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Segmenting the Milk Market into bST-Produced and Non-bST-Produced Milk

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  • Tauer, Loren W.

Abstract

This paper discusses the value to milk producers and consumers of segmenting the milk market into bST-produced milk and non-bST-produced milk markets, versus losing milk consumption from consumers who will not consume bST-produced milk. Results indicate that both bST-using producers and non-bST-using producers benefit from a segmented market when compared to losing milk markets. Even if market loss does not occur, segmenting the market benefits producers not able to effectively use b~T and may even benefit bST users if the use of bST significantly shifts the supply curve for milk. Non-bST consuming consumers benefit from the availability of non-bST milk, and consumers who are indifferent to the use of bST pay about the same price in a segmented market.

Suggested Citation

  • Tauer, Loren W., 1993. "Segmenting the Milk Market into bST-Produced and Non-bST-Produced Milk," Staff Papers 121326, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudasp:121326
    DOI: 10.22004/ag.econ.121326
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    References listed on IDEAS

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    Keywords

    Livestock Production/Industries; Marketing;

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