Food security and trade policies: evidence from the milk sector case study

Abstract

Purpose: Milk is one of the most produced, consumed and protected agricultural commodities worldwide. The purpose of this paper is to assess how trade-opening policies can foster food security in the Chinese milk sector. Design/methodology/approach: The empirical evidence proposed in our paper is based on time series data from the National Bureau of Statistics of China (2019) and FAOSTAT (2020). Differences in income elasticity between urban and rural areas are estimated by OLS regressions. The data also provide empirical evidence to assess to what extent and to which countries China is resorting to meet its growing demand. Findings: Per-capita milk consumption of Chinese is rising. The authors’ estimates show that milk income elasticity is higher in rural areas. China is also progressively increasing its dependence on imports. Producers who benefit the most are those from countries implementing trade-opening policies. Research limitations/implications: Other methods could be applied, by way of example, the gravitational model. Practical implications: Trade agreements and the removal of barriers could be effective responses to protectionist pressures and to food security concerns. Social implications: The case examined is of particular interest as it intervenes on food security and safety. Originality/value: The paper adds value and evidence to the effects of trade on food security in a country with limited and exploited natural resources addressing a health emergency and environmental concerns.