Effects of income and demographics on expenditures for whole, lowfat, and skim milk in the U.S.

This research was conducted in order to better understand and identify the demographic characteristics of markets for whole, lowfat, and skim milk in the United States. The cross sectional data used in this study was gathered by the U. S. Department of Agriculture (USDA) in their 1987- 88 National Food Consumption Survey (NFCS). The effects of income and other socioeconomic characteristics on the probability that a household will buy whole, lowfat, and skim milk were measured and compared. The probit model was used to examine these effects statistically.

The results showed that distinct expenditure patterns do exist for the three types of fluid milk. Income before taxes tended to decrease the probability of expenditures for whole milk while having had a positive effect on skim milk. General nutritional information was found significant and tended to increase the probability of lowfat and skim milk expenditures. The level of formal education of the food manager also had a positive effect on the probability of expenditure of lowfat and skim milk. Increasing formal education along with nutritional awareness had negative effects on the probability of whole milk expenditure. These results have important implications for the dairy industry, health professionals, and policy makers. Potential target markets may be identified from these results for whole, lowfat, and skim milk.