An Economic Analysis of Potato Demand in China

This paper examines the changes in China's potato production, consumption and trade, presents an analysis of urban consumer demand for potatoes, sweet potatoes and starch products, and discusses the trends of China's potato market and potential global impacts. The time-series data suggest that Chinese consumers have significantly increased their average potato consumption and reduced sweet potato consumption since the mid 1980s. Demand analysis based on urban household survey data indicates that consumer demand for potatoes was more elastic regarding income and own price than the demand for sweet potatoes and starch products. Findings from this study suggest that potato demand in China is likely to continue to increase at a significant rate and China is likely to remain the world's largest potato producer. Also, China's huge potato market and ongoing economic transition are expected to enhance its role in the global market of potatoes and potato products.