This study analyzes the development of the food industry in mainland China during 1952 – 1981. The topic is an important focus for research because development and growth in the food industry can improve the standard of living of the approximately one billion Chinese currently living in mainland China.
The paper is divided into six sections. Section one introduces the significance of the food industry. Section two explores the roles played by this sector of the national economy. Section three compares the elasticity of consumption of the various products produced by the food industry with the income elasticity of demand in a free economic system. Section four examines the development of the sector during the past thirty years. Section five assesses the future outlook of the food industry. Section six gives a brief summary conclusion.
The major findings of this study are as follows:
(1) Food consumption grew at an annual rate of 10.31 percent between 1978 and 1981;
(2) Using data on food production released in mainland China and CIA data, the elasticity of consumption of production in the sector is estimated at 3.0 percent;
(3) Government policies connected with the development of the food industry have been unstable and have become ambiguous during the past thirty years. This has largely been due to political instability and economic readjustment;
(4) Based on mainland Chinese data, the percentage share of the total value of food industry products in total agricultural and industrial production has been 9 percent during the past three years. The share of the food industry in the total value of industrial products has been 12 percent during the same period. The export value of food exports has represented about one-seventh of the total value of exports during the same period.
