New Bean Varieties and their Economic Impact: Evidence from Latin America
Byron Reyes; Richard Bernsten; Mywish Maredia; Eric Crawford; Jim Kelly; Juan Carlos Rosas
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A poster presented at the 2012 Global Pulse Researchers Meeting, Kigali, Rwanda- “Transforming Grain-Legume Systems to Enhance Nutrition and Livelihoods”. Abstract: Based on data collected from bean experts and other secondary data, this study estimates adoption rates of improved varieties (IVs) in Honduras, El Salvador, Nicaragua, Costa Rica, and Ecuador, estimates yield gains from IVs, and evaluates the economic impact of the use of new IVs. Results indicate that on average, 65% of the bean area was planted to IVs in these countries and total adoption rates were highest in Nicaragua (82%) and lowest in Honduras (46%). The diffusion curves had a positive slope for all countries except Costa Rica. The IVs adopted most widely in 2010 were Amadeus 77 in Central America and Portilla in northern Ecuador. New IVs yield, on average, 0.49% more than old IVs in CA, 0.56% more in Honduras and 1.68% more in NE; which translates to an average yield potential of 10 kg/ha/year, 12 kg/ha/year and 21 kg/ha/year, respectively. For 1991-2015, net present value (NPV) ranged from US$-1.6 million in Costa Rica to US$92.3 million in Nicaragua. The estimated internal rate of return (IRR) ranged from 26% in Honduras to 35% in Ecuador and was negative for Costa Rica. The Implications of this study are: (1) in Costa Rica, efforts should be devoted at increasing the use of red beans and developing new black IVs; (2) the governments need to increase/maintain the financial support to bean research; and (3) although some governments have invested in promoting the use of IVs, there is still a need to increase seed production to increase adoption.