20 May 2009
Source:American Agricultural Economics Association conference paper
Author:Genti Kostandini et al.

This paper from researchers at U.S. universities and the International Food Policy Research Institute (IFPRI) examines what financial benefits might be expected from the introduction of drought tolerant genetically modified (GM) maize, rice, and wheat in eight developing countries (Bangladesh, Ethiopia, India, Indonesia, Kenya, Nigeria, the Philippines, and South Africa.) The paper estimates that the benefits would be "substantial." The framework employed uses country-specific agroecological-drought risk zones and considers both yield increases and yield variance reductions when estimating producer and consumer benefits from GM research. While GM research for drought resistance is still in its infancy initial results appear very promising for the millions of poor in the more marginal rain-fed agricultural areas of developing countries, the paper says. In addition, the estimated annual benefits to the private sector would be $US93 million. The paper says this suggests that there are significant financial incentives for the creation of public-private sector partnerships to foster GM drought tolerant research in major cereal crops. Large overlaps in agroecological-drought risk zones between countries suggest that substantial scope also exists for inter-country collaboration in drought tolerance research and sharing of spillovers from both public and private investments, according to the paper. The paper can be viewed online at the link below.

http://ageconsearch.umn.edu/handle/9940