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Scale Neutrality of Bovine Somatotropin: Ex Ante Evidence from the Southeast

Author

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  • Kinnucan, Henry
  • Hatch, 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 & Hatch, Upton & Molnar, Joseph J. & Venkateswaran, Meenakshi, 1990. "Scale Neutrality of Bovine Somatotropin: Ex Ante Evidence from the Southeast," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(2), pages 1-12, December.
    • Handle: RePEc:cup:jagaec:v:22:y:1990:i:02:p:1-12_00
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    1. 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), pages 1-15, July.
    2. Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
    3. Beatrice W. Muriithi & Nancy G. Gathogo & Gracious M. Diiro & Samira A. Mohamed & Sunday Ekesi, 2020. "Potential Adoption of Integrated Pest Management Strategy for Suppression of Mango Fruit Flies in East Africa: An Ex Ante and Ex Post Analysis in Ethiopia and Kenya," Agriculture, MDPI, vol. 10(7), pages 1-23, July.
    4. 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.
    5. Gillespie, Jeffrey & Lewis, Darius, 2008. "Processor Willingness to Adopt a Crawfish Peeling Machine: An Application of Technology Adoption under Uncertainty," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 369-383, April.
    6. 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(01), pages 1-12, April.
    7. 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).
    8. 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.

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