Manila, The Philippines
December 4-5, 2004
By: Lyn Resurreccion
Philippines TODAY
(Earth and Science Section) via
SEARCA BIC
(Links are to a PDF file on the
SEARCA BIC website)
The debate on biotechnology, or specifically on genetically
modified organisms (GMOs), has quieted down in the past year
from the fever-pith level of more than two years ago, although
the opposition against the modern technology that is seen to
dominate the new millennium still persists.
At the center of the debate in the country was the controversial
Bt (Bacillus thuringiensis) corn, the product of a process where
the Bt protein found in the soil is integrated into the corn
plant to equip it with a high degree of resistance to the
damaging Asian corn borer.
Critics oppose the technology in the name of human safety and
the environment, despite the scientists' persistent denials of
such peril, and painstaking explanations that there has been no
evidence to that effect.
But, at least, so far now, the days of plant pulling, such as in
the Bt corn field trial in Tamapkan, South Cotabato, and the
emotion-filled rallies or for a against the technology, have
passed.
Since the Department of Agriculture approved in December 2002
the commercial release of Bt corn, what have been seen and heard
are testimonies in favor of the main beneficiaries of the
technology-the farmers-on the advantages of the use of Bt corn.
In a paper at the 45th National PAEDA Convention in Quezon City
in October, entitled "Economic Impact of Bt Corn in the
Philippines," Jose M. Yorobe Jr., assistant professor of the
Department of Agricultural Economics at the University of the
Philippines Los Baqos, said that after one year of commercial
adoption in only about 10,000 hectares planted to Bt corn in the
country, substantial unit-yield increase of as much as 37
percent was realized by the Bt corn farms.
"This translates to an additional profit of P10,132 per hectare
with a reduction in insecticide expenditures of 60 percent. An
incremental net income of P1.34 per kilogram was gained by the
Bt-corn users, although the seed cost was twice the ordinary
hybrid," Yorobe said in the paper. He acknowledged that the
paper was part of a study by the international Service for the
Acquisition of Agribiotech Applications (ISAAA), a
not-for-profit organization, on the impact of Bt corn in the
Philippines. ISAAA centers are based in the Philippines, Kenya
and the United States.
He stressed that the adoption of Bt corn in the country, albeit
still limited in time and hectarage, showed a significant impact
on the farm financial performance as shown by the adoption
elasticity that was even higher than those observed in developed
countries. The Yorobe paper used data from the ISAAA survey,
which interviewed 107 Bt and 362 non-Bt corn farmers in the wet
and dry seasons of crop year 2003 and 2004 in four major Bt-corn
adopting provinces of Isabela, Camarines Sur, Bukidnon, and
South Cotabato.
At least three towns and three barangays per town were chosen
based on the density of Bt-corn adopters.
Lesser use of insecticide
BEFORE the adoption of Bt corn in the Philippines, damage by the
Asian corn borer on corn yield had reached as high as 30
percent, or a low of 4.3 percent. Farmers used insecticides,
which have been proven costly and unsafe to the human health and
to the environment. With the Bt corn, Yorobe said insecticide
use by farmers was reduced based on the amount spent on
insecticides per hectare. About P168 per hectare was saved on
insecticide expenditures by Bt-corn farmers. "This implies that
farmers sprayed fewer times and used less insecticides," he
said.
Yorobe explained that
Table 1 showed that the amount used by
non-Bt farmers on insecticides was relatively high in Isabela
and Camarines Sur because of the prevalent incidence of corn
borer. The cost advantage was not conspicuous in Bukidnon
especially during the second (dry) season because the incidence
of corn borer was slight. More insecticide use was also reported
in Bukidnon in the wet season because of the prevalence of corn
borer.
High yield and income
OF course, the major consideration in the use of new
technology-this time Bt corn-is profitability. Farmers venture
into new methods to be able to increase their income. The
reduction in pest damage, Yorobe said, translates to better
yield and income. He stressed: "Experiences in other countries
already indicate the superior financial performance of Bt- corn
farms over the non-Bt corn ones." A comparison of mean yield per
hectare of Bt corn and non-Bt corn showed the "substantial
absolute advantage" of Bt corn (Table
2).
Yorobe observed that in all locations in both cropping seasons,
the Bt-corn farms had a yield advantage of 34.32 percent over
non-Bt corn users, with a high of more than 37 percent in
Camarines Sur and South Cotabato. The average yield of Bt-corn
farms was 4,850 kg/hectare compared to only 3,610 kg/hectare for
non-Bt corn.
The study said that financial evaluation on the performance of
Bt-corn farms also indicated an increase of about 25 percent in
profitability over non-Bt corn farms. The yield differences
between Bt corn and non-Bt corn farms were "statistically
significant" in all locations, except in Bukidnon, the study
said, at 1-percent level for the first cropping, and 5-percent
level for the second cropping. The favorable growing conditions
in Isabela and South Cotabato in the second dry season
contributed significantly to better corn production, Yorobe
said.
Table 3 presented an evaluation of the
financial performance of Bt and non-Bt farms for 2003-2004. The
production coast of a kilo of Bt corn was lower by 23 centavos
than the non-Bt, but cash costs were higher. The net income per
kilo showed a difference of 10 centavos for the Bt corn and had
an advantage of more than P1/kg in returns over the non-Bt
varieties. Yorobe also observed that Bt corn received a premium
price in the market due to better quality and less impurities.
He said that Bt-corn farmers, particularly in Camarines Sur and
Bukidnon, received premium prices by as much P1.61/kg during the
second crop. Many farmers traced this to the fact that Bt-corn
kernels and ears were bigger and cleaner with uniform sizes.
In sum, (Table
4) the increase in total revenue of Bt
corn farms amounts to P14,849 per hectare, with savings of
P168/hectare in insecticide expenditure. Although the seed costs
were twice higher than the non-Bt varieties, the study showed
that the profit advantage almost doubled. The benefit cost ratio
of 2.014 shows the better performance of Bt corn. With the
estimated area planted to Bt corn in 2003-2004 at 10,769
hectares,
Table 5 shows the results of the
distribution of benefits. The estimates are presented by region
owing to wide differences in agro-climatic conditions and
management practices across regions, Yorobe explained.
Variations in yield per hectare and cost per unit were evident
in the results. With a larger area planted to Bt corn and a
higher cost reduction per unit, the net benefit to farmers was
largest in Northern Luzon, with P20.95 million. Farmers in
Northern Mindanao had negative benefits as more costs were
reported on fertilizers, chemicals and hired labor. Farms in
these areas also experienced drought and stalk rot infestation.
After one year of commercialization, the net benefit to farmers
in the aggregate amounted to p46.44 million. This was estimated
using the area planted to Bt and the reduction in per-unit
costs. The estimated gross revenue by the seed company was
P43.48 million, which includes the cost of the technology. These
benefits, Yorobe underlines, represent the direct and immediate
impact of the corn industry and now cover the indirect effects
with other industries, like livestock, where corn is a big
demand.
Farmer's profile
IT is interesting to note that there are some noticeable
differences observed in the characteristics between Bt and
non-Bt corn farmers, which could be important factors in the
adoption of the new technology. (Table
6) It shows that Bt corn farmers were
relatively younger (45.38 against 46.77 years), and have larger
farms (4.04 hectares against 2.47 hectares) than their non-Bt
counterparts.
The area planted to Bt corn was also larger (2.64 hectares)
compared to non-Bt corn (1.64 hectares). Bt corn farmers were
also better-educated (about 10 years of formal schooling against
the non-Bt corn users' eight years); they earned more-over
P2,000 a month-from other sources besides farming, and this is
an important source of capital for farming operations.
The study also showed that although fewer Bt corn farmers were
members of farmers' organizations many of them (91 percent) have
frequent contact with extension workers.
What needs to be done?
WITH the high cost of Bt corn seeds, Yorobe said finding ways to
reduce that cost will certainly result in a net benefit to
farmers.
"The current effects are still minimal considering an adoption
rate of only 1 percent," he said. In order to further realize
the benefits of Bt corn through higher adoption rates, public
support is needed in terms of information dissemination,
development of the Bt-corn seed market and the government
incentives to facilitate farmers' access to the technology.
He said that the availability of Bt-corn seed is still limited
and domestic-seed production capacity is still low. "As the seed
market is opened to other entrants, the adoption rate and
welfare gains are expected to increase in the future," he said.
Despite its current limitations, Yorobe said that the results of
the one-year introduction of Bt corn to Filipino farmers
"clearly favor the national agenda of increased productivity and
income for small corn farmers."
But, he asserted, "the adoption level should be increased." |