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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

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