Monsanto's Positive Spin on Continuing Production Problems with rBGH

Dairy Update ­ Monsanto To Continue BST Restrictions Into 2005
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10/18/2004

Dairy Update ­ Monsanto To Continue BST Restrictions Into 2005

Monsanto has indicated that limited supplies of bovine somatotropin (BST)
will continue ³well into 2005, with incremental increases occurring over
time,² and some allocations will remain in place. For most of 2004,
established users of BST were limited to only half their normal purchases,
and no new customers were accepted. On December 1, 2004, allocations will
increase to at least 70 percent of historical purchases.

The delay of full BST availability will dampen recovery in milk per cow
during the first half of 2005. However, the prospects for substantial
recovery in gains in milk per cow remain generally favorable. Some
additional BST will be available, relative milk and concentrate feed prices
will encourage heavier feeding, forage supplies will be ample even if
quality is somewhat mixed, more normal culling may resume if heifer supplies
recover, and milk per cow has already shown recovery from the very weak
levels of the first half of 2004. Good weather for cows undoubtedly boosted
summer milk per cow, but some of the economic factors probably also made
significant contributions.

Source: ERS/USDA

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