Benefits from Bt Cotton Use by Smallholder Farmers in South Africa

Abstract

This paper describes the results of research conducted in the Makhathini region, Kwazulu Natal, Republic of South Africa, designed to explore the economic benefits of the adoption of Bt cotton for smallholders. Results suggest that Bt cotton had higher yields than non-Bt varieties and generated greater revenue. Seed costs for Bt cotton were double those of non-Bt, although pesticide costs were lower. On balance, the gross margins (revenue-costs) of Bt growers were higher than those of non-Bt growers.