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The Demand for and Supply of Food Marketing Services: An Aggregate View

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  • William H. Waldorf

Abstract

The central problem of this paper is to explain the decline in the farm share of U.S. consumer expenditures for food. The statistical analysis is mainly concerned with estimating the demand for and supply of food-marketing (distribution and processing) services. The findings indicate that the increase in household purchases of marketing services from 1929 to 1962 resulted from an increase in demand. The supply of marketing services kept pace with the increase in demand so that there was no apparent trend in the "real" price of services. About one-third of the post-World War II decline in the farm share of consumer expenditures for foods is attributed to a greater increase in the demand for services compared with the demand for farm products; two-thirds is attributed to an increase in the supply of farm products relative to demand.

Suggested Citation

  • William H. Waldorf, 1966. "The Demand for and Supply of Food Marketing Services: An Aggregate View," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(1), pages 42-60.
    • Handle: RePEc:oup:ajagec:v:48:y:1966:i:1:p:42-60.
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    File URL: http://hdl.handle.net/10.2307/1236178
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    Cited by:

    1. Reed, Albert J. & Elitzak, Howard & Wohlgenant, Michael K., 2002. "Retail-Farm Price Margins And Consumer Product Diversity," Technical Bulletins 33573, United States Department of Agriculture, Economic Research Service.
    2. Manchester, Alden, 1987. "Developing an Integrated Information System for the Food Sector," Agricultural Economic Reports 308031, United States Department of Agriculture, Economic Research Service.
    3. Tomek, William G. & Robinson, Kenneth L., 1977. "PART V. Agricultural Price Analysis and Outlook," AAEA Monographs, Agricultural and Applied Economics Association, number 337217, january.
    4. Wohlgenant, Michael K. & Haidacher, RichardC., 1991. "Approaches to Modeling Retail-Farm Price Spreads and Derived Demand Relationships for Food Commodities: A Selected, Annotated Bibliography," Staff Reports 278572, United States Department of Agriculture, Economic Research Service.

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