CONSUMER DEMAND FOR NEW REDUCED-FAT FOODS - AN ANALYSIS OF CHEESE EXPENDITURES

The dairy products industry is adjusting the types of products being m arketed by increasing the availability of reduced-fat foods. The desir e of consumers to purchase foods with lower fat content is affecting t he cheese market with the introduction of recently developed reduced-f at cheese varieties. Econometric models of cheese expenditures for thr ee specific cheese types are estimated, which incorporate censoring of cheese expenditures and the interrelationship between expenditures of full and reduced-fat varieties.