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Asian Journal of Agricultural Research

Year: 2011 | Volume: 5 | Issue: 3 | Page No.: 176-185
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Authors

Lu Xiaojing

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Research Article

The Cause and Effect Analysis of the Melamine Incident in China

Lu Xiaojing
Present study aimed at discovering the causes and effects of the melamine incident that shook the whole of China. Mainly descriptive statistics, such as average, mode, dispersion, association were used in the study. The result showed that the melamine incidence caused the reduction in the domestic production of dairy products in China and consequently surge in the import of dairy products. Export of dairy products has decreased and many dairy firms incurred financial losses. The major causes for such incidence were the low-income consumers, market failure due to asymmetric information and lack of government supervision. Present study pointed out that core of food safety problem in China lies in the demand for cheap food due to low afford ability of low-income consumers.
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