DairyCast Industry

What Dairy Products Do U.S. Households Demand?

The USDA Economic Research Service published its report An Analysis of U.S. Household Dairy Demand, providing an assessment of the effects of food prices and consumer incomes on agricultural food demand. This deeply analytical report offers usable market research information for the dairy food producers and those dairy operations that market their own products.

Consumers’ purchases of bulk ice cream, refrigerated and frozen yogurts, reduced-fat milk, canned milk, natural cheese, and cottage cheese are sensitive to changes in overall dairy expenditures. Strong substitution relationships are found among bulk ice cream, reduced-fat milk, and natural cheese and other products in the demand system.

What is the Economic Outlook for Farms and Ranches?

The Agricultural and Food Policy Center (AFPC) at Texas A&M University and the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri recently published their Representative Farms Economic Outlook for December 2010. This baseline report offers an assessment of farms, crops and their financial outlook.

Feed grain producers across the nation should increase the financial strength of their operators over the next five years, helped by strong commodity prices. Farms that have been in marginal or poor financial position in the last several years because of lower grain prices should recover and climb into stronger financial positions.

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