Hostname: page-component-76fb5796d-22dnz Total loading time: 0 Render date: 2024-04-25T12:37:59.809Z Has data issue: false hasContentIssue false
  • English
  • Français

Market Impacts Of Bovine Somatropin: A Supply And Demand Analysis

Published online by Cambridge University Press:  09 September 2016

Harry M. Kaiser
Harry M. Kaiser*
Affiliation:
Department of Agricultural Economics, Cornell University
Get access

Abstract

The potential economic impacts of the introduction of bovine somatotropin (bST) on U.S. milk supply and demand are analyzed using a national model of Class I and Class II milk markets. The results indicate that the introduction of bST will lead to lower milk prices, higher milk production, and larger government purchases of dairy products. Unlike previous economic analyses of bST, this analysis considers both supply and demand effects of bST. The implication is that studies that ignore potential demand-side effects may produce misleading results.

Keywords

bovine somatotropinsupply effectdemand effectdairy policy
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 24 , Issue 1 , July 1992 , pp. 271 - 282
Copyright
Copyright © Southern Agricultural Economics Association 1992

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Animal Health Institute. “Bovine Somatotropin (bST).” Alexandria, Virginia, 1988.Google Scholar
Chavas, J.R., and Klemme, R.M.. “Aggregate Milk Supply Response and Investment Behavior on U.S. Dairy Farms.” Am. J. Agr. Econ., 68 (1986): 55–66.Google Scholar
Fallert, R., McGuckin, T., Betts, C., and Bruner, G.. “bST and the Dairy Industry: A National, Regional, and Farm Level Analysis.” Washington, D.C.: USDA, ERS, October 1987.Google Scholar
Kaiser, H.M., and Tauer, L.W.. “Impact of Bovine Somatotropin on U.S. Dairy Markets Under Alternative Dairy Policy Options.” N. Cen. J. Agr. Econ., 11(1989): 59–73.Google Scholar
Kaiser, H.M., Scherer, C.W., and Barbano, D.M.. “Consumer Perceptions and Attitudes Towards Bovine Somatotropin.” NE. J.Agr. and Res. Econ., 21.1 (1992): 10–20.Google Scholar
Kaiser, H.M., Streeter, D.H., and Liu, D.J.. “Welfare Comparisons of U.S. Dairy Policies With and Without Mandatory Supply Control.” Am. J. Agr. Econ., 70 (1988): 848–858.Google Scholar
Kalter, R.J., Milligan, R., Lesser, W., Magrath, W., and Bauman, D.. “Biotechnology and the Dairy Industry: Production Costs and Commercial Potential of the Bovine Growth Hormone.” A.E. Res. 82-22, Department of Agricultural Economics, Cornell University, 1984.Google Scholar
Lesser, W., Magrath, W., and Kalter, R.. “Projecting Adoption Rates: Application of an Ex Ante Procedure to a Biotechnology Product.” N. Cen. J. Agri. Econ., 8(1986):159–174.Google Scholar
Magrath, W.B., and Tauer, L.W.. “The Economic Impact of bGH on the New York State Dairy Sector: Comparative Static Results.” N. East. J. Agri. andRes. Econ., 15(1986): 6–13.Google Scholar
Magrath, W.B., and Tauer, L.W.. “New York Milk Supply with Bovine Growth Hormone.” N. Cen. J. Agri. Econ., 10(1988): 235–241.Google Scholar
Marrion, B.W., and Wills, R.L.. “A Prospective Assessment of the Impacts of Bovine Somatotropin: A Case Study of Wisconsin.” Am. J. Agr. Econ., 72 (1990): 326–336.CrossRefGoogle Scholar
McGuckin, J.T., and Ghosh, S.. “Biotechnology, Anticipated Productivity Increases, and U.S. Dairy Policy.” N. Cen. J. Agri. Econ., 11(1989): 277–288.Google Scholar
McGuirk, A.M., and Kaiser, H.M.. “bST and Milk: Benefit or Bane?” Choices., 6(1991):20–26.Google Scholar
McGuirk, A.M., Preston, W.P., and Jones, G.M.. “Biotechnology and the Consumer: The Case of Bovine Somatotropin.” Staff Paper90-60, Department of Agricultural Economics, Virginia Polytechnic Institute and State University, 1991.Google Scholar
Preston, W.P., McGuirk, A.M., and Jones, G.M.. “Consumer Response to the Introduction of Bovine Somatotropin.” Economics of Food Safety, Caswell, J.A., ed. New York: Elsevier Science Publishing Co., Inc., 1991.Google Scholar
Schmidt, G.H. “Economics of Using Bovine Somatotropin in Dairy Cows and the Potential Impact on the U.S. Dairy Industry.” J. of Dairy Sci., 72(1989): 737–745.Google Scholar
Shapouri, H., Liebrand, C. Betts, Jesse, W.B., Crawford, T., and Carlin, J.. “Economic Indicators of the Farm Sector: Costs of Production—Livestock and Dairy, 1988.” Washington, D.C.: U.S. Department of Agriculture, Economic Research Service, March 1990.Google Scholar
Smith, B. “Consumer and Public School Perceptions on the bST Issue in Pennsylvania.” Farm Economics. Cooperative Extension Service, The Pennsylvania State University, March/April, 1991.Google Scholar
Tauer, L.W., and Kaiser, H.M.. “Optimal Dairy Policy With Bovine Somatotropin.” N. Cent. J. Agr. Econ., 13.1 (1991): 1–17.Google Scholar
Yonkers, R. D. Knutson, and Richardson, J. W.. “Dairy Farm Income as Affected by bST: Regional Characteristics.” Proceedings, National Invitational Workshop on Bovine Somatotropin, pp. 144–66. St Louis, MO, September 1987.Google Scholar