8.2 4.8 5.7 5.6 7.6 1.1

1998 1567 64.2 5.9 3.2 6.3 3.0 7.1 7.7 2.7

1999 1570 60.4 5.5 5.0 7.1 6.0 6.6 8.2 1.2

2000 1733 55.6 5.6 14.8 7.5 2.7 5.5 7.4 0.8

2001 1838 55.0 5.9 7.5 6.8 5.8 10.3 8.7 0.0

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 28 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Year

Per Capita

Income

Food Cloth House Fuel Daily

Consumables

Services Culture Other

2002 1799 54.5 5.3 4.8 5.2 7.4 12.3 10.5 0.0

Guangdong, Village 1

1995 7535 52.7 4.7 16.4 3.0 10.8 4.7 6.0 1.7

1996 9063 51.1 4.8 12.5 2.7 16.2 4.3 6.9 1.4

1997 10052 50.2 5.2 8.3 3.0 16.2 7.4 7.8 2.0

1998 9198 55.0 4.9 12.7 2.8 8.1 6.1 8.6 1.8

1999 9503 57.4 5.5 7.2 3.5 8.9 8.2 7.7 1.8

2000 11443 50.1 5.2 12.5 3.2 11.3 7.8 8.6 1.2

2001 11699 51.4 5.6 10.0 3.3 8.5 10.5 9.4 1.3

2002 26225 38.6 3.8 12.9 2.9 14.5 19.6 6.3 1.4

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 29 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

(Table A1 continued)

Year

Per Capita

Income

Food Cloth House Fuel Daily

Consumables

Services Culture Other

Guangdong, Village 2

1995 2873 69.1 5.5 1.6 3.2 5.2 3.9 11.0 0.5

1996 3238 66.9 5.4 5.9 3.0 4.7 3.2 10.9 0.2

1997 2875 63.4 4.8 8.7 2.9 3.1 3.4 13.6 0.1

1998 2493 67.0 4.7 2.3 3.2 3.6 3.5 14.8 0.9

1999 2354 68.3 4.6 2.9 3.2 2.5 2.3 15.6 0.8

2000 2425 66.7 4.7 4.3 3.2 2.7 2.2 15.9 0.4

2001 2651 66.8 4.4 4.0 3.2 2.3 2.6 16.2 0.5

2002 2756 66.7 4.8 2.0 3.4 6.0 2.9 14.2 0.0

Guangdong, Village 3

1995 3204 61.5 6.7 6.6 2.5 3.1 6.2 11.8 1.7

1996 2963 64.1 5.9 4.1 3.2 2.5 4.0 13.1 3.2

1997 2590 62.4 5.7 6.9 3.0 2.4 3.4 12.1 4.1

1998 2425 66.6 5.0 2.6 3.3 1.6 4.3 13.7 2.9

1999 2725 65.0 4.4 7.6 3.3 1.2 3.7 11.9 2.9

2000 2694 58.0 5.1 11.7 3.9 1.3 4.1 13.6 2.4

2001 2333 63.4 4.6 5.7 3.9 1.8 4.3 14.1 2.2

2002 2253 65.4 4.7 4.5 4.1 1.3 4.4 13.5 2.2

Yunnan, Village 1

1995 3988 53.2 9.8 5.0 3.7 7.1 8.9 7.2 5.2

1996 5496 51.0 8.4 11.9 3.7 5.8 8.1 7.4 3.6

1997 5989 48.3 9.5 8.6 3.9 6.9 11.0 6.8 5.0

1998 6702 50.0 10.2 7.3 3.9 8.4 11.4 4.8 4.0

1999 6640 49.7 9.4 6.5 4.5 6.3 13.5 6.7 3.3

2000 7981 45.0 9.3 5.9 4.5 5.6 16.0 6.8 6.9

2001 6638 42.6 7.9 11.5 3.9 6.6 15.1 7.0 5.5

2002 7039 36.7 7.1 23.1 4.0 4.7 13.3 6.9 4.2

Yunnan, Village 2

1995 690 74.7 9.5 3.5 4.2 5.2 2.2 0.4 0.3

1996 577 80.4 7.1 4.4 3.9 2.3 0.9 1.1 0.0

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 30 -

Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)

Year

Per Capita

Income

Food Cloth House Fuel Daily

Consumables

Services Culture Other

1997 674 77.2 9.4 3.8 3.1 3.1 2.4 1.1 0.0

1998 790 75.9 8.8 3.4 2.8 5.8 1.6 1.7 0.0

1999 510 78.6 7.1 5.0 3.1 3.3 1.5 1.4 0.0

2000 532 75.6 8.5 5.7 3.3 3.3 1.4 1.9 0.3

2001 509 73.0 7.8 9.0 3.7 2.4 2.0 2.0 0.0

2002 578 76.3 5.8 8.4 3.8 2.4 2.2 0.9 0.0

Yunnan, Village 3

1995 1483 73.0 6.7 4.4 3.3 5.7 3.3 3.4 0.1

1996 2780 72.8 6.2 5.6 3.3 3.8 3.9 4.4 0.0

1997 1985 66.2 7.2 6.4 3.3 5.5 5.5 6.0 0.0

1998 2061 63.6 5.9 6.6 3.8 6.3 5.3 7.2 1.4

1999 2142 62.7 5.8 5.4 4.0 8.1 7.7 6.3 0.0

2000 1920 61.6 5.1 6.2 4.0 10.1 6.2 6.7 0.1

2001 2070 63.8 5.4 5.1 3.9 10.0 5.6 5.6 0.6

2002 2130 59.9 5.2 8.6 4.2 11.7 4.3 5.5 0.6

Source: calculated from RCRE survey data.

Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 31 -

Tab

le A

2: T

rend

s in

Per

Cap

ita C

onsu

mpt

ion

of M

ajor

Foo

d It

ems i

n R

ural

Chi

na a

t the

Vill

age

Lev

el (k

g)

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le A

nim

al

Oil

Oil

Pork

Bee

f and

M

ilk

Mut

ton

Poul

try

Mea

t

Eg

gsA

quat

ic

Prod

ucts

Frui

tsSu

gar

H

ubei

, Vill

age

1

1995

31

11

273.

418

1.9

14.8

2.7

19.7

2.4

0.06

3.8

6.4

19.4

9.2

2.3

1996

28

9627

2.7

163.

712

.92.

216

.81.

60.

043.

87.

219

.19.

11.

8

1997

35

3128

3.4

179.

515

.03.

021

.42.

60.

245.

18.

119

.712

.42.

2

1998

31

5427

2.5

188.

215

.32.

318

.51.

70.

144.

37.

818

.210

.82.

6

1999

35

5227

7.1

194.

215

.92.

517

.71.

90.

123.

47.

117

.511

.02.

7

2000

35

0923

9.0

194.

516

.82.

816

.62.

10.

103.

16.

815

.412

.82.

8

2001

32

5322

4.6

215.

613

.92.

814

.42.

30.

213.

77.

118

.111

.52.

6

2002

40

8922

1.0

189.

517

.02.

816

.51.

90.

173.

96.

917

.510

.41.

8

Hub

ei, V

illag

e2

1995

30

8120

5.9

177.

212

.70.

29.

90.

00.

000.

74.

414

.74.

71.

9

1996

24

2517

7.6

224.

513

.20.

19.

20.

00.

020.

93.

413

.93.

41.

7

1997

26

8516

5.7

231.

714

.80.

411

.10.

20.

001.

12.

114

.64.

12.

4

1998

25

8118

4.4

154.

614

.00.

89.

70.

20.

041.

12.

614

.14.

62.

0

1999

23

5518

7.4

130.

513

.60.

98.

00.

70.

051.

12.

19.

06.

41.

5

2000

28

0418

4.4

95.3

14.6

1.8

12.1

0.8

0.04

2.2

3.5

10.9

7.3

1.9

2001

30

4920

1.3

91.9

16.3

2.9

11.6

0.4

0.00

2.3

3.9

8.1

6.6

2.3

2002

28

9017

3.0

91.1

19.2

2.7

11.1

0.5

0.00

2.0

3.9

7.2

5.7

2.2

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le A

nim

al

Oil

Oil

Pork

Bee

fand

Po

ultry

Mea

t M

utto

n

Milk

Eggs

Aqu

atic

Prod

ucts

Hub

ei, V

illag

e3

1995

15

32

157.

711

7.6

8.4

3.9

41.6

0.3

0.00

0.4

2.0

0.7

27.9

1.2

1996

15

0818

8.8

120.

48.

84.

446

.90.

50.

000.

11.

70.

411

.61.

5

1997

17

2318

1.0

96.9

8.1

4.0

41.1

0.2

0.00

0.1

1.0

0.5

37.5

1.3

1998

15

6717

2.1

125.

28.

15.

145

.00.

10.

040.

10.

40.

924

.91.

3

1999

15

7016

6.0

124.

06.

24.

039

.40.

10.

040.

51.

00.

626

.11.

2

2000

17

3317

8.7

131.

610

.14.

445

.30.

60.

000.

42.

01.

646

.11.

2

2001

18

3814

0.0

82.6

8.7

3.6

46.0

0.5

0.05

0.4

0.5

0.2

17.9

0.8

2002

17

9913

6.2

101.

79.

91.

640

.01.

10.

051.

21.

30.

912

.20.

8

33

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

(Tab

le A

2 co

ntin

ued)

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le A

nim

al

Oil

Oil

Pork

Bee

f and

M

ilk

Mut

ton

Poul

try

Mea

t

Eg

gsA

quat

ic

Prod

ucts

Frui

tsSu

gar

Gua

ngdo

ng, V

illag

e1

1995

75

35

134.

572

.86.

00.

129

.10.

50.

208.

82.

728

.733

.53.

4

1996

90

6312

0.6

73.8

7.3

0.5

28.2

0.4

0.34

8.1

3.4

29.9

27.6

3.6

1997

10

052

123.

477

.57.

10.

331

.20.

60.

437.

83.

931

.626

.23.

8

1998

91

9813

3.9

91.2

7.0

0.5

29.7

0.8

0.28

8.7

4.7

30.7

26.8

3.6

1999

95

0313

8.4

101.

27.

30.

429

.00.

90.

179.

54.

830

.627

.73.

5

2000

11

443

140.

010

1.0

7.6

0.9

30.7

0.7

0.50

8.9

5.2

29.7

29.3

3.6

2001

11

699

140.

310

9.2

7.9

1.4

30.1

1.1

0.40

10.5

6.4

30.3

29.5

2.3

2002

26

225

139.

011

7.6

8.4

1.3

32.7

0.9

1.02

11.5

5.9

29.4

32.0

2.5

Gua

ngdo

ng, V

illag

e2

1995

28

7319

6.4

99.6

6.7

2.5

30.7

3.6

0.25

8.9

4.9

16.2

8.3

4.2

1996

32

3823

8.7

101.

27.

61.

628

.73.

60.

119.

15.

214

.77.

94.

0

1997

28

7520

9.8

101.

18.

62.

129

.72.

80.

1110

.25.

917

.210

.24.

3

1998

24

9322

1.0

93.9

8.5

1.9

29.7

2.5

0.00

10.9

5.2

17.3

10.7

4.1

1999

23

5421

6.5

86.2

7.7

1.8

27.3

2.0

0.05

10.9

5.6

14.8

10.1

3.4

2000

24

2522

2.7

86.9

7.9

1.5

27.5

1.5

0.05

13.5

5.1

15.5

11.1

3.1

2001

26

5122

8.5

89.4

8.3

2.0

27.5

1.5

0.05

13.1

5.4

15.8

12.8

3.0

2002

27

5621

9.0

92.2

8.9

2.2

26.9

1.4

0.00

11.3

4.8

14.4

10.4

3.0

34

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le A

nim

al

Oil

Oil

Pork

Bee

fand

Po

ultry

Mea

t M

utto

n

Milk

Eggs

Aqu

atic

Prod

ucts

Gua

ngdo

ng, V

illag

e3

1995

32

04

200.

537

.53.

31.

820

.20.

20.

003.

72.

026

.93.

72.

1

1996

29

6320

3.7

37.4

3.1

1.7

20.5

0.4

0.00

3.8

1.8

26.9

3.2

1.8

1997

25

9021

5.1

40.4

3.0

2.0

19.0

0.5

0.00

3.9

1.8

29.0

3.2

1.8

1998

24

2520

9.6

36.9

2.6

1.8

16.3

0.4

0.00

3.4

1.4

25.7

2.5

1.4

1999

27

2522

2.2

36.6

2.8

1.8

16.7

0.6

0.00

3.7

1.5

26.9

3.3

1.4

2000

26

9422

5.5

40.0

3.0

1.7

18.3

0.6

0.00

4.0

1.5

29.4

3.5

1.3

2001

23

3322

1.9

42.9

3.3

1.9

20.2

0.5

0.00

4.2

1.5

31.0

3.6

1.4

2002

22

5324

4.1

53.1

3.3

2.6

18.8

0.3

0.00

3.7

1.4

32.7

4.0

1.6

35

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

(Tab

le A

2 co

ntin

ued)

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le A

nim

al

Oil

Oil

Pork

Bee

f and

M

ilk

Mut

ton

Poul

try

Mea

t

Eg

gsA

quat

ic

Prod

ucts

Frui

tsSu

gar

Yun

nan,

Vill

age

1

1995

39

88

194.

916

4.9

4.7

6.5

18.2

1.8

0.23

4.5

3.4

2.9

26.7

3.5

1996

54

9618

6.5

156.

05.

16.

020

.92.

30.

224.

93.

52.

629

.03.

3

1997

59

8917

8.1

143.

55.

56.

019

.32.

30.

375.

03.

72.

426

.43.

1

1998

67

0215

0.7

176.

47.

56.

520

.93.

40.

266.

43.

63.

328

.93.

2

1999

66

4014

7.1

180.

86.

76.

323

.33.

20.

216.

23.

93.

030

.73.

0

2000

79

8113

2.0

187.

67.

46.

022

.54.

50.

486.

44.

33.

330

.43.

0

2001

66

3812

7.8

192.

17.

45.

621

.43.

10.

585.

44.

03.

129

.82.

7

2002

70

3912

5.5

196.

47.

75.

422

.13.

02.

135.

54.

03.

227

.34.

5

Yun

nan,

Vill

age

2

1995

69

022

7.9

164.

40.

00.

74.

30.

30.

002.

50.

60.

04.

10.

6

1996

57

722

0.0

164.

50.

00.

33.

10.

20.

001.

90.

00.

05.

90.

5

1997

67

420

9.7

124.

40.

60.

53.

80.

50.

001.

70.

10.

03.

70.

4

1998

79

024

3.2

131.

80.

11.

85.

01.

50.

001.

80.

20.

03.

90.

6

1999

51

020

2.6

76.4

0.1

0.8

4.0

0.5

0.00

2.3

0.1

0.0

3.6

1.0

2000

53

220

9.5

84.9

0.2

0.5

4.9

0.7

0.00

2.1

0.1

0.0

3.0

0.7

2001

50

920

5.3

104.

80.

20.

54.

50.

40.

031.

60.

00.

02.

40.

8

2002

57

820

2.9

114.

00.

20.

33.

01.

10.

031.

80.

00.

03.

20.

8

36

Proc

eedi

ngs o

f the

15th

Ann

ual C

onfe

renc

e of

the

Ass

ocia

tion

for C

hine

se E

cono

mic

s Stu

dies

Aus

tralia

(AC

ESA

)

Yea

r

Pe

r Cap

ita

Inco

me

(¥)

Food

grai

ns

(unm

illed

)

Veg

etab

les

Veg

etab

le A

nim

al

Oil

Oil

Pork

Bee

fand

Po

ultry

Mea

t M

utto

n

Milk

Eggs

Aqu

atic

Prod

ucts

Yun

nan,

Vill

age

3

1995

14

83

238.

711

7.5

2.1

3.0

10.9

0.0

0.00

0.4

1.0

0.3

3.4

2.4

1996

27

8021

9.4

119.

62.

13.

612

.90.

00.

040.

61.

40.

54.

42.

6

1997

19

8520

5.6

120.

11.

62.

911

.70.

00.

010.

30.

40.

53.

62.

0

1998

20

6117

3.9

112.

32.

14.

613

.30.

10.

030.

81.

20.

65.

73.

8

1999

21

4217

5.9

89.9

1.9

4.4

13.4

0.0

0.00

0.4

0.4

0.8

6.5

4.0

2000

19

2018

3.9

125.

22.

23.

317

.90.

00.

001.

30.

61.

35.

23.

9

2001

20

7017

7.0

116.

22.

23.

516

.30.

00.

001.

10.

71.

06.

92.

9

2002

21

3015

8.5

114.

73.

23.

918

.50.

10.

002.

00.

72.

09.

74.

1

Sour

ce: c

alcu

late

d fr

om R

CR

E su

rvey

dat

a.

37