Over
the
years
the
demand
for
butter
in
Canada
has
decreased
resulting
in
surplus
of
butter.
In
1965
the
per capita
consumption
of
butter
in
Canada
was
8.23
Kg
which
decreased
by
about
70%
to
2.66
Kg
in
1994.
Previous
research
indicates that consumers
are
switching
fiom
butter
to
margarine
due
to
concems
about
heart
disease
and
high
cholesterol
levels
in
butter. Therefore, a
market
study
was
conducted
in
Montreal
to
estimate
the
potential
demand
for
a
new
product
called
"modified
butter
which
would
create
50%
less
cholesterol
in
the
body
than
regular
butter.
When
the
concept
of
"modified"
butter was introduced,
out of
157
respondents about
80%
of
the respondents
indicated
that
they would
buy
"modified"
butter.
Also,
the
total quantity
of
margarine
demanded
in
a
month
decreased
by
47%
and
the
regular butter
demand
decreased
by
85%.
The
market
share
of
"modified"
butter
cornes
to
about
67%.
The average
of
the
price
that
the
consumers
are
willing
to
pay
for
a
kilogram
of
"modified"
butter
is
$7.50.
A
detailed
cost
analysis
shows that
the
production cost of
"modified"
butter
at
the
experimental
level
is
high,
but
the
average
costs
show
a
decreasing
trend
when
the
scde
of
production
is
increased. If
the
econornies
of
scale
were
to
continue
dong
the
derived
cost
curves,
7
tons
of
"modified"
butter
would have
to
be
produced
to
reach
the
break-even
point
of
$7.50/Kg
cost of production.
This
shows
the
industrial
potential
of
producing
large
quantities of
"modified"
butter
by
taking
advantage of
the
economies
of
scale.
Furthemore,
the
overall
sales
of
butter
(regular
butter
plus
"modified"
butter) would
increase
by
about
25%
which
would
boost
the
consumption
of butter
in
Canada.
Over the years the demand for butter in Canada has decreased resulting in surplus of butter. In 1965 the per capita consumption of butter in Canada was 8.23 Kg which decreased by about 70% to 2.66 Kg in 1994. Previous research indicates that consumers are switching fiom butter to margarine due to concems about heart disease and high cholesterol levels in butter. Therefore, a market study was conducted in Montreal to estimate the potential demand for a new product called "modified butter which would create 50% less cholesterol in the body than regular butter. When the concept of "modified" butter was introduced, out of 157 respondents about 80% of the respondents indicated that they would buy "modified" butter. Also, the total quantity of margarine demanded in a month decreased by 47% and the regular butter demand decreased by 85%. The market share of "modified" butter cornes to about 67%. The average of the price that the consumers are willing to pay for a kilogram of "modified" butter is $7.50. A detailed cost analysis shows that the production cost of "modified" butter at the experimental level is high, but the average costs show a decreasing trend when the scde of production is increased. If the econornies of scale were to continue dong the derived cost curves, 7 tons of "modified" butter would have to be produced to reach the break-even point of $7.50/Kg cost of production. This shows the industrial potential of producing large quantities of "modified" butter by taking advantage of the economies of scale. Furthemore, the overall sales of butter (regular butter plus "modified" butter) would increase by about 25% which would boost the consumption of butter in Canada.
การแปล กรุณารอสักครู่..