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The research aims to study the effect of change in consumer expenditure on milk and its products in the urban areas of Egypt according to the different levels of income. The research problem is the decrease in average per capita milk consumption in Egypt compared to the standard rate recommended by international organizations. The research concluded the following results:  1- According to the family budget research for 2015/2016, it was found that the consumer expenditure is affected by many factors such as family income, family size, educational status and age of the head of household, where:  There was an inverse relationship between the income of the family and the expenditure on the on the milk and dairy products, average annual expenditure of the urban population on the dairy was about 10.4% of the average per capita consumption expenditure, and about 19% of the average expenditure on food and drinks for the income category less than 10 thousand pounds, and about 14.7% of the average expenditure on food and drink for the Income category more than 100 thousand pounds.  There was an inverse relationship between the size of the family and the consumer expenditure on the dairy in urban Egypt, is amounted about 1269.2 L.E in the family of one individual, while about 283.2 L.E in the family of 8 people or more.  Average annual per capita expenditure on dairy in urban Egypt increased by the educational level of the head of household. When the head of the household is illiterate the average annual expenditure per capita on the dairy and its products was 5.7%, 14.7% of the average per capita consumption expenditure and the average expenditure on food and drink respectively. On the other hand 4%, 16% of the average per capita consumption expenditure and the average expenditure on food and drink, respectively, when the head of the family has a university degree.   The average annual per capita expenditure in urban areas on the dairy and its products increased with the age of the head of the family, where it was  about 4.1%, 14.5% of the average per capita consumption expenditure and the average expenditure on food and drink, respectively, when the head of household is less than 20 years, To about 5.3%, 16.6% of the average per capita consumption expenditure ,and  the average expenditure on food and drink, respectively, when the age of head of household is greater than 65 years. 2- By studying the effects of changing in consumer expenditure on milk and dairy and products according to the research sample, it was found that:  The average monthly household consumption of milk, cheese, white cheese, cooked cheese, Turkish cheese, and yoghurt, was about 19.45, 1.43, 1.54, 0.82, 1.05, 0.77 kg respectively. The average monthly consumption per capita of milk, cheese, white cheese, cooked cheese, Turkish cheese and yoghurt, was about 5.26, 0.35, 0.4, 0.22, 0.27, 0.19 kg respectively.  A significant relationship between annual per capita consumption expenditure of dairy and its products according to income levels and family size.  By using the linear and logarithmic regression models between per capita consumption expenditure of dairy and its products and total annual per capita income, it was found that the elasticity is less than one for all income groups.  Lorenzu0027s curve indicates that there is inequity in income distribution. Therefore, the research recommends the following: 1. Increasing the production of milk, to increase the average per capita share to reach international standard.  2. Provide accurate database on the production and consumption of milk to help formulate the necessary policies to achieve justice in the distribution of consumer expenditure. 3. Do more studies on the factors that affecting the consumer to determine proper strategies for the marketing of dairy and its products.

STUDY THE EFFECT OF CHANGE IN SOME ECONOMIC FACTORS ON CONSUMER EXPENDITURE OF MILK IN URBAN EGYPT