Development of milk consumption and marketing analysis of its demand

Abstract

The strategy of most households is to eliminate the negative effects of economic changes related mainly to the economic crisis by mobilizing available resources and reducing costs, but which cloud lead to a decrease in food consumption and changes in consumption patterns. Pensions and prices are factors that shape the demand for food and other estates. Both of these factors guarantee the economic viability of nutrition. Paper analyzes the development of the of milk consumption and level of its substitution by milk products. There was quantified the elasticity of demand and estimated own price elasticity and income elasticity. For the past 17 years, consumption of milk, except cheese, cottage cheese, sour milk products and butter, decreased. Expressed by linear regression model in recent years (since 1995) in Slovakia occurred overall reduction in the consumption of milk and dairy products by an average of 0.988 kg per capita per year. This development was mainly conditioned by the annual descent of demand for milk, as its consumption with little variation in average decreased annually by up to 1.88 kg per capita. This development is largely due to the increase of milk prices and especially the increasing supply of a wide range of quality and flavored sour milk and cheese products. Acidified milk product consumption in recent observed years increased and is expressed by the average growth factor of 0.6748 kg per capita per year. Prognosis with a five percent risk of error of estimate could increase their consumption up to 13.936 kg per capita in 2014. Consumption of cheese and curd should the increase the current trend by an average of 0.0476 kg per person and would be able to achieve the level of consumption of 11.03 kg per capita in 2014.