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Have Milk Fat Preferences Shifted? Structural Analysis of New York Milk Consumption

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  • Ueda, Takeshi
  • Frechette, Darren L.

Abstract

Consumption of lowfat and skim milk has increased substantially over the past decade. This study investigates whether the change is due to price and expenditure effects or to a more fundamental preference change in milk demand. Parametric and nonparametric analytical approaches provide a comprehensive analysis of structural change in milk consumption in New York State. A nonparametric approach first finds evidence of structural change. A parametric likelihood-ratio test then confirms the existence of structural change using a Kalman filter specification. The value of this technical analysis of milk preferences is its implication for labeling initiatives. Milk fat labels have allowed consumers to act on a new set of preferences, thereby improving consumer welfare.

Suggested Citation

  • Ueda, Takeshi & Frechette, Darren L., 2002. "Have Milk Fat Preferences Shifted? Structural Analysis of New York Milk Consumption," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(1), pages 71-83, April.
    • Handle: RePEc:cup:agrerw:v:31:y:2002:i:01:p:71-83_00
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    Cited by:

    1. Ariel Soto‐Caro & Feng Wu & Tian Xia & Zhengfei Guan, 2023. "Demand analysis with structural changes: Model and application to the US blueberry market," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1100-1116, October.
    2. Jin, Hyun Joung & Koo, Won W., 2003. "The Effect Of Food-Safety Related Information On Consumers' Preference: The Case Of Bse Outbreak In Japan," 2003 Annual meeting, July 27-30, Montreal, Canada 22043, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Bingham, David & Dharmasena, Senarath & Capps, Oral, Jr. & Salin, Victoria, 2014. "Demographic and Economic Factors Affecting Demand for Brand-Level Milk in Texas," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162369, Southern Agricultural Economics Association.
    4. Pofahl, Geoffrey M. & Capps, Oral, Jr. & Clauson, Annette L., 2005. "Demand for Non-Alcoholic Beverages: Evidence From The ACNielsen Home Scan Panel," 2005 Annual meeting, July 24-27, Providence, RI 19441, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Lefèvre, Mélanie, 2014. "Do Consumers Pay More for What They Value More? The Case of Local Milk-based Dairy Products in Senegal," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), pages 1-20, April.
    6. Asche, Frank & Zhang, Dengjun, 2013. "Testing Structural Changes in the U.S. Whitefish Import Market: An Inverse Demand System Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(3), pages 453-470, December.
    7. Dharmasena, Senarath & Capps, Oral, Jr., 2009. "Demand Interrelationships of At-Home Nonalcoholic Beverage Consumption in the United States," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49443, Agricultural and Applied Economics Association.

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