CONSUMER DEMAND FOR EGGS AND MARKET IMPLICATIONS

Abstract

Domestic population growth and greater use of processed eggs over the past three decades offset the decline in per-capita shell egg use and left total egg consumption for domestic food purposes averaging about 5 billion dozen a year. This paper analyzes effects of prices, income, and household characteristics on the demand for eggs. Evidence from a complete demand system indicates that eggs are more price inelastic than either red meat or poultry. The own-price elasticity for eggs was found to be -0.1429. The income elasticity for eggs, derived from an analysis of the 1977-78 USDA Nationwide Food Consumption Survey, was estimated to be approximately -0.05. Region of household residence, season, race, age, and household size also influence egg consumption and expenditures.