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What’s Ahead for Consumer Fluid Milk and Cheese Demands?

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What’s Ahead for Consumer Fluid Milk and Cheese Demands?

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By Todd M. Schmit and Harry M. Kaiser – Dept. of Applied Economics & Management, Cornell University Trends in per capita demands for fluid milk and cheese in the U.S. have traced different paths over time – per capita cheese demand has been increasing while per capita fluid milk demand has fallen. U.S. dairy producers have questions about both trends; i.e., will the downward trend in fluid milk demand persist into the future and is the favorable trend for cheese approaching its peak? Predictions of future market demands and farm prices for dairy products are important determinants in developing future marketing strategies and farm production planning decisions. Studies have shown that recent changes in per capita demand for dairy products are mainly a result of changes in population demographics and food-spending patterns, and less influenced by direct changes in economic variables such as real price or income. For example, recent reductions in per capita fluid milk demand are leverage

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