Opportunities Seized, Opportunities Missed: Differences in the Economic Impact of Bean Research in Five Latin American Countries
November 1, 2016 - Byron A. Reyes, Mywish K. Maredia, Richard H. Bernsten, and Juan Carlos Rosas
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EmailIDWP 151. Byron A. Reyes, Mywish K. Maredia, Richard H. Bernsten, and Juan Carlos Rosas. 2016. Opportunities Seized, Opportunities Missed: Differences in the Economic Impact of Bean Research in Five Latin American Countries
EXECUTIVE SUMMARY:
Over the past 20 years, the national systems in Central America and Ecuador have sustainably invested in research to improve varieties of common bean. Previous research has focused on estimating economic benefits realized by new adopters who replace traditional varieties with improved varieties (type I gains). However, recent literature has demonstrated the importance of also estimating the economic benefits realized by current adopters who replace old improved varieties (IVs) with new IVs (type II gains). This study provides estimates of adoption rates of improved varieties in four countries in Central America (Costa Rica, El Salvador, Honduras, Nicaragua) and Northern Ecuador, and calculates the economic benefits realized by new adopters who replace traditional varieties with improved varieties (type I gains) and current adopters who replace old IVs with new IVs (type II gains).
Results suggest that the adoption rates of IVs in 2010 ranged from 46% in Honduras (lowest) to 82% in Nicaragua (highest). New adopters obtain 12-18% yield gains from replacing traditional varieties with IVs (type I gains), and current adopters obtain 0.49-1.68% yield gain per year by replacing older IVs with newer IVs (type II gains). Benefit/cost analysis indicates that returns to investments were negative in Costa Rica and positive elsewhere, with a regional NPV of US$358 million and IRR of 32%. Results indicate the importance of research networks and spillover benefits that small countries derive through research collaboration. They reiterate the significance of consumer preferences in explaining adoption (or dis-adoption) of IVs, and highlight the importance of two types of benefits farmers derive from sustained investments in breeding research and the seed system.
