Introduction

The development of biotechnology has offered the potential for the emergence of new technologies that may further reduce the cost of milk production. This chapter analyzes the expected profitability, use, and effect of two new biotechnologies. Recombinant bovine somatotropin (rbST) and multiple ovulation and embryo transfers (MOET) are among the first two major biotechnologies created. That fact alone has gained them considerable attention. That they are used to produce milk, perhaps the most basic and one of the most widespread foods consumed by man, has heightened interest in their effects. The two biotechnologies have potential to substantially affect the world's supply of milk. The development and adoption of rbST and MOET could achieve a substantial rightward shift in the supply curve of milk, permitting the growth of global milk supply to keep up with rising demand and even sustain a long term decline in consumer prices. The chapter also presents an overview of the key concepts discussed in this book.