Impact of Recombinant Bovine Somatotropin on Dairy Farm Cost of Production: Evidence from Multiyear Data
Abstract
New York dairy farm data over the years 1994-2002 were used
to estimate the impact of recombinant bovine somatotropin
(rbST) use on the cost of producing a hundredweight of milk.
Both fixed and random effects models were estimated. Self-selection
bias in the use of rbST was not found to exist. Results
imply that the use of rbST on these dairy farms reduces the net
cost of producing a hundredweight of milk somewhere between
$0.23 and $0.52. For 20,000 pound average per-cow production,
this would be a net cost reduction of $46-104 per cow.
Citation
AgBioForum, 9(2): 79-83.