Marnus Gouse

BT COTTON IN SOUTH AFRICA: ADOPTION AND THE IMPACT ON FARM INCOMES AMONGST SMALL-SCALE AND LARGE SCALE FARMERS

Abstract South Africa is one of few developing countries, and the only one in Africa that has adopted genetically modified crops for commercial production. The very impressive adoption rate of insect-resistant cotton in South Africa can be attributed to different benefits enjoyed by adopters. This article focuses on the reasons and effects of Bt cotton adoption by large-scale and small-scale cotton farmers in South Africa and considers the impact of the adoption on yields, cost and profit. In addition the paper also analyses the production efficiency of adopters and non-adopters. Both large-scale and small-scale farmers enjoy financial benefits due to higher yields and despite higher seed costs. In addition, those who adopted the technology appear to be more technically efficient than those who do not adopt—indicating that it is perhaps the better farmers who spot the potential benefits of the Bt cotton seed. Further diverse analysis of the results from the various surveys are underway and promises to deliver interesting results on the various impacts Bt cotton is having on the South African cotton industry.

Agricultural technology, productivity and employment : policies for poverty reduction

I have cherished the ideal of a democratic and free society in which all persons live together in harmony with equal opportunities. It is an ideal, which I hope to live for, and to see realised. But my lord, if needs be, it is an ideal for which I am prepared to die. Nelson Mandela, 20th April 1964, Johannesburg Abstract This paper begins by arguing that agricultural economics has an important contribution to make to the economic transition of the new democratic South Africa. Policies are required to reduce unemployment, poverty and inequality, but does the work of agricultural economists provide the policy makers with the information necessary to make the correct choices? In this context, we update our recent work on technology, efficiency and productivity in South African agriculture, for both the commercial and smallholder sub-sectors. For the commercial sector, this means extending the total factor productivity index and estimates of the demand for labour. For the smallholder sector, there are new results on the impacts of GM cotton and white maize on output and employment. However, this piecemeal approach treats the two sectors as entirely separate, when they are actually interdependent. Thus, a Ricardian model of dualistic agriculture is used to explain the historical development of dualism in agriculture, especially how the native agriculturalists were impoverished by the colonists. Then this model is adapted to resemble the Harris-Todaro model of urban unemployment is order to represent the present dual agricultural sector. This allows the current policy options to be compared, although real data is needed to estimate the relationships and so the full analysis remains incomplete.

The Adoption and Impact of Agricultural Biotechnology in South Africa

South Africa is one of the few developing countries to adopt modern biotechnologies. As part of the adoption, South Africa has developed a number of active biotechnology research programs.