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U.S. Consumer Demand for Organic Fluid Milk by Fat Content

Author

Listed:
  • Li, Xianghong
  • Peterson, Hikaru Hanawa
  • Xia, Tian

Abstract

This study examined consumer demand for organic fluid milk in the current maturing organic market using a nationwide weekly retail scanner data set. An Almost Ideal Demand System in which both organic milk and conventional milk were further decomposed into products with different fat content was estimated. The demand for organic milk was shown to be price elastic. The results also revealed substitutions between organic milk and conventional milk products differing in fat content. The substitution pattern was asymmetric and there was greater movement toward organic milk than back toward conventional milk for the same relative change in price.

Suggested Citation

  • Li, Xianghong & Peterson, Hikaru Hanawa & Xia, Tian, 2012. "U.S. Consumer Demand for Organic Fluid Milk by Fat Content," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(1), March.
  • Handle: RePEc:ags:jlofdr:139451
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    File URL: http://purl.umn.edu/139451
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    References listed on IDEAS

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    1. Zhuo Liu & Christopher A. Kanter & Kent D. Messer & Harry M. Kaiser, 2013. "Identifying significant characteristics of organic milk consumers: a CART analysis of an artefactual field experiment," Applied Economics, Taylor & Francis Journals, vol. 45(21), pages 3110-3121, July.
    2. John C. Bernard & Daria J. Bernard, 2007. "What Is It About Organic Milk? An Experimental Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 826-836.
    3. Pedro A. Alviola & Oral Capps, 2010. "Household demand analysis of organic and conventional fluid milk in the United States based on the 2004 Nielsen Homescan panel," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 369-388.
    4. Kathleen Brooks & Jayson L. Lusk, 2010. "Stated and Revealed Preferences for Organic and Cloned Milk: Combining Choice Experiment and Scanner Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1229-1241.
    5. Tirtha Dhar & Jeremy D. Foltz, 2005. "Milk by Any Other Name … Consumer Benefits from Labeled Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 214-228.
    6. Glaser, Lewrene K. & Thompson, Gary D., 2000. "Demand For Organic And Conventional Beverage Milk," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36346, Western Agricultural Economics Association.
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    Cited by:

    1. repec:ags:aaea13:150610 is not listed on IDEAS
    2. Delbridge, Timothy A., 2013. "Threshold Effects in Transition to Organic Dairy Production," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150554, Agricultural and Applied Economics Association.
    3. Schroeter, Christiane & Nicholson, Charles F. & Meloy, Margaret G., 2016. "Consumer Valuation of Organic and Conventional Milk: Does Shelf Life Matter?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), November.

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