> The demand for fluid milk has fallen in recent years and some suggest this
> is due to the industry not keeping pace with consumer preferences for
> convenience in packaging and lifestyle links in advertising.
I don't think that is the problem.
The economic demand for fluid milk has become inelastic and is now of about
the same economic elasticity as, let's say, aspirin or band-aids.
Most households need a certain limited amount of fluid milk per week for
breakfast cereal and and that just about all they need.
They buy the set amount of fluid milk they need just like they buy a certain
set amount of aspirin per year. Price isn't a factor when demand becomes
inelastic.
Ice cream and cheese are a little more elastic, but not so much as in earlier
years.
Things change. The consumers have been changing, of late, faster than the
dairy farmers.
The agricultural economists are, as usual, out of the loop all together.
--
Kindest regards,
========================
F. W. Owen
Owenlea Holsteins
9430 Spencer Road
Homerville, Ohio 44235
e-mail fwo@bright.net
home page http://www.bright.net/~fwo
voice & fax 330.625.2369
cell 330.635.2287
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