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Will Changing Demographics Affect U.S. Cheese Demand?

Published online by Cambridge University Press:  26 January 2015

Christopher G. Davis
Affiliation:
Markets and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, Washington, D.C
Donald Blayney
Affiliation:
Markets and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, Washington, D.C
Diansheng Dong
Affiliation:
Food Economic Division, Economic Research Service, U.S. Department of Agriculture, Washington, D.C
Steven T. Yen
Affiliation:
Department of Agricultural and Resource Economics, the University of Tennessee, Knoxville, TN
Rachel J. Johnson
Affiliation:
Markets and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, Washington, D.C
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Abstract

U.S. cheese consumption has grown considerably over the last three decades. Using a censored demand model and Nielsen Homescan retail data, this study identifies price and non-price factors affecting the demand for differentiated cheese products. Own-price and expenditure elasticities for all of the cheese products are statistically significant and elastic. Results also reveal that a strong substitution relationship exists among all cheese products. Although demographic influences are generally smaller than those related to prices and expenditures, empirical findings show that household size, college educated female heads of household who are age 40 and older, residing in the South, Central, and Western regions of the United States, as well as Black heads of household, have positive statistically significant effects on consumers' cheese purchases.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2011

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