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The biotechnology revolution received a shot in the arm Friday when the Food and Drug Administration approved for commercial use a controversial genetically engineered hormone that increases milk production in dairy cows.

But two big questions loom for manufacturers of recombinant bovine somatotropin:

– Will consumers buy milk and other dairy products produced from cows that receive injections of synthetic BST?

– Will dairy farmers use BST to increase milk output?

Recent surveys have produced a resounding “no” to both questions, with health concerns raised by consumers while farmers cited cost and milk price problems.

In any case, dairy products containing the genetically engineered version of the growth hormone, which occurs naturally in milk, won’t be on grocery shelves right away. A 90-day moratorium on the substance was imposed by Congress last summer as part of the budget package.

The moratorium will give the Office of Management and Budget time to study the possible reaction by consumers and the impact of BST’s use on the dairy economy.

Approval by the FDA was specifically for the product of Monsanto Co., which will be marketed under the trade name Posilac. Three other manufacturers have similar BST products under various stages of evaluation by the FDA.

“This has been one of the most extensively studied animal drug products to be reviewed by the agency,” said David Kessler, FDA commissioner. “The public can be confident that milk and meat from BST-treated cows is safe to consume.”

Labeling of food products containing BST won’t be required by the FDA because it concluded it has no legal authority to do so, but food companies may voluntarily label their products if, the FDA said, the information is truthful and not misleading.

“There is virtually no difference in milk from treated and untreated cows,” Kessler said. “We have looked carefully at every single question raised, and we are confident this product is safe for consumers, for cows and for the environment.”

The FDA had found evidence that BST causes a slightly increased incidence of mastitis, an infection of a cow’s udder. This raised concerns that antibiotic treatment could lead to increased residues in milk, but the FDA concluded that adequate testing safeguards will prevent unsafe levels of antibiotic residues from entering the milk supply.

However, the agency said Monsanto has agreed to conduct a monitoring program that includes:

– A two-year tracing system of milk production and drug residues in 21 top dairy states that will compare the amount of milk discarded after BST is marketed to the amount discarded prior to approval.

– A 12-month comparison of the proportion of milk discarded because of positive drug tests between BST-treated and untreated herds.

– A reporting system to monitor all BST use and follow up on all complaints.

– The use of the product in 24 commercial dairy herds will be specifically monitored for mastitis, animal drug use and the resulting loss of milk.

“American farmers have traditionally sought innovative ways to improve production efficiency,” said Walter Hobgood, vice president of Monsanto’s animal sciences division. “Those dairy farmers who use supplemental BST in their herds will be producing the same wholesome milk, but they will be doing it more efficiently.”

Recent surveys in Wisconsin, a leading dairy state, indicate a large majority of farmers won’t use the product.

A random sample of 500 farmers taken by the University of Wisconsin department of agricultural journalism last summer found that about 90 percent opposed legalization of BST and 65 percent said they wouldn’t use it even two years after appoval.

They cited worries that BST would reduce consumer consumption of dairy products and cause health problems in cattle and humans. Concerns about increasing the milk surplus and forcing small farmers out of business also were mentioned.

A survey of 900 farm families by University of Wisconsin agricultural economist Bradford Barham showed only 11 percent were likely to use BST. Younger farmers were more likely to use the product, and of those with large herds-more than 100 cows-37 percent expected to use BST compared with 7 percent for those with fewer than 40 cows.