Agricultural Biotechnology and Socioeconomics

Hashini Galhena Dissanayake Ph.D.

Michigan State University

Outline

Overview of agriculture sector1. Complexities in food systems

2. Emerging challenges

3. Overview of agriculture in developing countries

Strategies to increase agricultural production

Socioeconomic impacts of agricultural biotechnology and

1. Benefits

2. Concerns raised

Cartagena protocol on Biosafety

Approaches for socio-economic analysis

Overview of agriculture sector

Characteristics of agriculture sectors in Indonesia

Agriculture is a key sector in the

economy

Smallholders are the main

producers

Importer of agricultural

commodities

(rice, soy, sugar, corn, wheat, etc.)

(BBS)

High agricultural potential yet

low productivity

Depleting or fixed production inputs

Vulnerability to biotic and abiotic

stresses

Major Emerging Global Challenges

Population growth Food insecurity MalnutritionVulnerability to climate change

Loss of biodiversity Energy insecurityNatural Resources

limitationsPests and diseases

outbreaks

Food production

challenges are complex

Improving yields

Protecting what’s produced before and after

Ensuring access to resources and equity

Addressing needs (when, where, who)

TODAY’s

Rice Imports - total rice milled equivalent

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1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Import Quantity (000' tons) Import Value (1000 US$)

Potato Imports

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Potatoes, frozen (tonnes) Potatoes (tonnes)

Strategies to increase agricultural production

How to increase agricultural production?

1. Reallocation of resources or prioritization

How to increase agricultural production?

2. Increase production inputs – land, labor, capital, etc..

How to increase agricultural production?

3. Trade

How to increase agricultural production?

4. Introduction of new science and technology

Source of growth in agricultural output

in high-income countries

(1961 – 2014)

Source of growth in agricultural output

in low-countries (1961 – 2014)

Some factors to consider when adopting new technologies

Relevance - contextappropriate

Affordable Accessible

Resource efficientEconomically viable:

economic gains > economic cost

Scale neutral - small farmers benefit as

much as large farmers

Safety – humans and environment

Socioeconomics –culture, gender, etc.

Genetic Engineering (GE) is a tool for enhancing agricultural productivity and reducing crop losses resulting from

biotic and abiotic stresses

Socioeconomic impacts of Agricultural biotechnology

SOCIOECONOMIC IMPACT

CATEGORIES

Beneficial socioeconomic impacts

① Agronomic and production benefits• Yield gains (reduce losses,

• Reduced pressure to use new land for agriculture

• Input use efficiencies

• Production efficiencies

②Social benefits• Poverty alleviation

• Increase food availability and access

• Improve nutrition

• Make available nutritious and safe foods

• Reduce handling and exposure to agro-chemicals

• Gender-based attributes

• Better quality of life

Benefits to producers – yields

Farmers in developing countries achieve greater yield increases

Sources: Brookes and Barfoot 2014

④ Biotic stress management• Pest control and minimize

impacts on non-targeted organisms

• Better weed management

• Disease resistance

• Nematode resistance

③ Economic benefits• Decrease cost of production

• Improved quality of output

• Income gains

Benefits to producers – Revenues

CountryCost of

technology ($)

Averagegross farm

incomebenefit

minus cost of technology

Key benefit

1st Gen.HT Soybean

United State 15–53 32 Cost savings

South Africa 2–30 6 Cost savingsBrazil 7–25 32 Cost savings

HT Maize

United State 15–30 27 Cost savings

South Africa 9–18 5 Cost savingsBrazil 10–32 49 Cost savings and yield gains of 1% to 7%

HT CottonUnited State 13–82 21 Cost savingsSouth Africa 13–32 34 Cost savingsBrazil 26–54 67 Cost savings and yield gains of 1.6% to

4%

Source: Graham Brookes & Peter Barfoot (2017)

⑤ Abiotic stress management• Salt stress

• Drought tolerance

• Thermo-tolerance

⑥ Environmental benefits• Low use of hazardous chemical pesticides

• Reduced damage from soil-incorporated residual agro-chemicals

• Reduce tillage, energy-use and GHG emissions

• Minimize impacts on non-targeted organisms

Benefits to producers – input use

Trait

Change in volume of

active ingredient

used(million kg)

Change in field EIQ impact (in

terms ofmillion field

EIQ/ha units)

% changein AI use on GMcrops

% change in environmental

impact associated

with herbicide & insecticide use on GM c

Area GMtrait 2011

(million ha)

HT soybeans -2.3 -7,200 -0.1 -14.5 80.7

HT + IR soybeans -0.4 -41 -0.8 -2.8 2.5

HT maize -210.5 -6,689 -9.2 -13.5 43.8

HT canola -18.4 -661 -16.5 -27.9 8.1

HT cotton -21.3 -527 -7.2 -9.5 4.0

IR maize -71.7 -3,117 -51.6 -53.1 47.5

IR cotton -227.5 -10,234 -26.6 -29.4 22.4

HT sugar beet +1.7 -1 +31.2 -0.8 0.47

TOTAL -550.4 -28,470 -8.6 -19.0

Sources: Brookes and Barfoot 2015

Note: the reduced EIQ for the HT crops is because glyphosate is one of the most environmentally benign herbicides (less toxic, rapidly degraded in soil, less subject to run off into ground water).

⑦ Trade and market benefits

• Trade opportunities or marketability

• Improved quality

• Reduce spoilage

Adoption of GE crops in the U.S. - very rapid

In 201796% soybean

92% corn96% cotton

planted in the U.S. were GE varieties

GE crops were first introduced in 1995