GM Crops: The First Ten Years - International Service for the ...
GM Crops: The First Ten Years - International Service for the ...
GM Crops: The First Ten Years - International Service for the ...
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<strong>GM</strong> <strong>Crops</strong>: <strong>The</strong> <strong>First</strong> <strong>Ten</strong> <strong>Years</strong><br />
Figure 13. National farm income impact of using <strong>GM</strong> IR cotton in Argentina 1998-2005<br />
Million $<br />
14.0<br />
12.0<br />
10.0<br />
8.0<br />
6.0<br />
4.0<br />
2.0<br />
0.0<br />
Sources and notes:<br />
1. Impact data (source: Qaim & De Janvry (2002), although cost of technology in 2005 from Monsanto Argentina. Area data :<br />
source ArgenBio<br />
2. Yield impact +35%, cost of technology $86/ha ($40/ha 2005), cost savings (reduced insecticide use) $17.47/ha<br />
3. All values <strong>for</strong> prices and costs denominated in Argentine Pesos have been converted to US dollars at <strong>the</strong> annual average<br />
exchange rate in each year<br />
<strong>The</strong> main farm income impact of using <strong>the</strong> technology has been yield improvements of about 14%<br />
per year. In addition, <strong>the</strong>re have been important savings in <strong>the</strong> cost of production (lower insecticide<br />
costs) 38 . Overall, <strong>the</strong> annual net increase in farm profitability has been within <strong>the</strong> range of $112/ha<br />
and $354/ha between 1996 and 2005 (Table 24). At <strong>the</strong> national level, <strong>the</strong> farm income benefit in<br />
2005 was $13.6 million and <strong>the</strong> impact on total cotton production was an increase of 7.2%.<br />
Cumulatively since 1996, <strong>the</strong> farm income benefit has been $55 million. In added value terms, <strong>the</strong><br />
combined effect of <strong>the</strong> yield increases and lower cost of production on farm income in 2004 was<br />
equivalent to an annual increase in production of 10.5%.<br />
3.6.6 South Africa<br />
1998 1999 2000 2001 2002 2003 2004 2005<br />
In 2005, <strong>GM</strong> IR cotton 39 was planted on 17,000 ha in South Africa (57% of <strong>the</strong> total crop).<br />
<strong>The</strong> main impact on farm incomes has been significantly higher yields (an annual average increase<br />
of about 24%). In terms of cost of production, <strong>the</strong> additional cost of <strong>the</strong> technology (between $17/<br />
38 Cost of technology has annually been between $48/ha and $65/ha, insecticide cost savings between $88/ha and $121/ha and net<br />
savings on costs have been between $38/ha and $48/ha (derived from and based on Traxler et al (2001)<br />
39 <strong>First</strong> planted commercially in 1998<br />
30