The Cost of Biotechnology Regulation in the Philippines

This paper identifies direct costs and opportunity costs of bio-safety regulation for four transgenic products in the Philippines: Bt eggplant, Bt rice, ringspot-virus resistant papaya, and virus resistant tomatoes. It finds that direct regulatory costs while significant, are generally smaller than the research costs for technology development. However, both research and regulatory costs are overshadowed by even a relatively brief delay in product release, which may occur due to unexpected regulatory delays.Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies,

THE DISTRIBUTION OF BENEFITS RESULTING FROM BIOTECHNOLOGY ADOPTION

The purposes of this study are two-fold: (1) to estimate the size of total benefits arising from the adoption of agricultural biotechnology, and (2) to measure the distribution of total benefits among key stakeholders along the production and marketing chain, including U.S. farmers, gene developers, germplasm suppliers, U.S. consumers, and the producers and consumers in the rest of the world. This study focuses on the benefits that resulted from the adoption of herbicide-tolerant soybeans as well as insect-resistant (Bt) and herbicide-tolerant cotton in 1997. In this analysis, various data sources are examined for measuring the farm-level effects of adopting biotechnology and the resulting benefit estimates are compared. The size and distribution of the benefits arising from the adoption of biotech crops vary significantly, depending on the farm-level effects obtained from the various data sources and the supply and demand elasticity assumptions for the domestic and world markets. Estimates of the benefits derived from farm-level impacts that isolate the effects biotechnology appear to be the most plauible. This study does not lend support to the popular belief that U.S. farmers received at least one-half, or as much as two-thirds, of the total benefits realized from the adoption of biotechnology. In contrast, the results of this study indicate that in 1997, U.S. farmers realized considerably less than half of the total benefits. The bulk of the benefits appear to have gone to the gene supplier, seed companies, U.S. consumers, and the rest of the world.Research and Development/Tech Change/Emerging Technologies,

Biofuels and Rural Economic Development in Latin America and the Caribbean

Biofuel expansion is seen as a way to reduce dependence on fossil fuels, as an alternative energy source for transportation and other uses, as a way to reduce Green House Gases, and as way to revitalize the agricultural sector. Very little discussions have been focused on Latin America, except for Brazil. Potential negative impacts re-enforce the need of performing more in depth analysis of the potential impact of biofuels expansion in Latin America and the Caribbean (LAC). Paper estimates biofuels production potential based on current production situation and develops a forward-looking analysis of the long-term impact of biofuels expansion in Latin America and its effects on prices, trade, food security, malnutrition and other indicators using the IMPACT-WATER model developed by IFPRI. The analysis conducted for this paper of potential crops in the region show that from a technical and productivity standpoint in which to base biofuels expansion continues to be sugarcane and palm oil trees. Most countries in Latin America will not have a production constraint in terms of meeting existing and projected mandatory blends requirements. However, if the goal is to obtain energy independence, this result only holds for a few countries, with obvious food security implications as countries dedicate higher shares of their agricultural land to biofuels expansion. Our analysis, and those made in other studies, show that biofuels expansion is not likely to have a binding land production constraint in Latin America, with a few exceptions. The forward-looking estimations from the IMPACT-WATER model show that Brazil will continue to be the major player in the ethanol market. Brazil will expand its ethanol exports to meet growing demand in other countries including some in Latin America. Other countries such as Argentina and Colombia will likely continue their biofuels expansion plans, although our estimate show that they will not likely meet their demand based on current production potential. The IMPACT-WATER simulations also show that biofuels impacts on food security and malnutrition will likely happen in those countries where the feedstock used for biofuels production is a critical component of a major share of the population, other things equal. An example of this potential is Mexico and most of the Central America region, where a high proportion of the diet is composed of maize. The extent to which biofuels efforts can contribute towards addressing or affecting all broader contextual issues depend on a series of strategic determinants of impact success, ranging from the characteristics of installed capacity and industrial organization and coordination to whether any nascent market for biofuels will be economically sustainable and financially viable without continuous government support or interventions.Community/Rural/Urban Development, Resource /Energy Economics and Policy,

The Cost of Compliance with Biosafety Regulations in Indonesia and The Philippines

Resource /Energy Economics and Policy,

Vegetable Production and Pesticide Use in Ghana: Would GM Varieties Have an Impact at the Farm Level?

The objective of this study is to evaluate pesticide use as an important factor affecting potential adoption and farm level impact of genetically modified (GM) vegetable varieties in Ghana. Tomato is the most consumed vegetable and a food security crop. Cabbage is a vegetable of growing importance but limited cultivation and is produced in urban areas. Garden egg is a native African crop of wide consumption and importance for rural economies. Farm level information was collected in randomly selected sites in southern and central regions of Ghana. Partial budget analysis shows that investments in pesticides are rather low, especially for tomato and garden egg. Analysis of production using an abatement framework shows that insecticide amounts are significant in determining cabbage output levels only. Rate of returns of GM seeds however can still be high. GM varieties would need to show not only a high abatement rate and a high yield potential but mainly an affordable price, to reduce total costs and induce adoption.Farm, Genetically Modified, Ghana, Tomato, Agricultural and Food Policy, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Health Economics and Policy, International Relations/Trade, Marketing, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,

Insecticide Use on Vegetables in Ghana: Would GM Seed Benefit Farmers?

Tomato, cabbage and garden egg (African eggplant, or Solanum Aethiopicum) are important crops for small-scale farmers and migrants in the rural and peri-urban areas of Ghana. Genetic modification (GM) has the potential to alleviate poverty through combating yield losses from pests and diseases in these crops, while reducing health risks from application of hazardous chemicals. This ex-ante study uses farm survey data to gauge the potential for adoption of genetically-engineered varieties, estimate the potential impact of adoption on farm profits, and highlight economic differences among the three crops. Farmer's expenditures on insecticides are below the economic optimum in all three crops, and the estimated function for damage abatement shows that insecticide amounts are significant determinants of cabbage yields only. Nonetheless, yield losses from the pests and diseases affect insecticide use. Stochastic budget analysis also indicates a higher rate of return to vegetable production with the use of resistant seeds relative to status quo, even considering the technology transfer fee for GM seeds. Non-insecticide users could accrue higher marginal benefits than current insecticide users. Comparing among vegetable crops with distinct economic characteristics provides a wider perspective on the potential impact of GM technology. Until now, GM eggplant is the only vegetable crop that has been analyzed in the peer-reviewed, applied economics literature. This is the first analysis that includes African eggplant.Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,

Strategic environmental assessment: assessing the environmental impact of biotechnology

Poverty reduction, Agricultural research, Environmental protection, Genetically modified organisms, Crops, Agricultural biotechnology Research, Investments, Strategic Environmental Assessment,

Genetically modified maize : less drudgery for her, more maize for him? Evidence from smallholder maize farmers in South Africa

Genetically modified (GM) crop technologies have made great strides since its first introduction in 1996. Although there is an extensive and growing body of literature on the economic impact of the adoption of GM crops in both developing and developed economies, there is only scant evidence that the technology has had any specific and distinguishable impact among female and male farmers. In economies where female farmers and female household members have a significant and often differentiated role in agriculture production, it is crucial to be able to answer this question. This paper presents quantitative and qualitative results from a study of the gender-specific adoption and performance effects of insect resistant (Bt) and herbicide-tolerant (HT) maize produced by smallholder farmers in the Kwa Zulu Natal province in South Africa. The findings indicate that women farmers value the labor-saving benefit of HT maize alongside the stacked varieties which offer both insect control and labor saving. Higher yields are the main reason behind male adoption, while female farmers tend to favor other aspects like taste, quality, and the ease of farming herbicide-tolerant (HT) crops. Women farmers (and also children) saved significant time because less weeding is required, an activity that has traditionally been the responsibility of female farmers. The newer stacked varieties were preferred by both male and female farmers and seemed to be in high demand by both groups. However, lack of GM seed availability in the region and poor market access were possible limitations to the adoption and spread of the technology.The United States Department of State, the Rockefeller Foundation and ESRC/DFID.www.elsevier.com/locate/worlddevam2016Agricultural Economics, Extension and Rural Developmen

Benefits from the adoption of genetically engineered innovations in the Ugandan banana and cassava sectors: an ex ante analysis

The Government of Uganda has implemented programs and policies to improve the agricultural sector’s recent underperformance. Uganda’s two main food security crops, bananas and cassava, have been critically affected by two diseases: Banana Xanthomonas Wilt (BXW) and Cassava Brown Streak Disease (CBSD). The effectiveness of agronomic and cultural practices to control these diseases has been limited, requiring better alternatives. The Ugandan R&D sector in collaboration with international partners have developed genetically engineered innovations that can control both diseases. To examine the potential benefits to consumers and producers from the adoption of genetically engineered banana and cassava with resistance to BXW and CBSD, we use a set of economic impact assessment methods. These include an economic surplus model implemented via IFPRI’s DREAMpy framework, a real options model and a limited gender assessment. Results from the economic surplus approach suggest that the adoption of both technologies can benefit Uganda. These results were confirmed for the case of bananas and partially for the case of cassava using the real options and the gender assessment performed. Results from this assessment are predicated on Uganda maintaining an enabling environment that will ensure the deployment and use of both innovations. Looking forward, continuing to improve enabling environment for innovation in Uganda will require addressing current R&D, regulatory, technology deployment and product stewardship processes constraints

To reach the poor: results from the ISNAR-IFPRI Next Harvest study on genetically modified crops, public research, and policy implications

"Local farming communities throughout the world face productivity constraints, environmental concerns, and diverse nutritional needs. Developing countries address these challenges in a number of ways. One way is public research that produces genetically modified (GM) crops and recognize biotechnology as a part of the solution. To reach these communities, GM crops, after receiving biosafety agreement, must be approved for evaluation under local conditions. However, gaps between approvals in the developed and developing world grow larger, as the process of advancing GM crops in developing countries becomes increasingly difficult. In several countries, only insect resistant cotton has successfully moved from small, confined experimental trials to larger, open trials and to farms. By far, most GM crop approvals have been for commercial products that perform well under tropical conditions. However, complete information on public GM crop research in developing countries has not been assessed. “Will policies and research institutions in the developing world stimulate the safe use of publicly funded GM food crops?” The relatively few GM crops approved from public research, coupled with growing regulatory, biosafety capacity, trade, and political concerns, argue to the contrary. To tackle this issue, we identified and analyzed public research pipelines for GM crops among 16 developing countries and transition economies. Respondents reported 209 genetic transformation events for 46 different crops at the time when the survey was conducted. The pipelines demonstrate scientific progress among publicly funded crop research institutes in participating countries. Information and findings are presented for GM crops nearing final stages of selection. Additional details are provided for the types of genes and traits used, the breadth of genetic resources documented, implications for regulation, and the type of research partnerships employed. Regulations, GM crop approvals, choice of transgene, and policy implications are discussed as they affect this research. Based on these findings, recommendations are presented that would help sustain and increase efficiency of publicly supported research while meeting biosafety requirements. To do so, the study examines results concerning investments and choices made in research, capacity, and policy development for biotechnology. These indicate the risk and potential for GM technologies in developing countries. Policy makers, those funding biotechnology, and other stakeholders can use this information to prioritize investments, consider product advancement, and assess relative magnitude of potential risks, and benefits." Authors' Abstract