Market Implications of the Introduction of Products from Cloned Animals and Their Offspring into the Food Supply

On January 15, 2008, the FDA issued its final risk assessment on the safety of meat and milk from healthy cloned animals and their offspring, finding that the meat and milk from cattle, swine, and goat clones pose no safety concerns and that these products are no different than food from traditionally bred animals. Despite these safety assurances, the decision to lift the voluntary moratorium on the introduction of cloned animal products into the food supply could trigger the development of differentiated markets for cloned and non-cloned products. Such a differentiation would entail costs, including those for segregation/identity preservation, traceability, labeling, and marketing. The net benefits of introducing products from cloned animals depend on the extent of these costs. This study will examine the potential costs of market differentiation for meat and milk from cloned and non-cloned cattle and swine. The analysis will consider the major factors influencing the extent of market differentiation and the resulting costs. The analysis will also consider the distribution of costs and benefits arising from the introduction of cloned animal products into the food supply.