Hostname: page-component-78c5997874-v9fdk Total loading time: 0 Render date: 2024-11-03T01:00:26.740Z Has data issue: false hasContentIssue false
  • English
  • Français

Economic Analysis of the Impacts of Bovine Somatotropin on the Profitability of Representative Dairy Farms in the Northeast

Published online by Cambridge University Press:  15 September 2016

Aziz Elbehri  and
Robert D. Yonkers
Aziz Elbehri
Affiliation:
Department of Agricultural Economics and Rural Sociology, Penn State University
Robert D. Yonkers
Affiliation:
Department of Agricultural Economics and Rural Sociology, Penn State University
Get access

Abstract

This study evaluated the impacts of bST on the profitability of representative Pennsylvania dairy farms using a stochastic simulation model under two initial milk yield-per-cow levels, three levels of milk response to bST, and three milk price forecast scenarios. Results showed that farm profitability was improved with bST, but the magnitude of the benefits from bST depended on the farm's initial milk output per cow and the level of milk response to bST, both of which are related to quality of management. However, modest price declines due to bST-induced increases in the milk supply would have an offsetting effect on farm profitability.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 24 , Issue 1 , April 1995 , pp. 88 - 100
Copyright
Copyright © 1995 Northeastern Agricultural and Resource Economics Association 

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

Bauman, D.E. “Bovine Somatotropin: Review of an Emerging Animal Technology.” Journal of Dairy Science 75 (1992): 3432–51.CrossRefGoogle ScholarPubMed
Bauman, D.E., DeGeeter, M.J., Peel, C.J., Lanza, G.M., Gorewit, R.C., and Hammond, R.W. “Effect of Recombinantly Derived Bovine Growth Hormone (bGH) on Lactational Performance of High Yielding Dairy Cows.” Journal of Dairy Science 65 (1992)(Suppl. No 1): 121 (Abstract).Google Scholar
Chilliard, Y. “Long Term Effects of Recombinant Bovine Somatotropin (rbST) on Dairy Cow Performance: A Review.” Pp 61–87 In Sejrsen, K., Vesterggard, M., and Neimann-Sorensen, A. (eds). Use of Somatotropin in Livestock Production. New York, NY: Elsevier Applied Science. 1989.Google Scholar
Fallert, R.F., McGuckin, T., Betts, C., and Bruner, G. bST and the Dairy Industry: A National, Regional, and Farm-level Analysis. USDA-ERS; AER #579, October 1987.Google Scholar
Fallert, R.F., and Liebrand, C.B. “Economic Implications of Bovine Somatotropin for the United States Dairy Industry.” Journal of Dairy Science 74 (1991)(Suppl. No 2): 12–19.Google Scholar
Food and Agricultural Policy Research Institute. US Agricultural Outlook. Staff Report #1–93, University of Missouri, Columbia, MO. April 1993.Google Scholar
Ford, S. A. 1992 Pennsylvania Dairy Farm Business Analysis. Ext. Circ. 414, Pennsylvania State University, University Park, PA.Google Scholar
Greaser, G. The Farm Management Handbook. The College of Agriculture, Pennsylvania State University, University Park. 1991.Google Scholar
Hoffman, L. Rock Spring Experiment Station Yield Trials. Unpublished data. Pennsylvania State Experiment Station. Department of Agronomy. The Pennsylvania State University.Google Scholar
Kalter, R.J., Milligan, R., Magrath, W., Tauer, L., and Bauman, D. Biotechnology and the Dairy Industry: Production Costs and Commercial Potential, and the Economic Impact of the Bovine Growth Hormone. Agricultural Engineering Mimeo Series No. 85–20, Cornell Cooperative Extension, Cornell University, Ithaca, NY. 1985.Google Scholar
Monsanto. Posilac Product Label. Monsanto Company, St. Louis, MO. 1994.Google Scholar
Marsh, W.E., Galligan, D.T., and Chapula, W. “Economics of Recombinant Bovine Somatotropin Use in Individual Dairy Herds.” Journal of Dairy Science 71 (1988): 2944–58.Google Scholar
Marion, B.W., and Wills, R.L. “A Prospective Assessment of the Impacts of Bovine Somatotropin: A Case Study of Wisconsin.” American Journal of Agricultural Economics 72 (1990): 326–36.Google Scholar
McBride, B.W., Burton, J.L., and Burton, J.H. “Review: The Influence of Bovine Growth Hormone (Somatotropin) on Animal and Their Products.” Resource Development Agriculture 5 (1988): 1.Google Scholar
National Milk Producers Federation. The impact of Bovine Somatotropin (bST) on the U.S. Dairy Industry. Arlington, VA. May 1990.Google Scholar
Peel, C.J., and Bauman, D.E. “Somatotropin and Lactation.” Journal of Dairy Science 70 (1987): 474–86.Google Scholar
Pennsylvania Dairy Herd Improvement Association. 1991 Yearbook. Pennsylvania Dairyman's Association, New Cumberland, PA. 1992.Google Scholar
Pennsylvania Agricultural Statistics Service. Statistical Summary and Pennsylvania Department of Agriculture Annual Reports: 1982 to 1991. National Agricultural Statistics Service, USDA/Pennsylvania Dep. of Agriculture, Harrisburg.Google Scholar
Richardson, J.W., and Nixon, C.J. Description of FLIPSIM V: General Firm Level Policy Simulation Model. Bull. B-1528, Texas A&M University, College Station. 1986.Google Scholar
Thomas, J.W., Erdman, R.A., Galton, D.M., Lamb, R.C., Arambel, M.J., Olson, J.D., Madsen, K.S., Samuels, W.A., Peels, C.J., and Green, G.A. “Responses by Lactating Cows in Commercial Dairy Herds to Recombinant Bovine Somatotropin.” Journal of Dairy Science 74 (1991): 945–64.Google Scholar
United States Department of Agriculture. Agricultural Prices. 1991 Summary. National Agricultural Statistics Service, USDA, Washington, DC.Google Scholar
West, J.W., Bondari, K., and Johnson, J.C. Jr. “Effects of Bovine Somatotropin on Milk Yield and Composition, Body Weight, and Condition Score of Holstein and Jersey Cows.” Journal of Dairy Science 73 (1990): 1062–8.Google ScholarPubMed