An Economic Assessment of Banana Genetic Improvement and ...

CONCEPTUAL FRAMEWORK AND SAMPLE SURVEY DESIGN 19
Figure 2.3 Graphical depiction of analytical model used to assess the economic
benefits of mitigating productivity losses
Productivity
Yields over time with constraint but
with the adoption of improved
technology/practices
S 0
Research
benefits
Research
benefits
Yields over time with constraint and
without improved technology/practices
D 1
D 0
T 0 T 1
Time
Price
Quantity
S 1
S 1
R
Notes: S 0 and D 0 are the initial supply and demand situations at time T 0 , S 1 is the supply situation at time T 1
without research, S 1
R
is the supply situation at time T 1 with research, and D 1 is the demand at time T 1 .
left panel illustrates the general case of productivity
decline over time at a specific mat
or plot. Without intervention, or with ineffective
intervention, yields tend to decline
over time—perhaps dramatically so. The
use of recommended practices or technologies
might mitigate, but usually cannot eliminate
losses. The “with technology” case is
shown in the upper curve that declines more
slowly, generating an economic payoff for
the farmer relative to the “no technology”
case. The economic payoff is represented by
the shaded area between the curves, which
increases over time. At some point productivity
may become so low that banana production
is no longer economic at such sites. here> 2.3near