Ma, Hengyun; Huang, Jikun; Fuller, Frank H.; Rozelle, Scott

Canadian Journal of Agricultural Economics Vol. 54 (2006): 101-119.

The overall goal of this study is to better understand food-away-from-home (FAFH) consumption in
urban China. We use national statistical sources and our own data to examine the trends in FAFH
during the late reform period and to analyze the determinants of FAFH demand, examining how
different groups of consumers have participated in this new area of consumption. Besides the normal
Tobit model for total food expenditure away from home, a system of multivariate Tobit equations
was estimated simultaneously for three categories of foods consumed outside of the home. The results
show that the rapid increase of FAFH demand, a rise that is fueled by higher incomes, is changing
consumption patterns in Chinaﾒs post-reform urban economy. We also use our findings to illustrate
how omission of accounting for FAFH trends by Chinaﾒs official statisticians has affected the reported
trends in national meat supply and demand statistics.