E C O N O M I C S P R O G R A M P A P E R 0 4 - 0 1<strong>The</strong> <strong>Economic</strong> <strong>Impact</strong> <strong>in</strong>Develop<strong>in</strong>g <strong>Countries</strong> <strong>of</strong> Leaf RustResistance Breed<strong>in</strong>g <strong>in</strong> CIMMYT-RelatedSpr<strong>in</strong>g Bread WheatC.N. Marasas*Senior Researcher, Agricultural Research Council,Pretoria, South AfricaM. SmaleResearch Fellow, International Food Policy Research Institute (IFPRI),and Senior Economist, International Plant Genetic Resources Institute (IPGRI)R.P. S<strong>in</strong>ghWheat Geneticist/Pathologist, International Maize and WheatImprovement Center (CIMMYT)* Correspond<strong>in</strong>g author. Present position: Economist, Animal and Plant Health Inspection Service,United States Department <strong>of</strong> Agriculture.<strong>The</strong> research for this study was funded by CIMMYT, and all authors were affiliated withCIMMYT at the time <strong>of</strong> the study.1
CIMMYT® (www.cimmyt.org) is an <strong>in</strong>ternationally funded, not-for-pr<strong>of</strong>it organization that conducts research andtra<strong>in</strong><strong>in</strong>g related to maize and wheat throughout the develop<strong>in</strong>g world. Draw<strong>in</strong>g on strong science and effectivepartnerships, CIMMYT works to create, share, and use knowledge and technology to <strong>in</strong>crease food security, improvethe productivity and pr<strong>of</strong>itability <strong>of</strong> farm<strong>in</strong>g systems, and susta<strong>in</strong> natural resources. F<strong>in</strong>ancial support for CIMMYT’swork comes from many sources, <strong>in</strong>clud<strong>in</strong>g the members <strong>of</strong> the Consultative Group on International AgriculturalResearch (CGIAR) (www.cgiar.org), national governments, foundations, development banks, and other public andprivate agencies.Future Harvest® builds awareness and support for food and environmental research for a world withless poverty, a healthier human family, well-nourished children, and a better environment(www.futureharvest.org).© International Maize and Wheat Improvement Center (CIMMYT) 2004. All rights reserved. <strong>The</strong> designationsemployed <strong>in</strong> the presentation <strong>of</strong> materials <strong>in</strong> this publication do not imply the expression <strong>of</strong> any op<strong>in</strong>ion whatsoeveron the part <strong>of</strong> CIMMYT or its contributory organizations concern<strong>in</strong>g the legal status <strong>of</strong> any country, territory, city, orarea, or <strong>of</strong> its authorities, or concern<strong>in</strong>g the delimitation <strong>of</strong> its frontiers or boundaries. CIMMYT encourages fair use <strong>of</strong>this material. Proper citation is requested.Correct citation: Marasas, C.N., M. Smale, and R.P. S<strong>in</strong>gh. 2004. <strong>The</strong> <strong>Economic</strong> <strong>Impact</strong> <strong>in</strong> Develop<strong>in</strong>g <strong>Countries</strong> <strong>of</strong> Leaf RustResistance Breed<strong>in</strong>g <strong>in</strong> CIMMYT-Related Spr<strong>in</strong>g Bread Wheat. <strong>Economic</strong>s Program Paper 04-01. Mexico, D.F.: CIMMYT.Abstract: This study was undertaken to estimate the economic impact <strong>of</strong> efforts s<strong>in</strong>ce 1973 by the International Maizeand Wheat Improvement Center (CIMMYT) to develop spr<strong>in</strong>g bread wheat varieties resistant to leaf rust caused byPucc<strong>in</strong>ia tritic<strong>in</strong>a. This wheat disease is <strong>of</strong> major historical and economic importance worldwide. <strong>The</strong> challenge <strong>in</strong>estimat<strong>in</strong>g the benefits lies <strong>in</strong> the pathogen’s ability to mutate to new races, which may <strong>in</strong>fect previously resistantvarieties. Thus, whereas productivity enhancement is <strong>of</strong>ten measured <strong>in</strong> terms <strong>of</strong> yield ga<strong>in</strong>s and <strong>in</strong>creased supply,productivity ma<strong>in</strong>tenance is measured <strong>in</strong> terms <strong>of</strong> the yield losses avoided through resistance. An economic surplusapproach adjusted for ma<strong>in</strong>tenance research and a capital <strong>in</strong>vestment analysis were applied to estimate the returns onCIMMYT’s <strong>in</strong>vestment. <strong>The</strong> results <strong>of</strong> the analysis suggest an <strong>in</strong>ternal rate <strong>of</strong> return <strong>of</strong> 41%. When discounted by 5%,the net present value was 5.36 billion 1990 US$, and the benefit-cost ratio 27:1. This implies that every 1990 US dollar<strong>in</strong>vested <strong>in</strong> CIMMYT’s wheat genetic improvement over 40 years has generated at least 27 times its value <strong>in</strong> benefitsfrom leaf rust resistance breed<strong>in</strong>g <strong>in</strong> spr<strong>in</strong>g bread wheat alone. <strong>The</strong> f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> the study emphasize the importance <strong>of</strong>ma<strong>in</strong>tenance research <strong>in</strong> crop breed<strong>in</strong>g programs.ISSN: 1405-7735AGROVOC descriptors: Production economics; Wheat; Varieties; Plant breed<strong>in</strong>g; Genetic resistance; Bread;Pathogenesis; Disease resistance; Rusts; Pucc<strong>in</strong>ia; Crop yield; Agricultural research; <strong>Economic</strong> analysis; Develop<strong>in</strong>gcountriesAdditional keywords: CIMMYTAGRIS category codes: E16 Production <strong>Economic</strong>s; F30 Plant Genetics and Breed<strong>in</strong>gDewey decimal classification: 333.953Pr<strong>in</strong>ted <strong>in</strong> Mexico.2
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