ABSTRACT
This chapter begins with a concern regarding the effect that two new biotechnologies, recombinant bovine somatotropin (rbST) and multiple ovulation and embryo transfers (MOET), might have on world dairy markets. It discusses the probable effects of rbST and of MOET on dairy production in the developed and developing countries. The chapter presents a broad overview of trends in the production, consumption and international trade in milk. It considers the implications of the projected supply-demand balances. The effects of rbST and MOET on developed country comparative advantage in milk production will depend on the degree to which unit costs are reduced in developed countries relative to those in developing countries. rbST is likely to improve the international competitive position of developed country milk producers both in the short and long-run. rbST adoption should occur more rapidly in developed countries than in less developed countries, and it should cause a larger reduction in unit costs once adoption has reached its limit.
