Abstract
We investigated consumer acceptability of reconstituted whole milk and estimated consumer demand response to change in price relationships between reconstituted fluid and fresh fluid milk. Sensory panelists tested five samples including 100% reconstituted whole milk, 100% fresh fluid milk, and 75:25, 50:50, and 25:75 blends of each. In a consumer home placement test, participants evaluated 100% reconstituted milk, 100% fresh milk, and a 50:50 blend. All five products in the laboratory panel were rated acceptable by inexperienced participants (48) whereas the 75 and 100% reconstituted samples were slightly unacceptable to persons (15) claiming experience in dairy products judging. Economic responses by laboratory taste panelists indicated they would pay an average of 16% less for reconstituted than fresh milk. Participants in the home placement test (303) rated the reconstituted samples significantly lower than the fresh fluid samples, but all mean sample scores were in the acceptable range. Cross-price elasticity estimates indicated that a reduction in the price of reconstituted milk by 1% would result in a 5% to 7.6% decrease in fresh fluid milk consumption.
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