Segmenting the Milk Market into bST-Produced and Non-bST-Produced Milk

Loren W. Tauer

No 121326, Staff Papers from Cornell University, Department of Applied Economics and Management

Abstract: This paper discusses the value to milk producers and consumers of segmenting the milk market into 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 b~T 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.

Keywords: Livestock Production/Industries; Marketing (search for similar items in EconPapers)
Pages: 24
Date: 1993-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/121326/files/Cornell%20SP%2093-02.pdf (application/pdf)

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:ags:cudasp:121326

DOI: 10.22004/ag.econ.121326

Access Statistics for this paper

More papers in Staff Papers from Cornell University, Department of Applied Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().