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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78 CHAPTER 6 grow, but have grown in the past or currently observe in the banana groves of their neighbors (s ⊂ ṽ : v i = 0). The definition of the dependent variable imposes a unique shape on the underlying distribution, which is strongly skewed to the right. The concentration of the mass on the corner (“excess zeros”) and the formulation of the dependent variable in terms of integer values (count of banana plants) dictate the need for a count data approach (Cameron and Trivedi 1998). One such approach is the zero-inflated Poisson (ZIP) system, which is used to predict the number of mats of cooking banana cultivars grown, defined by the set ṽ. 2 Zero inflated models, often employed to jointly estimate censored systems of equations, characterize the separate mechanisms that generate corner solutions by assigning different probabilities to the observed outcomes based on a logit formulation: exp_ ci Zi F_ ci Zi = . 1 + exp_ ci Zi The vector Z depicts the set of exogenous characteristics explaining the probability of each outcome, and γ i is the vector of parameters to be estimated: P[v i = 0] = F(γ i Z) ∀i ∉ ṽ P[v i ∼ Poisson(μ i )] = 1 – F(γ i Z) ∀i ∉ ṽ For all distinct cultivars (and attributes) in the feasible set, the count of banana plants is a non-negative integer distributed Poisson with μ i = exp(β i X). The vector of exogenous characteristics (X) includes the consumption attributes and agronomic traits of cultivars (which are not part of Z), 3 with other household, farm, and market characteristics. The ZIP formulation accounts for the awareness of cultivar attributes, as well as for levels of cultivar demand. Demand for planting material is estimated jointly as a system of i = 1, . . . , N independent censored count equations. Models that treat correlated errors for large systems of censored (count) demand equations have not yet been sufficiently developed for application (Englin, Boxall, and Watson 1998; von Haefen, Phaneuf, and Parsons 2004). In a nonstructural simultaneous system, in any case, accounting for error correlations would serve only to increase estimation efficiency. Dependent Variables The spatial diversity of distinct banana cultivars on farms and across the domain is considerable (see Chapter 5 and Appendix A). The dependent variable is defined as the number of mats planted of seven candidate host cultivars (ṽ for i = 1, . . . , 7), representing the revealed demand for planting material and almost half of the total mat numbers of cooking cultivars in the survey domain. A large number of cultivars are observed on household farms in Uganda. No single cooking cultivar occupies more than 9 percent of the total number of banana plants grown by all farmers surveyed. The vast majority of cooking cultivars (75 percent) represent a small share of all cooking banana plants in the sample—each cultivar occupying less than 1 percent. Because farmers grow on average seven different cultivars per plantation, a set of seven cultivars was taken as representative. The seven cultivars were selected from among 67 potential host cooking cultivars identified in the sample based on a combi- 2 The ZIP was found to perform better than the simple Poisson model. The Vuong statistic (distributed standard normal) for the test of a ZIP model versus a standard Poisson model is 9.73, which favors the zero-inflated model (Vuong 1989). 3 The difference in the composition of the sets represented by the vectors X and Z is data driven. Attribute information is available for only the cultivars in the feasible set.

MODEL OF POTENTIAL DEMAND FOR CULTIVARS IN UGANDA 79 Table 6.1 Summary statistics for variables defined at the household level Variable Definition Mean Standard deviation Explanatory variables Experience Ratio of years of experience to age of person in charge of banana production 0.22 0.04 Education Years of schooling of the person in charge of banana production 5.54 0.72 Dependency ratio Ratio of household dependents (aged 1–15 and older than 55 years) to total household size 0.47 0.05 Household size Total number of household members 5.55 0.50 Extension Number of visits by extension agents in the last 6 months 0.69 0.42 Assets Value of livestock owned by the household (ten thousand Ush) 43.68 19.40 Exogenous income Exogenous income the household has received in the previous year (ten thousand Ush) 122.73 60.46 Banana area Area allocated to banana production (acres) 0.92 0.28 Planting material Number of distinct banana cultivars available in the village 23.69 1.15 Elevation Elevation (1 = below 1,400 m.a.s.l.; 0 = above 1,400 m.a.s.l.) 0.89 0.06 Time Hours to nearest market for bananas 1.07 0.13 Notes: The mean is calculated as a weighted average for each variable. m.a.s.l. is meters above sea level. nation of scientists’ and farmers’ criteria. NARO scientists have identified several cultivars for initial transformation assays to represent the range of genomic and usegroup diversity found among clone sets in Uganda (Karamura and Pickersgill 1999). 4 Survey data reveal the cultivars that are currently most frequently and extensively grown by farmers in major banana-growing areas of Uganda, suggesting that these are preferred, given the many constraints farmers face and current field conditions. The seven cultivars chosen for the analysis include two that are both widely grown and were initially identified for assays (Mbwazirume and Kibuzi), one that is widely grown but not yet targeted for assays (Nakitembe), and four that are identified, although not as extensively grown (Nakinyika, Enjagata, Kisansa, and Mpologoma). All are endemic cooking cultivars of the East African highlands. Explanatory variables The determinants of cultivar demand include household (Ω HH , I), farm (Ω F , v- , ṽ) and market characteristics (p Ω M ) and cultivar attributes (z C , zP ), as specified in the reduced form equation (9). 5 The comparative statics of a nonseparable agricultural household model are complex, and in general, unambiguous signs on the direction of effects cannot be derived. Hypothesized effects are supported by observations from banana research or the literature on seed innovations in developing economies. Explanatory variables are defined and summarized at the household level (Table 6.1) and at the cultivar level (Table 6.2). Household characteristics include the expe- 4 Endemic banana cultivars are classified into five clone sets. The 67 cooking cultivars identified in the sample are variants within four of these clone sets, with the fifth one representing endemic beer cultivars. The seven cooking cultivars used in the analysis span the four clone sets. 5 No data were available for prices of other goods purchased by the household ( p G ). This variable was not included in the analysis.

MODEL OF POTENTIAL DEMAND FOR CULTIVARS IN UGANDA 79<br />

Table 6.1 Summary statistics for variables defined at the household level<br />

Variable Definition Mean<br />

St<strong>and</strong>ard<br />

deviation<br />

Explanatory variables<br />

Experience Ratio <strong>of</strong> years <strong>of</strong> experience to age <strong>of</strong> person in charge <strong>of</strong> banana production 0.22 0.04<br />

Education Years <strong>of</strong> schooling <strong>of</strong> the person in charge <strong>of</strong> banana production 5.54 0.72<br />

Dependency ratio Ratio <strong>of</strong> household dependents (aged 1–15 <strong>and</strong> older than 55 years) to total<br />

household size 0.47 0.05<br />

Household size Total number <strong>of</strong> household members 5.55 0.50<br />

Extension Number <strong>of</strong> visits by extension agents in the last 6 months 0.69 0.42<br />

Assets Value <strong>of</strong> livestock owned by the household (ten thous<strong>and</strong> Ush) 43.68 19.40<br />

Exogenous income Exogenous income the household has received in the previous year<br />

(ten thous<strong>and</strong> Ush) 122.73 60.46<br />

<strong>Banana</strong> area Area allocated to banana production (acres) 0.92 0.28<br />

Planting material Number <strong>of</strong> distinct banana cultivars available in the village 23.69 1.15<br />

Elevation Elevation (1 = below 1,400 m.a.s.l.; 0 = above 1,400 m.a.s.l.) 0.89 0.06<br />

Time Hours to nearest market for bananas 1.07 0.13<br />

Notes: The mean is calculated as a weighted average for each variable. m.a.s.l. is meters above sea level.<br />

nation <strong>of</strong> scientists’ <strong>and</strong> farmers’ criteria.<br />

NARO scientists have identified several cultivars<br />

for initial transformation assays to<br />

represent the range <strong>of</strong> genomic <strong>and</strong> usegroup<br />

diversity found among clone sets in<br />

Ug<strong>and</strong>a (Karamura <strong>and</strong> Pickersgill 1999). 4<br />

Survey data reveal the cultivars that are<br />

currently most frequently <strong>and</strong> extensively<br />

grown by farmers in major banana-growing<br />

areas <strong>of</strong> Ug<strong>and</strong>a, suggesting that these are<br />

preferred, given the many constraints farmers<br />

face <strong>and</strong> current field conditions. The<br />

seven cultivars chosen for the analysis include<br />

two that are both widely grown <strong>and</strong><br />

were initially identified for assays (Mbwazirume<br />

<strong>and</strong> Kibuzi), one that is widely<br />

grown but not yet targeted for assays (Nakitembe),<br />

<strong>and</strong> four that are identified, although<br />

not as extensively grown (Nakinyika,<br />

Enjagata, Kisansa, <strong>and</strong> Mpologoma). All<br />

are endemic cooking cultivars <strong>of</strong> the East<br />

African highl<strong>and</strong>s.<br />

Explanatory variables<br />

The determinants <strong>of</strong> cultivar dem<strong>and</strong> include<br />

household (Ω HH , I), farm (Ω F , v- , ṽ) <strong>and</strong><br />

market characteristics (p Ω M ) <strong>and</strong> cultivar<br />

attributes (z C , zP ), as specified in the reduced<br />

form equation (9). 5 The comparative<br />

statics <strong>of</strong> a nonseparable agricultural household<br />

model are complex, <strong>and</strong> in general,<br />

unambiguous signs on the direction <strong>of</strong> effects<br />

cannot be derived. Hypothesized effects<br />

are supported by observations from<br />

banana research or the literature on seed<br />

innovations in developing economies.<br />

Explanatory variables are defined <strong>and</strong><br />

summarized at the household level (Table<br />

6.1) <strong>and</strong> at the cultivar level (Table 6.2).<br />

Household characteristics include the expe-<br />

4<br />

Endemic banana cultivars are classified into five clone sets. The 67 cooking cultivars identified in the sample<br />

are variants within four <strong>of</strong> these clone sets, with the fifth one representing endemic beer cultivars. The seven<br />

cooking cultivars used in the analysis span the four clone sets.<br />

5<br />

No data were available for prices <strong>of</strong> other goods purchased by the household ( p G ). This variable was not<br />

included in the analysis.

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