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What Do Livestock Feeders Want from Seed Corn Companies?

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It is unlikely that livestock producers will be willing to pay premium prices for genetically modified feed corn. Three factors support this assertion. (1) Historically, livestock producers have demanded minimum-quality feed at the lowest price possible. They haven't been willing to pay extra for feed customized to specialized needs. (2) Feed containing synthetic additives will likely face strong price competition from traditional feed additive industries. (3) Establishing processing and transportation systems to handle genetically modified feed corn will incur significant startup costs, which will be passed along to customers. The authors provide data on the benefits and values of corn modifications to improve feed and discuss alternatives for commodity corn research.

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Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 00-bp29.

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Date of creation: Apr 2000
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Handle: RePEc:ias:fpaper:00-bp29

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