Abstract:Using the extended Nerlovian model,this paper examines the responsiveness of the fresh milk supply based on panel data of eight provinces in China from 1992 to 2008. The results show that yields of early days have the maximum positive impact on fresh milk supply followed by yield per cow,stocks and WTO rules,while the effect of technological progress is smaller. Feed price is the main factor that slows down fresh milk output and obviously has adverse effect. Fresh milk price is inelastic and its short- and long-term supply elasticities are 0.109 and 0.773,respectively,and equilibrium adjustment cycle is approximate 7 years.