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Scale Neutrality Of Bovine Somatotropin: Ex Ante Evidence From The Southeast

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  • Kinnucan, Henry W.
  • Hatch, L. Upton
  • Molnar, Joseph J.
  • Venkateswaran, Meenakshi

Abstract

Bovine somatotropin (BST), a new technology capable of enhancing a cow's ability to produce milk by 7-23 percent, is expected to be available for commercial use soon. Ex ante survey procedures are used to determine the potential effect of BST on the size distribution of dairy farms in the Southeast. Results of logit analysis indicate a positive link between farm size and (1) farmers' knowledge of BST and (2) intentions to adopt early, suggesting BST will not be scale neutral. An estimated "price elasticity" of -1.8 to -2.1 indicates an elastic demand for the input. Price, therefore, may be an effective instrument for attenuating the scale bias.

Suggested Citation

  • Kinnucan, Henry W. & Hatch, L. Upton & Molnar, Joseph J. & Venkateswaran, Meenakshi, 1990. "Scale Neutrality Of Bovine Somatotropin: Ex Ante Evidence From The Southeast," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(02), December.
  • Handle: RePEc:ags:sojoae:29997
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    References listed on IDEAS

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    1. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-328, July.
    2. Milligan, Robert & Lesser, William H. & Magrath, William B. & Tauer, Loren & Bauman, Dale, 1985. "Biotechnology and Dairy Industry: Production costs, Commercial Potential, and the Economic Impact of the Bovine Growth Hormone," Research Bulletins 183730, Cornell University, Department of Applied Economics and Management.
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    Cited by:

    1. Zdenko Stefanides & Loren W. Tauer, 1999. "The Empirical Impact of Bovine Somatotropin on a Group of New York Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 95-102.
    2. El-Osta, Hisham S. & Morehart, Mitchell J., 1999. "Technology Adoption Decisions In Dairy Production And The Role Of Herd Expansion," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(1), April.
    3. Tauer, Loren W. & Kaiser, Harry M., 1990. "Optimal Agricultural Policy with Biotechnology: Bovine Somatotropin and the Dairy Sector," Staff Papers 121536, Cornell University, Department of Applied Economics and Management.
    4. 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(01), July.
    5. Gillespie, Jeffrey M. & Lewis, Darius, 2008. "Processor Willingness to Adopt a Crawfish Peeling Machine: An Application of Technology Adoption under Uncertainty," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.
    6. McBride, William D. & Short, Sara D. & El-Osta, Hisham S., 2002. "Production And Financial Impacts Of The Adoption Of Bovine Somatotropin On U.S. Dairy Farms," 2002 Annual meeting, July 28-31, Long Beach, CA 19908, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    Livestock Production/Industries;

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