Impact of Bovine Somatotropin on U.S. Dairy Markets under Alternative Policy Options

Harry Kaiser and Loren W. Tauer

Review of Agricultural Economics, 1989, vol. 11, issue 1, 59-73

Abstract: The annual market impacts of bovine Somatotropin on the U.S. dairy sector are simulated under four dairy policy scenarios for 1988–2000. The scenarios include freezing the support price at its predicted 1990 level ($10.60) for 1990–2000, adjusting the support price annually to keep annual government purchases of dairy products between 2.5 and 5 billion pounds, using annual cow removals to maintain support program purchases under 5 billion pounds, and using a combination of support price changes and annual cow removals. Annual equilibrium values for supply, demand and prices are generated for the farm sector and fluid and manufactured dairy product retail markets. Estimates of government purchases of dairy products and government costs for each year are reported. The results suggest that a combination of support price changes and cow removals is the most attractive policy in terms of government costs and producer profits.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10.1093/aepp/11.1.59 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:revage:v:11:y:1989:i:1:p:59-73.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

More articles in Review of Agricultural Economics from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ( this e-mail address is bad, please contact ) and Christopher F. Baum ().