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The historic rise in food manufacturing in the United States was largely the result of a shift from home to factory processing. To help explain this shift, the household demand for factory processing services is separated from the demand for the other components of manufactured food. The "observed" household demand for food processing services is then viewed as a residual demand; the difference between the household's consumer demand and its own supply of services. Demand relations are estimated for factory processing services related to two major categories of food, fruits and vegetables and bakery products. The broad conclusions are that the income elasticities for processing services for both categories of food are less than or equal to unity; and, that the price elasticities which reflect household substitution of factory processing for home processing are at least as great (in absolute value) as the respective income elasticities. [ABSTRACT FROM AUTHOR]