U.S. Fluid Milk Demand: A Disaggregated Approach

In this study, we examine retail fluid milk data from Nielsen 2007 Homescan. The objective of this study is to determine the impact of demographic variables, retail prices and total milk expenditure on flavored and non-flavored milk purchases. A censored AIDS model is used in estimate the demand for fluid milk. Results reveal that demographic variables have statistically sig-nificant impacts on fluid milk purchases, and own-price elasticities are unity or elastic for almost all fluid milk categories. All expenditure elasticities are unity or greater except whole milk and 1% milk