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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
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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

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