IDEAS home Printed from https://ideas.repec.org/p/ags/cudawp/128119.html
   My bibliography  Save this paper

The Value of Segmenting the Milk Market into bST-Produced and Non-bST-Produced Milk

Author

Listed:
  • Tauer, Loren W.

Abstract

This article discusses the value to milk producers and consumers of segmenting the milk market into bovine Somatotropin- (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 bST, 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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Tauer, Loren W., 1992. "The Value of Segmenting the Milk Market into bST-Produced and Non-bST-Produced Milk," Working Papers 128119, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:128119
    DOI: 10.22004/ag.econ.128119
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/128119/files/Cornell_Dyson_wp9209.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.128119?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    2. McGuirk, Anya M. & Preston, Warren P. & Jones, Gerald M., 1992. "Introducing Foods Produced Using Biotechnology: The Case Of Bovine Somatotropin," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(1), pages 1-15, July.
    3. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    4. B. S. Fisher, 1981. "The Impact of Changing Marketing Margins on Farm Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 261-263.
    5. McGuirk, Anya M. & Preston, Warren P. & Jones, Gerald M., 1992. "Introducing Foods Produced Using Biotechnology: The Case Of Bovine Somatotropin," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(1), pages 209-223, July.
    6. Kaiser, Harry M. & Scherer, Clifford W. & Barbano, David M., 1992. "Consumer Perceptions And Attitudes Towards Bovine Somatotropin," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(1), pages 1-11, April.
    7. William B. Magrath & Loren W. Tauer, 1988. "New York Milk Supply with Bovine Growth Hormone," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 233-241.
    8. R. K. Lindner & F. G. Jarrett, 1978. "Supply Shifts and the Size of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(1), pages 48-58.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jau-Rong Li & Dawn D. Thilmany, 1998. "Branded pork consumption in Taiwan: Analysis of market and product choice," Agribusiness, John Wiley & Sons, Ltd., vol. 14(2), pages 127-138.
    2. Lohr, Luanne, 1998. "Welfare Effects Of Eco-Label Proliferation: Too Much Of A Good Thing?," Faculty Series 16642, University of Georgia, Department of Agricultural and Applied Economics.
    3. David Smith & J. Skalnik & Patricia Skalnik, 1997. "The bST debate: The relationship between awareness and acceptance of technological advances," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 14(1), pages 59-66, March.
    4. Lohr, Luanne & Krissoff, Barry, 2001. "Consumer Effects Of Harmonizing International Standards For Trade In Organic Foods," Faculty Series 16726, University of Georgia, Department of Agricultural and Applied Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Bernard, Daria J. & Mathios, Alan D., 2005. "Factors Affecting Consumer Choice and Willingness to Pay for Milk Attributes," 2005 Annual meeting, July 24-27, Providence, RI 19366, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Li, Chenguang & Sexton, Richard J., 2009. "Impacts of Retailers’ Pricing Strategies for Produce Commodities on Farmer Welfare," 2009 Conference, August 16-22, 2009, Beijing, China 51720, International Association of Agricultural Economists.
    4. Ronald W. Cotterill, 1998. "Estimation of Cost Pass Through to Michigan Consumers in the ADM Price Fixing Case," Food Marketing Policy Center Research Reports 039, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    5. Kaiser, Harry M., 1992. "Market Impacts Of Bovine Somatropin: A Supply And Demand Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(1), pages 1-12, July.
    6. Griffith, Garry R. & Moore, Walter B., 1991. "Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967-1988," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(1), pages 1-28, April.
    7. Hudson, Darren & Jones, Tom, 2001. "Willingness to Plant Identity Preserved Crops: The Case of Mississippi Soybeans," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(3), pages 475-485, December.
    8. Brorsen, B. Wade & Grant, Warren R. & Richardson, James W. & Schnake, L.D., 1984. "Impacts Of Price Variability On Marketing Margins And Producer Viability In The Texas Wheat Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(2), pages 1-11, December.
    9. Sun, Theresa & Myers, Lester, 1985. "A Waterway Tax on Grains: A Functional Market Analysis," Technical Bulletins 156820, United States Department of Agriculture, Economic Research Service.
    10. Lydia Zepeda & Robin Douthitt & So‐Ye You, 2003. "Consumer Risk Perceptions Toward Agricultural Biotechnology, Self‐Protection, and Food Demand: The Case of Milk in the United States," Risk Analysis, John Wiley & Sons, vol. 23(5), pages 973-984, October.
    11. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R., 1996. "Functional Forms and Economic Surplus Changes," 1996 Conference (40th), February 11-16, 1996, Melbourne, Australia 156588, Australian Agricultural and Resource Economics Society.
    12. Parker, Douglas D. & Zilberman, David, 1994. "The Distributional Effects Of Private Sector R&D Management: In-House And At Public Institutions," 1994 Annual Meeting, August 7-10, San Diego, California 271415, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Bittmann, Thomas & Holzer, Patrick & Loy, Jens-Peter, 2016. "Seasonal Cost Pass-Through In The German Milk Market," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244779, German Association of Agricultural Economists (GEWISOLA).
    14. Sukant Misra & Donna Grotegut & Kyle Clem, 1997. "Consumer attitude toward Recombinant Porcine Somatotropin," Agribusiness, John Wiley & Sons, Ltd., vol. 13(1), pages 11-20.
    15. Demont, Matty & Tollens, Eric, 2001. "Uncertainties Of Estimating The Welfare Effects Of Agricultural Biotechnology In The European Union," Working Papers 31828, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    16. Deana Grobe & Robin Douthitt & Lydia Zepeda, 1999. "A Model of Consumers' Risk Perceptions Toward Recombinant Bovine Growth Hormone (rbGH): The Impact of Risk Characteristics," Risk Analysis, John Wiley & Sons, vol. 19(4), pages 661-673, August.
    17. Hine, Susan E. & Loureiro, Maria L., 2002. "Understanding Consumers' Perceptions Toward Biotechnology And Labeling," 2002 Annual meeting, July 28-31, Long Beach, CA 19898, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Powers, Nicholas J., 1994. "Vertical Pricing Relationships for Lettuce," Technical Bulletins 156765, United States Department of Agriculture, Economic Research Service.
    19. Rembisz, Wlodzimierz, 1989. "The Anatomy Of 'Balanced' Growth In Agriculture," Staff Papers 13650, University of Minnesota, Department of Applied Economics.
    20. Jean C. Buzby & John T. Jones & John M. Love, 1994. "The farm-retail price spread: The case of postharvest pesticides in fresh grapefruit packinghouses," Agribusiness, John Wiley & Sons, Ltd., vol. 10(6), pages 521-528.

    More about this item

    Keywords

    Livestock Production/Industries; Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cudawp:128119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dacorus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.