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The Household Demand for Major Dairy Products in the Southern Region*

Published online by Cambridge University Press:  05 September 2016

William T. Boehm
William T. Boehm*
Affiliation:
Virginia Polytechnic Institute andState University
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Extract

Changing conditions in market organization and competitive nature of the United States dairy industry are signaling a different pricing system for milk and related products. Market conditions and demand patterns which led to adoption of the present pricing system no longer exist. The reservoir of manufacturing grade milk in Minnesota and Wisconsin is continually being depleted, as producers in that area either leave the business or shift to Grade “A” fluid outlets.

A changing demand for milk and other dairy products has also contributed to the present need for a reconsideration of the milk pricing process. Per capita consumption of beverage milk has stabilized at about 292 pounds per year. There have been, however, substantial increases in the consumption rate for some manufactured products, especially cheese. Ironically, with somewhat stabilized increases in population growth, future expansion for the dairy industry may rest with the potential for increased consumption of those products traditionally serving as “residual claimants”.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 7 , Issue 2 , December 1975 , pp. 187 - 196
Copyright
Copyright © Southern Agricultural Economics Association 1975

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Footnotes

*

Journal Paper No. 5896 of the Purdue University Agricultural Experiment Station. The paper is based in part on the author's unpublished 1974 Purdue University Ph.D. thesis An Econometric Analysis of the Household Demand for Major Dairy Products. The constructive comments by E.M. Babb, M.C. Conner, H.M. Harris, Jr., J.C. Purcell and three anonymous Journal reviewers on earlier drafts of this paper are acknowledged.

References

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