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Abstract

Fluid milk is the most important product of Norwegian agriculture, and the decline in milk purchase has impact in many rural communities. By decomposing the milk purchase into cohort effects, age effects and year effects we show that the reason for the decline is that older generations purchase more milk than younger generations, and during lifetime consumption decline with age. Consequently, as younger generations replace older generations milk purchase decline. We show that towards 2021 the milk purchase will continue to fall.

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