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CABI Book Chapter

Economic and social issues in agricultural biotechnology.

Book cover for Economic and social issues in agricultural biotechnology.

Description

This book presents 21 selected revised and edited papers from the 4th and 5th meetings of the International Consortium on Agricultural Biotechnology Research, held in Italy in 2000 and 2001. Topics covered include: intellectual property rights and technological exchange; public-private issues; genetic technologies and methods; developing country experiences; and international models. The book will...

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Chapter 18 (Page no: 325)

Efficiency effects of Bt cotton adoption by smallholders in Makhathini Flats, KwaZulu-Natal, South Africa.

The results of a survey of 100 smallholders in the Makhathini Flats region of KwaZulu-Natal, South Africa give cause for cautious optimism regarding the impact of Bt cotton. The farmers who adopted the Bt cotton variety in the 1998 and 1999 seasons benefited from the new technology, according to all the measures used. Average yield per hectare and per kilogram of seed was higher for adopters than for non-adopters. The increase in yields and reduction in chemical application costs outweighed the higher seed cost, so that gross margins were also considerably higher for adopters in the second season. This was a bad year, due to unusually heavy rainfall, and the Bt adopters suffered far less fall in yields than those who did not adopt. Both yields and gross margins are partial measures of efficiency, which fail to take account of major inputs such as labour. Thus, they are supplemented by deterministic and stochastic efficiency frontiers, which consider the efficiency with which all inputs are converted into outputs. These methods use only the more reliable input and output quantity data and avoid prices, which are less well recorded or simply non-existent. Both methods confirm the farm accounting results, showing that the Bt cotton adopters were considerably more efficient than those who used the non-Bt varieties. For 1998, the stochastic frontier results showed that the adopters averaged 88% efficiency, as compared with 66% for the non-adopters. In 1999, the equivalent figures were 74 and 48%. Similarly, the determinist frontier results for both years show that the adopters were over 62% efficient, while the non-adopters averaged only 46%. Finally, there is no evidence that the better-off farmers gained more than the less well off: indeed, income inequality was slightly reduced.

Other chapters from this book

Chapter: 1 (Page no: 1) From the Green Revolution to the Gene Revolution. Author(s): Evenson, R. E.
Chapter: 2 (Page no: 17) Conflicts in intellectual property rights of genetic resources: implications for agricultural biotechnology. Author(s): Butler, L. J.
Chapter: 3 (Page no: 31) Sui generis protection of plant varieties in Asian agriculture: a regional regime in the making? Author(s): Egelyng, H.
Chapter: 4 (Page no: 43) Intellectual property aspects of traditional agricultural knowledge. Author(s): Blakeney, M.
Chapter: 5 (Page no: 61) Farmers' rights and intellectual property rights - reconciling conflicting concepts. Author(s): Alker, D. Heidhues, F.
Chapter: 6 (Page no: 93) Universities, technology transfer and industrial R&D. Author(s): Graff, G. Heiman, A. Zilberman, D. Castillo, F. Parker, D.
Chapter: 7 (Page no: 119) Mergers and intellectual property in agricultural biotechnology. Author(s): Marco, A. C. Rausser, G. C.
Chapter: 8 (Page no: 137) Cost of conserving genetic resources at ex situ genebanks: an example of the ICARDA genebank. Author(s): Koo, B. Pardey, P. G. Valkoun, J. Wright, B. D.
Chapter: 9 (Page no: 159) Impact of terminator technologies in developing countries: a framework for economic analysis. Author(s): Srinivasan, C. S. Thirtle, C.
Chapter: 10 (Page no: 181) The impact of genetic use restriction technologies on developing countries: a forecast. Author(s): Goeschl, T. Swanson, T.
Chapter: 11 (Page no: 193) Managing proprietary technology in agricultural research. Author(s): Komen, J. Cohen, J. I. Falconi, C. Salazar, S.
Chapter: 12 (Page no: 203) Is marker-assisted selection cost-effective compared with conventional plant breeding methods? The case of quality protein Maize. Author(s): Dreher, K. Morris, M. Khairallah, M. Ribaut, J. M. Shivaji Pandey Ganesan Srinivasan
Chapter: 13 (Page no: 237) Can biotechnology reach the poor? The adequacy of information and seed delivery. Author(s): Tripp, R.
Chapter: 14 (Page no: 251) Value of engineered virus resistance in crop plants and technology cooperation with developing countries. Author(s): Flasinski, S. Aquino, V. M. Hautea, R. A. Kaniewski, W. K. Lam, N. D. Ong, C. A. Pillai, V. Romyanon, K.
Chapter: 15 (Page no: 269) Institutions and institutional capacity for biotechnology - a case study of India. Author(s): Rhoe, V. Shantharam, S. Babu, S.
Chapter: 16 (Page no: 287) Social and economic impact ex ante evaluation of Embrapa's biotechnology research products. Author(s): Avila, A. F. D. Quirino, T. R. Contini, E. Rech Filho, E. L.
Chapter: 17 (Page no: 309) Intellectual property protection and the international marketing of agricultural biotechnology: firm and host country impacts. Author(s): Goldsmith, P. Ramos, G. Steiger, C.
Chapter: 19 (Page no: 351) Income and employment effects of transgenic herbicide-resistant cassava in Colombia: a preliminary simulation. Author(s): Pachico, D. Escobar, Z. Rivas, L. Gottret, V. Perez, S.
Chapter: 20 (Page no: 359) Estimating the economic effects of GMOs: the importance of policy choices and preferences. Author(s): Anderson, K. Nielsen, C. P. Robinson, S.
Chapter: 21 (Page no: 393) Smallholders, transgenic varieties, and production efficiency: the case of cotton farmers in China. Author(s): Huang JiKun Hu RuiFa Rozelle, S. Qiao, F. B. Pray, C. E.

Chapter details

  • Author Affiliation
  • Department of Agricultural and Food Economics, University of Reading, Earley Gate, Whiteknights Road, Reading RG6 6AR, Berkshire, UK.
  • Year of Publication
  • 2002
  • ISBN
  • 9780851996189
  • Record Number
  • 20023100393