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Program for Biosafety Systems – http://pbs.ifpri.info/ “An Overview of Economic Impacts of Biotechnology” José Falck Zepeda Senior Research Fellow International Food Policy Research Institute – Program for Biosafety Systems (IFPRI - PBS)

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Program for Biosafety Systems ndash httppbsifpriinfo

ldquoAn Overview of Economic Impacts of Biotechnologyrdquo

Joseacute Falck ZepedaSenior Research Fellow

International Food Policy Research Institute ndash Program for Biosafety

Systems (IFPRI - PBS)

Program for Biosafety Systems ndash httppbsifpriinfo

Technology Assessment Scope

bull No-Tillage

bull Integrated Soil Fertility

Management

bull Organic Agriculture

bull Precision Agriculture

bull Crop Protection

bull Drip Irrigation

bull Sprinkler Irrigation

bull Water Harvesting

bull Drought Tolerance

bull Heat Tolerance

bull Nitrogen Use Efficiency

httpwwwifpriorgsitesdefaultfilespublication

soc76pdf

Program for Biosafety Systems ndash httppbsifpriinfo

Uganda maizendash Changes in yields area and production with a wetter and hotter

climate change scenario

Source IFPRIrsquos Agritech Toolbox httpagritechharvestchoiceorg

Program for Biosafety Systems ndash httppbsifpriinfo

Where are GM crops planted

27 countries in 1753 million hectares 2013

How does a producer benefit Insect resistance traits

The case of Bt cotton or maize

Producer Profit

Producer Surplus

Cost to Benefit

Additional

Cost of

Using the

Technology

Tech fee

US$80ha

0

+

-

Decrease

pesticide

application

cost

-Insecticide

-Machinery amp

Equipment

Yield

Reduction

in damage

-Timing

applications

-Reduced

damage bolls

Price change

due to increase

in supply

Additional

cost of

controlling

secondary

pests

Amenable to

IPM andor

controlled

easily

Labor

Labor

The case of fungal resistant bananas in Uganda

bull If approval delayed forego potential annual (social) benefits of +- US$200 million

bull Maximum total development costs cannot exceed US$108 million Otherwise GM banana is not a viable alternative

bull Even when considering precautionary principle concepts within the analysis adoption still benefits Uganda

Citation Kikulwe E J Wesseler and J Falck-Zepeda 2008 Introducing a Genetically Modified

Banana in Uganda Social Benefits Costs and Consumer Perceptions IFPRI Discussion Paper

767 Environment and Production Technology Division International Food Policy Research

Institute Washington D C USA

Copyright Kikulwe copy 2009

Case study Genetically Modified Cotton in Uganda An Ex-ante Evaluation

Daniela Horna Patricia Zambrano Jose Falck-Zepeda Theresa Sengooba

Guillaume Gruere Miriam Kyotalimye

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Program for Biosafety Systems ndash httppbsifpriinfo

Technology Assessment Scope

bull No-Tillage

bull Integrated Soil Fertility

Management

bull Organic Agriculture

bull Precision Agriculture

bull Crop Protection

bull Drip Irrigation

bull Sprinkler Irrigation

bull Water Harvesting

bull Drought Tolerance

bull Heat Tolerance

bull Nitrogen Use Efficiency

httpwwwifpriorgsitesdefaultfilespublication

soc76pdf

Program for Biosafety Systems ndash httppbsifpriinfo

Uganda maizendash Changes in yields area and production with a wetter and hotter

climate change scenario

Source IFPRIrsquos Agritech Toolbox httpagritechharvestchoiceorg

Program for Biosafety Systems ndash httppbsifpriinfo

Where are GM crops planted

27 countries in 1753 million hectares 2013

How does a producer benefit Insect resistance traits

The case of Bt cotton or maize

Producer Profit

Producer Surplus

Cost to Benefit

Additional

Cost of

Using the

Technology

Tech fee

US$80ha

0

+

-

Decrease

pesticide

application

cost

-Insecticide

-Machinery amp

Equipment

Yield

Reduction

in damage

-Timing

applications

-Reduced

damage bolls

Price change

due to increase

in supply

Additional

cost of

controlling

secondary

pests

Amenable to

IPM andor

controlled

easily

Labor

Labor

The case of fungal resistant bananas in Uganda

bull If approval delayed forego potential annual (social) benefits of +- US$200 million

bull Maximum total development costs cannot exceed US$108 million Otherwise GM banana is not a viable alternative

bull Even when considering precautionary principle concepts within the analysis adoption still benefits Uganda

Citation Kikulwe E J Wesseler and J Falck-Zepeda 2008 Introducing a Genetically Modified

Banana in Uganda Social Benefits Costs and Consumer Perceptions IFPRI Discussion Paper

767 Environment and Production Technology Division International Food Policy Research

Institute Washington D C USA

Copyright Kikulwe copy 2009

Case study Genetically Modified Cotton in Uganda An Ex-ante Evaluation

Daniela Horna Patricia Zambrano Jose Falck-Zepeda Theresa Sengooba

Guillaume Gruere Miriam Kyotalimye

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Program for Biosafety Systems ndash httppbsifpriinfo

Uganda maizendash Changes in yields area and production with a wetter and hotter

climate change scenario

Source IFPRIrsquos Agritech Toolbox httpagritechharvestchoiceorg

Program for Biosafety Systems ndash httppbsifpriinfo

Where are GM crops planted

27 countries in 1753 million hectares 2013

How does a producer benefit Insect resistance traits

The case of Bt cotton or maize

Producer Profit

Producer Surplus

Cost to Benefit

Additional

Cost of

Using the

Technology

Tech fee

US$80ha

0

+

-

Decrease

pesticide

application

cost

-Insecticide

-Machinery amp

Equipment

Yield

Reduction

in damage

-Timing

applications

-Reduced

damage bolls

Price change

due to increase

in supply

Additional

cost of

controlling

secondary

pests

Amenable to

IPM andor

controlled

easily

Labor

Labor

The case of fungal resistant bananas in Uganda

bull If approval delayed forego potential annual (social) benefits of +- US$200 million

bull Maximum total development costs cannot exceed US$108 million Otherwise GM banana is not a viable alternative

bull Even when considering precautionary principle concepts within the analysis adoption still benefits Uganda

Citation Kikulwe E J Wesseler and J Falck-Zepeda 2008 Introducing a Genetically Modified

Banana in Uganda Social Benefits Costs and Consumer Perceptions IFPRI Discussion Paper

767 Environment and Production Technology Division International Food Policy Research

Institute Washington D C USA

Copyright Kikulwe copy 2009

Case study Genetically Modified Cotton in Uganda An Ex-ante Evaluation

Daniela Horna Patricia Zambrano Jose Falck-Zepeda Theresa Sengooba

Guillaume Gruere Miriam Kyotalimye

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Program for Biosafety Systems ndash httppbsifpriinfo

Where are GM crops planted

27 countries in 1753 million hectares 2013

How does a producer benefit Insect resistance traits

The case of Bt cotton or maize

Producer Profit

Producer Surplus

Cost to Benefit

Additional

Cost of

Using the

Technology

Tech fee

US$80ha

0

+

-

Decrease

pesticide

application

cost

-Insecticide

-Machinery amp

Equipment

Yield

Reduction

in damage

-Timing

applications

-Reduced

damage bolls

Price change

due to increase

in supply

Additional

cost of

controlling

secondary

pests

Amenable to

IPM andor

controlled

easily

Labor

Labor

The case of fungal resistant bananas in Uganda

bull If approval delayed forego potential annual (social) benefits of +- US$200 million

bull Maximum total development costs cannot exceed US$108 million Otherwise GM banana is not a viable alternative

bull Even when considering precautionary principle concepts within the analysis adoption still benefits Uganda

Citation Kikulwe E J Wesseler and J Falck-Zepeda 2008 Introducing a Genetically Modified

Banana in Uganda Social Benefits Costs and Consumer Perceptions IFPRI Discussion Paper

767 Environment and Production Technology Division International Food Policy Research

Institute Washington D C USA

Copyright Kikulwe copy 2009

Case study Genetically Modified Cotton in Uganda An Ex-ante Evaluation

Daniela Horna Patricia Zambrano Jose Falck-Zepeda Theresa Sengooba

Guillaume Gruere Miriam Kyotalimye

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

How does a producer benefit Insect resistance traits

The case of Bt cotton or maize

Producer Profit

Producer Surplus

Cost to Benefit

Additional

Cost of

Using the

Technology

Tech fee

US$80ha

0

+

-

Decrease

pesticide

application

cost

-Insecticide

-Machinery amp

Equipment

Yield

Reduction

in damage

-Timing

applications

-Reduced

damage bolls

Price change

due to increase

in supply

Additional

cost of

controlling

secondary

pests

Amenable to

IPM andor

controlled

easily

Labor

Labor

The case of fungal resistant bananas in Uganda

bull If approval delayed forego potential annual (social) benefits of +- US$200 million

bull Maximum total development costs cannot exceed US$108 million Otherwise GM banana is not a viable alternative

bull Even when considering precautionary principle concepts within the analysis adoption still benefits Uganda

Citation Kikulwe E J Wesseler and J Falck-Zepeda 2008 Introducing a Genetically Modified

Banana in Uganda Social Benefits Costs and Consumer Perceptions IFPRI Discussion Paper

767 Environment and Production Technology Division International Food Policy Research

Institute Washington D C USA

Copyright Kikulwe copy 2009

Case study Genetically Modified Cotton in Uganda An Ex-ante Evaluation

Daniela Horna Patricia Zambrano Jose Falck-Zepeda Theresa Sengooba

Guillaume Gruere Miriam Kyotalimye

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

The case of fungal resistant bananas in Uganda

bull If approval delayed forego potential annual (social) benefits of +- US$200 million

bull Maximum total development costs cannot exceed US$108 million Otherwise GM banana is not a viable alternative

bull Even when considering precautionary principle concepts within the analysis adoption still benefits Uganda

Citation Kikulwe E J Wesseler and J Falck-Zepeda 2008 Introducing a Genetically Modified

Banana in Uganda Social Benefits Costs and Consumer Perceptions IFPRI Discussion Paper

767 Environment and Production Technology Division International Food Policy Research

Institute Washington D C USA

Copyright Kikulwe copy 2009

Case study Genetically Modified Cotton in Uganda An Ex-ante Evaluation

Daniela Horna Patricia Zambrano Jose Falck-Zepeda Theresa Sengooba

Guillaume Gruere Miriam Kyotalimye

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Case study Genetically Modified Cotton in Uganda An Ex-ante Evaluation

Daniela Horna Patricia Zambrano Jose Falck-Zepeda Theresa Sengooba

Guillaume Gruere Miriam Kyotalimye

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Cotton in Uganda

bull Importance of cotton

ndash Cotton produced by smallholders (250000 hhs)

ndash 3rd agricultural commodity exported but 2 -5 of total exports

ndash Traditional crop but some development in organic cotton production (with some issues)

bull Problems

ndash Very low yields (~400 KgHa) link

ndash Quality deteriorated despite 1 variety policy

ndash Production and yields slowly recuperating since 1979

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Potential for Genetically Engineered (GE) cotton in Uganda

bull Public interest to improve performance of cotton

ndash Confined trials approved in 2008

ndash CFT conducted in country

bull Goal provide stakeholders and policy makers with tools to analyze and make decisions about the approval and adoption of GM cotton in Uganda

bull Examine impacts on farm industry trade and institutions using farm surveys expert opinion simulations and qualitative examination of issues

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Impacts on Farm - Findings

Will cotton producers be better off with the adoption of GM seed

bull Results using IR and HT cotton varieties yield the highest returns but profitability does not increase dramatically

bull Yield variability is the main determinant of marginal benefits

bull Need to pay attention to ndash Investment in fertilizers and good

quality seedndash Seed prices

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Impact on Industry -Findings

What are the benefits and risks associated with the adoption of IR and HT cotton in Uganda

bull Uganda can gain from the introduction of GM cotton but rates of return estimated are not as high as other results

bull Low yields due to low input use have a critical role in explaining benefits generated by GM adoption

bull The probability of a negative rate of return could be as high as 38 in the case of paying full technology fee as paid in other countries including the USAndash Need to carefully think about seed price technology fee level

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Impacts on Trade - Findings

Would GM cotton affect tradeAre there possibilities for co-existence of organic and GM cotton

bull GM cotton is not a risk to exports of conventional cotton but potentially to organic exports

bull Coexistence of both systems is possible if seed mixing is avoided

bull Need to discuss seed marketing strategies before introduction of GM cotton

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Impact on Institutions - Findings

How has and will the current institutional setting affect the approval and adoption of GM cotton

bull Despite some bottlenecks the regulatory process is leading to the commercial approval of GM cotton

bull Need to look beyond the regulatory process and focus on how to facilitate adoption as part of broader revitalization approach to the sectorndash technology delivery multiplicationndash extensionndash credit

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Conclusions

bull GE cotton ndash Can be a risk management tool to reduce downside risk for

farmersndash has the potential to improve cotton productivity

bull But there is a need to facilitate farmersrsquo access to complementary inputs (such as fertilizer herbicides) and to seed

bull This is an opportunity for policy makers need to discuss deployment and sector wide revitalization strategiesndash Technology delivery ndash Technology feendash Seed marketing strategies

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

What do we know from the economic impact assessment literature to date

bull A review of 187 peer reviewed studies

bull Examined studies with a focus onndash Farmers household

and community

ndash Industry and markets

ndash Consumers

ndash Trade

Source Smale M Zambrano P Gruegravere G Falck-Zepeda J Matuschke I Horna D Nagarajan La Yerramareddy Ia Jones H 2009

Measuring the economic impacts of transgenic crops in developing agriculture during the first decade Approaches findings and future directions

(Food policy review 10) Washington DC International Food Policy Research Institute (IFPRI)

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Food Policy Review 10 conclusions

bull On average GE crops have a higher economic performance mdash but averages do not reflect existing variability

bull Too few traits too few casesauthorsmdashgeneralizations should not be drawn yet

These conclusions are no different than those for most technologies released to datehellip

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

A meta-analysis paper by Areal Riesgo and Rodriguez-Cerezo (2012)

ldquoGM crops perform better than their conventional counterparts in agronomic and economic (gross margin) termsrdquo

ldquoGM crops tend to perform better in developing countries than in developed countries with Bt cotton being the most profitable crop grownrdquo

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Summary of benefitsSystematic reviews and formal meta-analysis measuring the performance of GE crops including Racovita et al 2015 Kluumlmperand Qaim 2014 Mannion and Morse 2013 Areal Riesgo amp Rodriguez-Cerezo 2012 Finger et al 2011 Qaim 2009 Smale et al 2009 Raney 2006 Smale et al 2009 Sexton amp Zilberman 2011 Tripp 2009hellip have consistently shown

bull Reductions in yield damage from insects and perhaps weeds

bull Reduced pesticide applications for target pests

bull Decrease in management time and flexibility

bull Positive gross (in some cases net) margins from the adoption of such crops

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Important to contextualize these results

bull Results do not imply that every single farmer or groups of farmers (adopting or not) gained from the introduction of GE crops

bull Data and method limitations of existing studies

bull Research focuses significantly on the assessments of Bt cotton grown in China and Indiahellipbut is changing

bull Important to develop rapid assessments of potential technologies at the country level done in collaboration with national teams

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Five takeaways from the National Academies of Sciences GE crops report1 The best evidence suggests current GM

crops are just as safe to eat as regular crops

2 Current GM crops have proven valuable to many farmers mdash but context matters

3 Beware of simplistic arguments over whether GM crops can feed the worldldquo

4 Some GM crops have had positive environmental effects mdash but watch out for superweedsldquo

5 Genetic engineering is changing radically mdashand regulations need to adjust

Source

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Concluding comments

bull Biotechnology and GE crops have had and may have an important role in meeting the present and future challenges of food production ndash Biotechnology and GE Crops are still only technologies

ndash Similarities and differences with other technologies

bull Current and potential benefits are real and cannot be ignored

bull Public sector developments in developing countries

bull Additional cropstraits of interest whose limitations can probably be only addressed through biotechnology means will be available if we manage to resolve institutional and regulatory issues

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck

Joseacute Benjamin Falck-Zepeda PhDSenior Research Fellow

IFPRI 2033 K Street NW

Washington DC 20006-1002USA

jfalck-zepedacgiarorgBrief biopubs

httpwwwifpriorgstaffprofilejose-falck-zepeda

Blog httpsocioeconomicbiosafetywordpresscom

Follow me on Twitter josefalck