Can Bt Technology Reduce Poverty Among African Cotton Growers? An Ex Ante Analysis of the Private and Social Profitability of Bt Cotton Seed in Mozambique
This paper presents an ex ante analysis of the private and social profitability of the introduction of Bt cotton for a major cotton producing area of northern Mozambique. Cotton is especially relevant to rural poverty reduction because smallholders often have few alternative cash earning activities, and yields are among the lowest in Africa. Multivariate regression is used to quantify the relationship between pest control and yield loss at farm level as a basis for estimating the expected yield gain from the introduction of Bt cotton. Partial budget analysis of technical packages with and without Bt cotton seed reveals a strong divergence between private (negative) and social (positive) profitability. The Mozambique case indicates that effective bio-safety and legal frameworks may be a necessary but not sufficient condition for Bt cotton technology adoption and poverty reduction. Policy changes to align private and social profitability of cotton production with Bt seed, as well as complementary improvements in crop management, especially timely planting and weed control, are also necessary for Bt technology to change the fortunes of Mozambican cotton growers. With improved policy and technology in place the adoption of Bt cotton varieties could result in a sizeable reduction in poverty as measured by the predicted change in squared poverty gap.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kym Anderson & Ernesto Valenzuela, 2007.
"The World Trade Organisation's Doha Cotton Initiative: A Tale of Two Issues,"
The World Economy,
Wiley Blackwell, vol. 30(8), pages 1281-1304, 08.
- Anderson, Kym & Valenzuela, Ernesto, 2006. "The World Trade Organization's Doha cotton initiative : a tale of two issues," Policy Research Working Paper Series 3918, The World Bank.
- Nicholas Minot & Lisa Daniels, 2005.
"Impact of global cotton markets on rural poverty in Benin,"
International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
- Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MTID discussion papers 48, International Food Policy Research Institute (IFPRI).
- Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MSSD discussion papers 48, International Food Policy Research Institute (IFPRI).
- Eicher, Carl K. & Maredia, Karim & Sithole-Niang, Idah, 2006. "Crop biotechnology and the African farmer," Food Policy, Elsevier, vol. 31(6), pages 504-527, December.
- David Tschirley & Colin Poulton & Patrick Labaste, 2009. "Organization and Performance of Cotton Sectors in Africa : Learning from Reform Experience," World Bank Publications, The World Bank, number 2604, July.
- Smale, Melinda & Zambrano, Patricia & Falck-Zepeda, José & Gruère, Guillaume, 2006. "Parables: applied economics literature about the impact of genetically engineered crop varieties in developing economies," EPTD discussion papers 158, International Food Policy Research Institute (IFPRI).
- Bhavani Shankar & Colin Thirtle, 2005. "Pesticide Productivity and Transgenic Cotton Technology: The South African Smallholder Case," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 97-116.
- Falck-Zepeda, Jose & Horna, Daniela & Smale, Melinda, 2007. "The economic impact and the distribution of benefits and risk from the adoption of insect resistant (Bt) cotton in West Africa:," IFPRI discussion papers 718, International Food Policy Research Institute (IFPRI).
- John Baffes, 2005. "The "Cotton Problem"," World Bank Research Observer, World Bank Group, vol. 20(1), pages 109-144.
- Boughton, Duncan & Tschirley, David L. & Zulu, Ballard & Ofico, Afonso Osorio & de Marrule, Higino Francisco, 2003.
"Cotton Sector Policies And Performance In Sub-Saharan Africa:Lessons Behind The Numbers In Mozambique And Zambia,"
2003 Annual Meeting, August 16-22, 2003, Durban, South Africa
25855, International Association of Agricultural Economists.
- Boughton, Duncan & Tschirley, David L. & de Marrule, Higino Francisco & Osorio, Afonso & Zulu, Ballard, 2002. "Cotton Sector Policies and Performance in Sub-Saharan Africa: Lessons Behind the Numbers in Mozambique and Zambia," Food Security Collaborative Policy Briefs 55233, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Kym Anderson & Ernesto Valenzuela & Lee Ann Jackson, 2008.
"Recent and Prospective Adoption of Genetically Modified Cotton: A Global Computable General Equilibrium Analysis of Economic Impacts,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 56, pages 265-296.
- Anderson, Kym & Valenzuela, Ernesto & Jackson, Lee Ann, 2006. "Recent and prospective adoption of genetically modified cotton : a global computable general equilibrium analysis of economic impacts," Policy Research Working Paper Series 3917, The World Bank.
- Maumbe, Blessing M. & Swinton, Scott M., 2003. "Hidden health costs of pesticide use in Zimbabwe's smallholder cotton growers," Social Science & Medicine, Elsevier, vol. 57(9), pages 1559-1571, November.
- Walker, Thomas S. & Pitoro, Raul & Tomo, Alda & Sitoe, Isabel & Salencia, Celestino & Mahanzule, Rosalina & Donovan, Cynthia & Mazuze, Feliciano M., 2006. "Priority Setting for Public-Sector Agricultural Research in Mozambique with the National Agricultural Survey Data," Food Security Collaborative Working Papers 56113, Michigan State University, Department of Agricultural, Food, and Resource Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51633. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.