This study focuses on the nature of Texas consumer perception and willingness to purchase milk produced using recombinant bovine somatotropin (rBST). Future, the possibility of market segmentation is analyzed by estimating the price sensitivity of consumer demand for conventionally produced milk versus rBST-produced milk. Results show that the price elasticities of demand for the two types of milk are different, indicating potential to develop niche markets for both rBST-produced and conventionally produced milk in Texas.