The Increase in Protein Demand for China's Livestock Sector and its Implications for the International Agricultural Trade

Abstract

This paper analyses the impact of the economic structure of China's meat market and various livestock inventories on the demand for and supply of protein feed, with particular consideration of its world market implications. The results of econometric analyses indicate that the effects of changes in livestock production are stronger on soybean meal demand than they are on soybean demand. Increasing meat output directly affects soybean meal demand. While world market prices display a significant effect on soybean imports, China's WTO accession does not make a difference. China's protein feed import dependency rate has increased substantially.

Keywords

livestock protein demand soybean import market two-country partial equilibrium trade model China

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