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Proceedings of the Fifth Asian Regional Maize Workshop - Search ...

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Table 8. COst <strong>of</strong> producing, processing and marketing seed <strong>of</strong> a double-cross hybrid in<br />

Mexico, 1992.<br />

Percent <strong>of</strong><br />

unit Value sale price<br />

seed production and processing costs:<br />

Gross seed yield kg/ha 3,000<br />

Net seed yield kg/ha 2,250<br />

Total production cost US$/ha 1,878 38<br />

seed processing US$/ha 420<br />

(sale value <strong>of</strong> discarded seed) US$/ha (183)<br />

Net processing cost US$/ha 237 19<br />

Total cost <strong>of</strong> production<br />

and processing<br />

Per ha US$/ha 2,115<br />

Per kg <strong>of</strong> seed US$/kg 0.94<br />

Cost breakdown per kg <strong>of</strong> hybrid seed:<br />

Production and processing US$/kg 0.94 57<br />

Promotion and sales US$/kg 0.38 23<br />

OVerhead US$/kg 0.09 5<br />

Subtotal US$/kg 1.41 85<br />

Net margin US$/kg 0.25 15<br />

Final sale price US$/kg 1.66 100<br />

seed-to-grain price ratio =6.8<br />

Source: Lopez Pereira and Espinoza C. (1993).<br />

replant one or more times. In all <strong>of</strong> <strong>the</strong>se situations, <strong>the</strong> use <strong>of</strong> hybrid seed may be<br />

unpr<strong>of</strong>itable unless ways are found to reduce <strong>the</strong> need for high seeding rates (e.g., use <strong>of</strong><br />

soil insecticide in East Java, introduction <strong>of</strong> materials in Pakistan which can withstand<br />

leaf stripping, development <strong>of</strong> improved planting equipment in Thailand).<br />

3.3. Yield gains from hybrids<br />

on <strong>the</strong> benefit side, <strong>the</strong> most important variable determining <strong>the</strong> attractiveness <strong>of</strong><br />

maize hybrids is <strong>the</strong> yield advantage <strong>the</strong>y <strong>of</strong>fer compared to <strong>the</strong> farmer's current material.<br />

Depending on <strong>the</strong> type <strong>of</strong> material currently being grown, <strong>the</strong> relevant comparison may be<br />

with an unimproved local variety, with an improved OPV, or even with ano<strong>the</strong>r, older<br />

hybrid. In areas where hybrids are replacing unimproved local varieties (e.g., parts <strong>of</strong><br />

Eastern and Sou<strong>the</strong>rn Africa, Central America), yield increases on <strong>the</strong> order <strong>of</strong> 40-5~ are<br />

quite realistic (Table 9). In areas where hybrids are replacing improved OPVs (e.g.,<br />

Thailand, parts <strong>of</strong> India), it may be difficult to achieve yield increases <strong>of</strong> more than 20­<br />

25% over <strong>the</strong> levels currently being achieved by farmers. In areas where <strong>the</strong> use <strong>of</strong> hybrids<br />

is already extensive (e.g., China, nor<strong>the</strong>rn Mexico, parts <strong>of</strong> Brazil), yield increases<br />

214

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