Dairy Product Demand Projections to 1975: Their Impact on South Dakota\u27s Dairy Industry

The economic history of the United States is replete with examples of adjustment and readjustment by firms and industries. Such adjustments are usually made necessary by changes in the economic environment, and failure to adjust rather quickly and completely to such changes can mean economic disaster for entrepreneurs within an industry, and can result in insufficiencies in the total economic system. To offset the effects of change, it is often advantageous to attempt to foresee change in the economic environment, to estimate the future impact of change on relevant sectors of the production and marketing system, and to recommend adjustments in particular industries which may help to relieve the inefficiencies which otherwise might arise. This statement generally indicates the nature of this study. There have occurred and are presently occurring important changes in the social and economic environment affecting the marketing of dairy products. Population growth, concentration, and age composition; income and its distribution; competitive pricing within and outside of the dairy industry; non-price competition from other foods; and health and dietary ideas of consumers, are all factors that have been changing and affecting the consumption pattern of dairy products. Also, technological changes have been such that the volume of fluid milk plants and dairy product manufacturing plants has been increasing, while the number of plants has declined. Smaller plants are usually unable to take advantage of technological change due to the lack of capital resources, small volume, position in the market, and sometimes because of poor management; and thus their operation may lead to difficulties. Although many adjustments have been made in South Dakota’s dairy industry to counteract such changes, indications are that further adjustments will be necessary as the economic conditions surrounding the demand and supply of dairy products continue to change. The objectives of this study were: (1) to project probable future United States demand for dairy products to 1975 and (2) to recommend the type of milk products that should be produced in South Dakota