Urban households account for most of the milk consumption in China, but their consumption is hampered by safety concerns. Using survey data collected in Beijing and Harbin in 2010, this paper simultaneously analyses urban households' milk consumption using a multiple linear model and their willingness-to-pay for milk safety using an ordered choice model. The results of this study show that as income increases, urban households consume more milk and are willing to pay a higher premium for milk safety. Modern food marketing channels play a positive role in stimulating milk consumption and building consumers' confidence in milk safety. The growth in the elderly population influences milk consumption positively, but their demand for milk safety is negatively affected by higher price. The combined analysis of households' demand for milk quantity and safety may be useful to the Chinese government in promoting the development of the domestic milk industry and to dairy firms in exploring the milk market in China.

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The objective of this study is to explore the determinants of urban at-home consumption demand for powdered milk in Guangdong province from 2007 to 2009. A double-hurdle model is used in this analysis based on survey data. The data include 8188 household distributed in 15 cities and prefectures of Guangdong province. Major findings show that the income growth of urban household, an increase in the level of education of the householder, and the different age groups within the household all have positive effects on urban at-home consumption demand for powdered milk. The prices of powdered milk have negative effects on milk consumption. Families in the Pearl River Delta consume more powdered milk than families in the other regions. The powdered milk consumption has not been significantly affected by the 2008 Chinese melamine tainted milk scandal.

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