Excerpt from Effect of Consumer Purchases of Nonfat Dry Milk on Purchases of Fresh, Evaporated, and Filled Milk

Practically all of the M77 families comprising the sample purchased fresh milk during each period. Almost one in six families made one or more purchases of nonfat dry milk in each period, and about one in two families purchased evaporated milk. Filled milk was purchased in each period by nearly one in three families.

Since nonfat dry milk could be used as a low fat substitute for other dairy products, such as fresh and evaporated milk, much conjecture has arisen on the amount of substitution taking place between these products in the home. This study was undertaken to provide dairy producers and others in the trade with information concerning the degree to which the improved instant nonfat dry milk is being used as a substitute or supplement for other dairy products.

Producers receive the highest unit returns for milk consumed in fluid form. Evaporated milk and nonfat dry milk are manufactured dairy products. However, milk manufactured into evaporated milk yields a nigrer unit return to producers than when made into nonfat dry milk. But returns to producers selling milk to butter-powder plants differ only slightly from returns to producers selling milk to evaporators in a given area. Because of these facts, the dairy industry is vitally concerned with consumption trends. The analysis included filled milk, since this product is sold in Illinois although not available in most other States.

The household market for nonfat dry milk in the United States increased from about 2 million pounds in 19ll8 to 155 million pounds in 1957. The increase was especially notable following the introduction of a new instant nonfat dry milk product in the second half of 195k. Sales of nonfat dry milk for home use increased from approximately 96 million pounds in 1953 to million pounds in 19515 an increase of percent. In the 1955-57 period, sales of nonfat dry milk in consumer size packages continued to move upward, but at a slower pace.

It is estimated that less than 1 percent of the total domestic nongovernment supply of nonfat dry milk was marketed for home consumption in 191i8. This increased to close to 20 percent in 1956-57. 2.

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