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Will Changing Demographics Affect U.S. CheeseDemand?

Published online by Cambridge University Press:  26 January 2015

Christopher G. Davis ,
Donald Blayney ,
Diansheng Dong ,
Steven T. Yen  and
Rachel J. Johnson
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 studyidentifies price and non-price factors affecting the demand fordifferentiated cheese products. Own-price and expenditure elasticities forall of the cheese products are statistically significant and elastic.Results also reveal that a strong substitution relationship exists among allcheese products. Although demographic influences are generally smaller thanthose related to prices and expenditures, empirical findings show thathousehold size, college educated female heads of household who are age 40and older, residing in the South, Central, and Western regions of the UnitedStates, as well as Black heads of household, have positive statisticallysignificant effects on consumers' cheese purchases.

Keywords

cheese formcheese purchasedemand elasticitiesdemographic and economic factorsNielsen Homescan dataC25D12Q11

Information

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 43 , Issue 2 , May 2011 , pp. 259 - 273
Copyright
Copyright © Southern Agricultural Economics Association 2011

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