An Economic Assessment of Banana Genetic Improvement and ...

An Economic Assessment of Banana Genetic Improvement and ... An Economic Assessment of Banana Genetic Improvement and ...

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158 CHAPTER 11 in cooking, brewing of local beer, roasting, or sweet desserts (snacks). A common set of biophysical pressures constrain banana productivity in the region. In both Tanzania and Uganda, drastically declining yields were reported from the 1970s to the early 1990s, caused by soil fertility problems, weevils, nematodes, Fusarium wilt, and black Sigatoka. Since then (and not studied here), bacteria wilt has beset banana plantations in the region. Other economic factors pose challenges for raising banana productivity and encouraging the product commercialization that will lead to increased rural income. Continuous propagation in banana groves implies high labor demands—in the face of rising opportunity costs for labor—to manage soils and mats effectively. Perennial production means that bananas often serve a key role in meeting food consumption or cash needs, particularly for poor families, but commercialization is inhibited by the bulk and perishable nature of the product. Many bananas are sold at the farm gate, with high and variable market margins. Although there is potential for product diversification through processing, a negligible percentage of production is now processed. The prospects for exports are modest, given the preferences of world consumers for dessert bananas, and the competition. Against this common backdrop, each country has pursued its own strategy for resolving the challenges. The Ugandan National Banana Research Programme (NBRP) has pursued a three-pronged approach to combating biotic constraints to banana production. In addition to assembly and evaluation of local and foreign germplasm, including hybrids from FHIA and IITA, the program has undertaken breeding for resistance by crossing and genetic transformation, combined with tissue culture propagation of clean planting material. Elite highland bananas have also been propagated and distributed to farmers. The bestyielding highland bananas have proved sterile and hence not amenable to conventional breeding. As a consequence, genetic transformation is a major option for attaining host-plant resistance. Related research is under way on a range of varieties that represent the diversity among genomes and clone sets in the region, in order to retain the enduse attributes appreciated by consumers. The third element of NBRP’s approach is the development and recommendation of banana management practices, consisting of both natural resource (soil and water) and sanitation techniques. Like the national research program in Uganda, the program in Tanzania has brought in a large number and wide variety of materials for evaluation under local conditions. In the context of the KCDP project, the governments of Tanzania and Belgium then diffused relatively large amounts of new planting material in Kagera Region, including exotics and hybrids. Farmer participation in evaluation and testing, as well as their central role in supplying planting material, is a salient feature of the traditional production system and is reflected in the strategies of both NARO and ARDI. Tanzanian researchers have documented the role that farmers have played historically in locating sources of clean planting material—often over great distances—over the past half-century recalled by farmers in personal interviews. Various farmer-based systems have served as a means of efficient dissemination of materials, albeit on small scales in specific locations in Uganda. Not only the material, but also the information about management practices appears to diffuse primarily through farmer-based channels, although roughly half of farmers in Uganda rely on formal sources in addition to other farmers. Of formal sources, government extension figures most prominently. Linked by language, culture, and history, banana growers in Tanzania and Uganda are separated by a national border and live in different administrative and political jurisdictions. In both the Ugandan and Tanzanian subdomains, roughly one-

CONCLUSIONS AND IMPLICATIONS FOR RESEARCH POLICY 159 quarter of household heads are women. Both men and women participate in cultivar choice, final production decisions, sales, and beer making, although there seems to be a more pronounced gender division of labor in some tasks in Tanzania. Participation in banana markets is patchy, underscoring the semisubsistence nature of banana production for many households in the region. The rate of commercial sales appears much higher in the highlands of Tanzania than in those of Uganda, and in both countries, the highlands regions are much more commercially oriented than the lowlands. In Uganda, statistical tests confirm that expected yield losses from black Sigatoka differ by elevation, with the geographical focus of the disease in the lowlands. Consistent with researchers’ observations, cooking quality and yield (bunch size) are the characteristics that growers consider most important. Endemic varieties are considered superior for cooking, and hybrids are rated higher for bunch size and resistance to weevils, though perceived differences for disease are not statistically significant in Uganda. Hybrids are rated more highly across all attributes than endemic types in Tanzania. As signaled by the Tanzanian authors in this report, disease pressures were so great in some areas of Kagera Region that farmers lost their endemic varieties entirely, leaving no point of reference. Differences in dissemination strategies, biotic pressures, farmer perceptions, and the geographical scale of the area studied probably contribute to the stark differences in adoption rates between Uganda and Tanzania. In Uganda, the percentage of farmers using hybrids is negligible when considered across the full expanse of banana-growing areas, but within targeted villages, use rates are high. In Tanzania, the 20 varieties most frequently grown in Kagera Region include one of the FHIA hybrids, and roughly one in five farmers has planted banana hybrids. Nearly all farmers grow exotic farmers’ cultivars. The rate of use of recommended natural resource and mat management practices is much higher in Uganda than the rate of use of improved materials, although the labor intensity of these practices means that typically, only a portion of the average plantation is tended using the practice. The focal role of farmers in planting material systems, emphasized in the chapters on banana improvement strategies in both countries, is confirmed by the baseline data. In Uganda, there are large numbers of exchanges of planting material of all types, but more so for nonendemic bananas, including hybrids bought and sold for cash. Most planting materials are exchanged without money, in part because initial dissemination by KCDP was free of charge. The fact that Ugandan farmers traversed an average of 15 km for new planting material, compared to less than 3 km in Tanzania, indicates that high fixed costs of transaction may also be impeding adoption in Uganda. The application of econometric models supports several general conclusions related to adoption of existing and emerging technologies. First, findings demonstrated the potentially pro-poor application of transgenic cooking varieties and showed that the choice of host cultivar for trait insertion is likely to have social consequences. Simulations illustrate the extent to which supporting public investments in education, market infrastructure, and extension will augment farmer demand for new planting material. The demand for planting material of the cooking varieties that are potential host varieties for gene insertion varies according to the characteristics of households, farms, and markets and the attributes of varieties. In particular, farmers also demand material with lower expected yield losses to black Sigatoka and weevils—traits targeted for genetic transformation. Second, the evidence confirms that adoption of FHIA hybrids reduces the vulnerability of Tanzanian households to yield losses from pests and diseases. For farmers with few nonfarm sources of income, reducing production risk can smooth both con-

158 CHAPTER 11<br />

in cooking, brewing <strong>of</strong> local beer, roasting,<br />

or sweet desserts (snacks).<br />

A common set <strong>of</strong> biophysical pressures<br />

constrain banana productivity in the region.<br />

In both Tanzania <strong>and</strong> Ug<strong>and</strong>a, drastically<br />

declining yields were reported from the<br />

1970s to the early 1990s, caused by soil fertility<br />

problems, weevils, nematodes, Fusarium<br />

wilt, <strong>and</strong> black Sigatoka. Since then<br />

(<strong>and</strong> not studied here), bacteria wilt has<br />

beset banana plantations in the region.<br />

Other economic factors pose challenges for<br />

raising banana productivity <strong>and</strong> encouraging<br />

the product commercialization that will<br />

lead to increased rural income. Continuous<br />

propagation in banana groves implies high<br />

labor dem<strong>and</strong>s—in the face <strong>of</strong> rising opportunity<br />

costs for labor—to manage soils<br />

<strong>and</strong> mats effectively. Perennial production<br />

means that bananas <strong>of</strong>ten serve a key role in<br />

meeting food consumption or cash needs,<br />

particularly for poor families, but commercialization<br />

is inhibited by the bulk <strong>and</strong><br />

perishable nature <strong>of</strong> the product. Many bananas<br />

are sold at the farm gate, with high<br />

<strong>and</strong> variable market margins. Although<br />

there is potential for product diversification<br />

through processing, a negligible percentage<br />

<strong>of</strong> production is now processed. The prospects<br />

for exports are modest, given the<br />

preferences <strong>of</strong> world consumers for dessert<br />

bananas, <strong>and</strong> the competition.<br />

Against this common backdrop, each<br />

country has pursued its own strategy for<br />

resolving the challenges. The Ug<strong>and</strong>an<br />

National <strong>Banana</strong> Research Programme<br />

(NBRP) has pursued a three-pronged approach<br />

to combating biotic constraints to<br />

banana production. In addition to assembly<br />

<strong>and</strong> evaluation <strong>of</strong> local <strong>and</strong> foreign germplasm,<br />

including hybrids from FHIA <strong>and</strong><br />

IITA, the program has undertaken breeding<br />

for resistance by crossing <strong>and</strong> genetic transformation,<br />

combined with tissue culture<br />

propagation <strong>of</strong> clean planting material. Elite<br />

highl<strong>and</strong> bananas have also been propagated<br />

<strong>and</strong> distributed to farmers. The bestyielding<br />

highl<strong>and</strong> bananas have proved sterile<br />

<strong>and</strong> hence not amenable to conventional<br />

breeding. As a consequence, genetic transformation<br />

is a major option for attaining<br />

host-plant resistance. Related research is<br />

under way on a range <strong>of</strong> varieties that represent<br />

the diversity among genomes <strong>and</strong> clone<br />

sets in the region, in order to retain the enduse<br />

attributes appreciated by consumers.<br />

The third element <strong>of</strong> NBRP’s approach is<br />

the development <strong>and</strong> recommendation <strong>of</strong><br />

banana management practices, consisting <strong>of</strong><br />

both natural resource (soil <strong>and</strong> water) <strong>and</strong><br />

sanitation techniques.<br />

Like the national research program in<br />

Ug<strong>and</strong>a, the program in Tanzania has<br />

brought in a large number <strong>and</strong> wide variety<br />

<strong>of</strong> materials for evaluation under local conditions.<br />

In the context <strong>of</strong> the KCDP project,<br />

the governments <strong>of</strong> Tanzania <strong>and</strong> Belgium<br />

then diffused relatively large amounts <strong>of</strong><br />

new planting material in Kagera Region,<br />

including exotics <strong>and</strong> hybrids.<br />

Farmer participation in evaluation <strong>and</strong><br />

testing, as well as their central role in supplying<br />

planting material, is a salient feature<br />

<strong>of</strong> the traditional production system <strong>and</strong> is<br />

reflected in the strategies <strong>of</strong> both NARO<br />

<strong>and</strong> ARDI. Tanzanian researchers have<br />

documented the role that farmers have<br />

played historically in locating sources <strong>of</strong><br />

clean planting material—<strong>of</strong>ten over great<br />

distances—over the past half-century recalled<br />

by farmers in personal interviews.<br />

Various farmer-based systems have served<br />

as a means <strong>of</strong> efficient dissemination <strong>of</strong><br />

materials, albeit on small scales in specific<br />

locations in Ug<strong>and</strong>a. Not only the material,<br />

but also the information about management<br />

practices appears to diffuse primarily<br />

through farmer-based channels, although<br />

roughly half <strong>of</strong> farmers in Ug<strong>and</strong>a rely on<br />

formal sources in addition to other farmers.<br />

Of formal sources, government extension<br />

figures most prominently.<br />

Linked by language, culture, <strong>and</strong> history,<br />

banana growers in Tanzania <strong>and</strong><br />

Ug<strong>and</strong>a are separated by a national border<br />

<strong>and</strong> live in different administrative <strong>and</strong> political<br />

jurisdictions. In both the Ug<strong>and</strong>an<br />

<strong>and</strong> Tanzanian subdomains, roughly one-

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