Progress 10/01/10 to 09/30/15
Outputs Target Audience:
Nothing Reported
Changes/Problems:
Nothing Reported
What opportunities for training and professional development has the project provided?
Nothing Reported
How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts What was accomplished under these goals?
PI is no longer with the college.
Publications
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Progress 10/01/13 to 09/30/14
Outputs Target Audience:
Nothing Reported
Changes/Problems:
Nothing Reported
What opportunities for training and professional development has the project provided?
Nothing Reported
How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts What was accomplished under these goals?
PI is no longer with the college.
Publications
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Progress 01/01/13 to 09/30/13
Outputs Target Audience:
Nothing Reported
Changes/Problems:
Nothing Reported
What opportunities for training and professional development has the project provided?
Nothing Reported
How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts What was accomplished under these goals?
PI is no longer with the college.
Publications
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Progress 01/01/12 to 12/31/12
Outputs OUTPUTS: The U.S. food consumption patterns including fruits and vegetables have changed substantially over time because of changes in population composition, consumer preference, personal income and education level, social structures, government intervention, and health and diet concerns. Hence, it is very important to understand the interrelationships between fruits and vegetables and other food commodities. A better understanding and knowledge of the demand structure and its associated effects of prices and income changes on the quantity demanded is useful for forecasting future demands and in appraising the likely outcome of potential changes in national food programs. We develop a complete demand system that includes 6 broad food groups and 1 nonfood group. The food groups are: (1) meats, (2) staples, (3) fresh fruits, (4) fresh vegetables, (5) processed fruits and vegetables, and (6) desserts. The complete system consisting of 37 individual food items plus one nonfood group was estimated based on the data that cover the period from 1953 through 2008. The empirical estimation was implemented in sequential steps using the iterative seemingly unrelated regression procedure. The study yields a total of 1,482 estimated demand elasticities to update previously reported elasticities based on more recent time series data. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts There are a few implications could be drawn from the empirical results. First, increasing population has driven up demand for food. By 2020, the United States is expected to add between 50 and 80 million people and food expenditures are projected to rise 26 percent between 2000 and 2020. The projected increases in U.S. population will boost food sales by $208 billion. The changing age compositions of the population and growing ethnic diversity are also expected to affect per capita food consumption. For example, the consumption of milk usually decreases as age increases. Increasing Hispanic population is also expected to decrease per capita consumption of dairy products. Our results show that expenditure share on milk consumption decreased from 1.65% to 1.31%. The changes in substitution and complementary relationships among food groups and individual categories observed in this study reflect changes in food consumption patterns and lifestyle. People used to consume a great amount of red meats such as beef and pork have shifted to consume more poultry and fishery products because of healthy consideration. Americans have accustomed to eat out more frequently as they become more affluent. As income increases, consumers are more likely to choose convenience and healthful food by changing their diets to include more fruits and vegetables and less meats. Our results show that expenditures on processed food products such as frozen fruits and fruit juice, canned tomatoes and canned fruits cocktail have increased over the study period. Last but not least, results presented in the study reflect reduction in consumption on food with high energy and caloric as manifested in recent consumer trends.
Publications
- No publications reported this period
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Progress 01/01/11 to 12/31/11
Outputs OUTPUTS: The demand and consumption of fruits and vegetables in the United States have grown significantly in recent years due to increasing concerns about health and dietary quality of Americans. The U.S. Department of Agriculture has been promoting and recommending increased consumption of fresh produce consistently through its publication of the Dietary Guidelines for Americans. Since the 1990s, a growing body of research has focused on the degree to which the production and supply of produce needs to be increased to meet the daily intake level recommended by the Guidelines. However, research on the demand for various forms of fruit products has been relatively unexplored. Knowledge of price and income elasticities for different form of fruit products is important for farmers, marketers, and retailers in terms of adopting production and marketing schemes that optimize the use of farmland and shelf space. Thus, a study was conducted to estimate a demand system of fruit products and to analyze the demand interrelationships among various product forms. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts A quadratic AIDS model was estimated for a demand system consisting of fresh fruits, fruit juices, and frozen and dried fruits based on annual per capita consumption data in the United States. The results show that all own-price elasticities are negative and less than one, suggesting that demand for these fruit products is price inelastic as to be expected. Fruit juices are found to be expenditure elastic (1.732) conditional on the total expenditure on fruits, while fresh fruits and frozen and dried fruits are found to be expenditure inelastic, 0.985 and 0.352, respectively. The fact that expenditure elasticity for fresh fruits is found being close to unitary suggests that demand for fresh fruits is likely to respond proportionally to changes in the amount of money expended on fruits. Furthermore, the demand system is found to be dominated by complementarity relationships, which is reasonable given that the demand is for different forms of fruit products instead of different fruits. The implications to be drawn from this study suggest that the demand for fresh fruits has become more responsive to changes in income than previously reported. The magnitude of the expenditure elasticity for fruit juices suggests that the demand for convenience is highly sensitive or influenced by changes in income. In other words, increasing in consumers' income will increase their demand for fruit juices more than proportionally. Further research could be conducted to examine the welfare implications of the elasticity estimates due to some policy changes such as changes in indirect taxes on fruits.
Publications
- Zhang, F., Huang, C.L., Lin, B.-H., Epperson, J.E. and Houston, J.E. 2011. National demand for fresh organic and conventional vegetables: Scanner data evidence. Journal of Food Products Marketing 17(4):441-458.
- Mekonnen, D., Huang, C.L. and Fonsah, E. Analysis of fruit consumption in the U.S. with a quadratic AIDS model. Selected paper presented at the SAEA annual meeting, Birmingham, AL, 2/4-7, 2012.
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