Skip to content
Licensed Unlicensed Requires Authentication Published by De Gruyter February 25, 2021

Private Agricultural R&D: Do the Poor Benefit?

Jock R. Anderson ORCID logo EMAIL logo , Regina Birner , Latha Nagarajan , Anwar Naseem ORCID logo and Carl E. Pray

Abstract

Private agricultural research and development can foster the growth of agricultural productivity in the diverse farming systems of the developing world comparable to the public sector. We examine the extent to which technologies developed by private entities reach smallholder and resource-poor farmers, and the impact they have on poverty reduction. We critically review cases of successfully deployed improved agricultural technologies delivered by the private sector in both large and small developing countries for instructive lessons for policy makers around the world.


Corresponding author: Jock R. Anderson, MAgrSc, PhD, DEc, Rutgers The State University of New Jersey, 226 Hillsboro Dr, Silver Spring, MD, USA, E-mail:

References

Adu-Baffour, F., T. Daum, and R. Birner. 2019. “Can Small Farms Benefit from Big Companies’ Initiatives to Promote Mechanization in Africa? A Case Study from Zambia.” Food Policy 84: 133–45, https://doi.org/10.1016/j.foodpol.2019.03.007.Search in Google Scholar

Aker, J. C. 2011. “Dial “A” for Agriculture: A Review of Information and Communication Technologies for Agricultural Extension in Developing Countries.” Agricultural Economics 42: 631–47, https://doi.org/10.1111/j.1574-0862.2011.00545.x.Search in Google Scholar

Alston, J. M., J. M. Beddow, and P. G. Pardey. 2009. “Agricultural Research, Productivity, and Food Prices in the Long Run.” Science 325: 1209–10, https://doi.org/10.1126/science.1170451.Search in Google Scholar

Anderson, J. R. 1975. “One More or Less Cheer for Optimality.” Journal of the Australian Institute of Agricultural Science 41: 195–7, https://doi.org/10.2527/jas1975.411118x.Search in Google Scholar

Anderson, J. R. 2020. Agricultural Extension Policy: A 2020 Re-vision. Rutgers University Feed the Future Policy Research Consortium. Working Paper. http://ru-ftf.rutgers.edu/Outputs%20for%20webpage/Anderson%20WP%202020.pdf.Search in Google Scholar

Anderson, J. R., and J. L. Dillon. 1968. “Economic Considerations in Response Research.” American Journal of Agricultural Economics 50: 130–42, https://doi.org/10.2307/1237876.Search in Google Scholar

Anderson, J. R., R. W. Herdt, and G. M. Scobie. 1988. Science and Food. The CGIAR and its Partners. Washington, DC: World Bank.Search in Google Scholar

Bartlett, A., A. Andales, M. Arabi, and T. Bauder. 2015. “A Smartphone App to Extend Use of a Cloud-Based Irrigation Scheduling Tool.” Computers and Electronics in Agriculture 111: 127–30, https://doi.org/10.1016/j.compag.2014.12.021.Search in Google Scholar

Bayes, A. 2001. “Infrastructure and Rural Development: Insights from a Grameen Bank Village Phone Initiative in Bangladesh.” Agricultural Economics 25: 261–72, https://doi.org/10.1111/j.1574-0862.2001.tb00206.x.Search in Google Scholar

Bayes, A., J. Von Braun, and R. Akhter. 1999. Village Pay Phones and Poverty Reduction: Insights from a Grameen Bank Initiative in Bangladesh. Bonn, Germany: University of Bonn. ZEF Discussion Paper on Development Policy 8.Search in Google Scholar

Bennett, R. M., Y. Ismael, S. Morse, and U. S. Kambhampati. 2004. “Economic Impact of Genetically Modified Cotton in India.” AgBioforum 7: 96–100.Search in Google Scholar

Binswanger, H. P. 1986. “Agricultural Mechanization: A Comparative Historical Perspective.” The World Bank Research Observer 1: 27–56, https://doi.org/10.1093/wbro/1.1.27.Search in Google Scholar

Birner, R., T. Daum, and C. Pray. 2020. “Who Drives the Digital Revolution in Agriculture? A Worldwide Review of Supply-Side Trends, Players, and Challenges.” Applied Economic Perspectives and Policy (Epub ahead of print).10.1002/aepp.13145Search in Google Scholar

Business Roundtable. 2019. Purpose of a Corporation. Washington, DC: Business Rountable.Search in Google Scholar

Byerlee, D., and S. Haggblade. 2014. “African Food Systems to 2030: Toward Inclusive Business Models for Provisioning Africa.” In Frontiers in Food Policy: Perspectives on Sub-Saharan Africa, edited by W. P. Falcon, and R. L. Naylor, 509–33. Palo Alto, CA: CreateSpace Publishing.Search in Google Scholar

Chianca, T., L. Balcom, and K. Robertson. External Impact Evaluation of Heifer International in Nepal. Kalamazoo, MI: The Evaluation Center, Western Michigan University.Search in Google Scholar

Dardak-Rozhan, A., and F. Quoquab. 2015. “Urea-Molasses Mineral Block: It’s Time to Make a Decision.” Emerald Emerging Markets Case Studies 5: 1–8, https://doi.org/10.1108/eemcs-07-2014-0189.Search in Google Scholar

Donadeu, M., N. Nwankpa, B. Abela-Ridder, and B. Dungu. 2019. “Strategies to Increase Adoption of Animal Vaccines by Smallholder Farmers with Focus on Neglected Diseases and Marginalized Populations.” PLoS Neglected Tropical Diseases 13: e0006989, https://doi.org/10.1371/journal.pntd.0006989.Search in Google Scholar

Duncan, A. J., M. Peters, C. S. Jones, R. Schultze-Kraft, P. K. Thornton, N. Teufel, J. Hanson, and J. McIntire. 2020. “The Impact of Research on Use of Planted Forages in Tropical Smallholder Systems by CGIAR Centres.” In The Impact of Research at the International Livestock Research Institute, edited by Y. J. McIntire and D. Grace. Wallingford, UK: CABI.10.1079/9781789241853.0450Search in Google Scholar

DuPontPioneer. 2020. https://www.pioneer.com/home/site/about/business/commitment/sustainability/.Search in Google Scholar

Evenson, R. E., C. Pray, and M. W. Rosegrant. 2018. Agricultural Research and Productivity Growth in India. Washington, DC: International Food Policy Research Institute (IFPRI).Search in Google Scholar

Fuglie, K. 2016. “The Growing Role of the Private Sector in Agricultural Research and Development Worldwide.” Global Food Security 10: 29–38, https://doi.org/10.1016/j.gfs.2016.07.005.Search in Google Scholar

Fuglie, K., M. Gautam, A. Goyal, and W. F. Maloney. 2019. Harvesting Prosperity: Technology and Productivity Growth in Agriculture. Washington, DC: World Bank.10.1596/978-1-4648-1393-1Search in Google Scholar

Fuglie, K., P. Heisey, J. King, C. Pray, K. Day-Rubenstein, D. Schimmelpfennig, S. L. Wang, and R. Karmarkar-Deshmukh. 2011. Research Investments and Market Structure in the Food Processing, Agricultural Input, and Biofuel Industries Worldwide. Washington, DC: USDA-ERS.10.2139/ssrn.2027051Search in Google Scholar

Fuglie, K., S. L. Wang, and E. Ball. 2012. Productivity Growth in Agriculture: An International Perspective. Wallingford, UK: CABI.10.1079/9781845939212.0000Search in Google Scholar

Gollin, D., L. Probst, and E. Brower. 2018. Assessing Poverty Impacts of Agricultural Research: Methods and Challenges for CGIAR. Rome, Italy: Independent Science and Partnership Council (ISPC).Search in Google Scholar

Gouse, M. 2012. “GM Maize as Subsistence Crop: The South African Smallholder Experience.” AgBioforum 15: 163–74.Search in Google Scholar

Gouse, M., D. Sengupta, P. Zambrano, and J. F. Zepeda. 2016. “Genetically Modified Maize: Less Drudgery for Her, More Maize for Him? Evidence from Smallholder Maize Farmers in South Africa.” World Development 83: 27–38, https://doi.org/10.1016/j.worlddev.2016.03.008.Search in Google Scholar

Haggblade, S., B. Minten, C. Pray, T. Reardon, and D. Zilberman. 2017. “The Herbicide Revolution in Developing Countries: Patterns, Causes, and Implications.” European Journal of Development Research 29: 533–59, https://doi.org/10.1057/s41287-017-0090-7.Search in Google Scholar

International Fund for Agricultural Development (IFAD). 2016. Rural Development Report 2016. Rome: IFAD.Search in Google Scholar

International Service for the Acquisition of Agri-Biotech Applications (ISAAA). 2017. “Global Status of Commercialized Biotech/GM Crops in 2017: Biotech Crop Adoption Surges as Economic Benefits Accumulate in 22 Years.” In ISAAA Brief 53-2017. International Service for the Acquisition of Agri-Biotech Applications (ISAAA). Ithaca, NY: Cornell University.Search in Google Scholar

Jespersen, K. S., I. Kelling, S. Ponte, and F. Kruijssen. 2014. “What Shapes Food Value Chains? Lessons from Aquaculture in Asia.” Food Policy 49: 228–40, https://doi.org/10.1016/j.foodpol.2014.08.004.Search in Google Scholar

Kaplan, R. M., and A. N. Vidyashankar. 2012. “An Inconvenient Truth: Global Worming and Anthelmintic Resistance.” Veterinary Parasitology 186: 70–8, https://doi.org/10.1016/j.vetpar.2011.11.048.Search in Google Scholar

Kathage, J., M. Kassie, B. Shiferaw, and M. Qaim. 2015. “Big Constraints or Small Returns? Explaining Nonadoption of Hybrid Maize in Tanzania.” Applied Economic Perspectives and Policy 38: 113–31, https://doi.org/10.1093/aepp/ppv009.Search in Google Scholar

Kathage, J., and M. Qaim. 2012. “Economic Impacts and Impact Dynamics of Bt Cotton in India.” Proceedings of the National Academy of Sciences 109: 11652, https://doi.org/10.1073/pnas.1203647109.Search in Google Scholar

Klümper, W., and M. Qaim. 2014. “A Meta-Analysis of the Impacts of Genetically Modified Crops.” PLoS One 9: e111629, https://doi.org/10.1371/journal.pone.0111629.Search in Google Scholar

Luhmann, H., and L. Theuvsen. 2016. “Corporate Social Responsibility in Agribusiness: Literature Review and Future Research Directions.” Journal of Agricultural and Environmental Ethics 29: 673–96, https://doi.org/10.1007/s10806-016-9620-0.Search in Google Scholar

Lynam, J. K., and D. Byerlee. 2017. Forever Pioneers–CIAT: 50 Years Contributing to a Sustainable Food Future…and Counting. Cali, Colombia: California International Center for Tropical Agriculture (CIAT).Search in Google Scholar

Matuschke, I., R. R. Mishra, and M. Qaim. 2007. “Adoption and Impact of Hybrid Wheat in India.” World Development 35: 1422–35, https://doi.org/10.1016/j.worlddev.2007.04.005.Search in Google Scholar

Morris, M., V. A. Kelly, R. J. Kopicki, and D. Byerlee. 2007. Fertilizer Use in African Agriculture. Washington, DC: The World Bank.10.1596/978-0-8213-6880-0Search in Google Scholar

Nagarajan, L., C. E. Pray, and A. Naseem. 2015. “Empirical Analysis on the Impact of Private-Sector R&D on Cotton Productivity in India.” AgBioforum 18: 182–92.Search in Google Scholar

Narrod, C. A. and K. O. Fuglie. 2000. “Private Investment in Livestock Breeding with Implications for Public Research Policy.” Agribusiness 16: 457–70, https://doi.org/10.1002/1520-6297(200023)16:4<457::aid-agr5>3.0.co;2-7.10.1002/1520-6297(200023)16:4<457::AID-AGR5>3.0.CO;2-7Search in Google Scholar

Naseem, A., S. W. Omamo, and D. J. Spielman. 2006. The Private Sector in Agricultural R&D: Policies and Institutions to Foster its Growth in Developing Countries. Washington, DC: International Food Policy Research Institute (IFPRI).Search in Google Scholar

Naseem, A., D. J. Spielman, and S. W. Omamo. 2010. “Private-Sector Investment in R&D: A Review of Policy Options to Promote its Growth in Developing-Country Agriculture.” Agribusiness 26: 143–73, https://doi.org/10.1002/agr.20221.Search in Google Scholar

Nhemachena, C. R. 2018. Biological Innovation in South African Agriculture: Economics of Wheat Varietal Change, 1950–2012. Pretoria, South Africa: University of Pretoria.Search in Google Scholar

Olmstead, A. L., and P. W. Rhode. 1995. “Beyond the Threshold: An Analysis of the Characteristics and Behavior of Early Reaper Adopters.” Journal of Economic History 55: 27–57, https://doi.org/10.1017/s0022050700040560.Search in Google Scholar

Pannell, D. J. 2006. “Flat Earth Economics: The Far-Reaching Consequences of Flat Payoff Functions in Economic Decision Making.” Applied Economic Perspectives and Policy 28: 553–66, https://doi.org/10.1111/j.1467-9353.2006.00322.x.Search in Google Scholar

Pardey, P. G., J. M. Alston, and C. Chan-Kang. 2013. “Public Agricultural R&D over the Past Half Century: An Emerging New World Order.” Agricultural Economics 44: 103–13, https://doi.org/10.1111/agec.12055.Search in Google Scholar

Pardey, P. G., J. M. Alston, C. Chan-Kang, T. M. Hurley, R. S. Andrade, S. P. Dehmer, K. Lee, and X. Rao. 2017. “The Shifting Structure of Agricultural R&D: Worldwide Investment Patterns and Payoffs.” In From Agriscience to Agribusiness: Theories, Policies and Practices in Technology Transfer and Commercialization, edited by N. Kalaitzandonakes, E. G. Carayannis, E. Grigoroudis, and S. Rozakis, 13–39. Cham, Switzerland: Springer.10.1007/978-3-319-67958-7_2Search in Google Scholar

Pardey, P. G., J. M. Beddow, T. M. Hurley, T. K. M. Beatty, and V. R. Eidman. 2014. “A Bounds Analysis of World Food Futures: Global Agriculture through to 2050.” Australian Journal of Agricultural and Resource Economics 58: 571–89, https://doi.org/10.1111/1467-8489.12072.Search in Google Scholar

Poetz, K., R. Haas, and M. Balzarova. 2013. “CSR Schemes in Agribusiness: Opening the Black Box.” British Food Journal 115: 47–74, https://doi.org/10.1108/00070701311289876.Search in Google Scholar

Pray, C. E., and K. Fuglie. 2015. “Agricultural Research by the Private Sector.” Annual Review of Resource Economics 7: 399–424, https://doi.org/10.1146/annurev-resource-100814-125115.Search in Google Scholar

Pray, C. E., and L. Nagarajan. 2010. “Price Controls and Biotechnology Innovation: Are State Government Policies Reducing Research and Innovation by the Ag Biotech Industry in India?” AgBioforum 13: 297–307.Search in Google Scholar

Pray, C. E., and L. Nagarajan. 2014. “The Transformation of Indian Agricultural Input Industries: Has it Increased Agricultural R&D?” Agricultural Economics 45: 145–56, https://doi.org/10.1111/agec.12138.Search in Google Scholar

Pray, C. E., and L. Nagarajan. 2012. Innovation and Research by Private Agribusiness in India. Washington, DC: International Food Policy Research Institute (IFPRI).Search in Google Scholar

Pray, C. E., and B. Ramaswami. 2001. “Liberalization’s Impact on the Indian Seed Industry: Competition, Research, and Impact on Farmers.” International Food and Agribusiness Management Review 2: 407–20.10.1016/S1096-7508(01)00038-6Search in Google Scholar

Pray, C. E., P. Bengali, and B. Ramaswami. 2005. “The Cost of Biosafety Regulations: The Indian Experience.” Quarterly Journal of International Agriculture 44: 267–89.Search in Google Scholar

Pray, C. E., J. Huang, R. Hu, Q. Wang, B. Ramaswami, and P. Bengali. 2006a. “Benefits and Costs of Biosafety Regulation in India and China.” In Regulating Agricultural Biotechnology: Economics and Policy, edited by R. E. Just, J. M. Alston, and D. Zilberman, 481–508. Boston, MA: Springer.10.1007/978-0-387-36953-2_22Search in Google Scholar

Pray, C. E., B. Ramaswami, J. Huang, R. Hu, P. Bengali, and H. Zhang. 2006b. “Costs and Enforcement of Biosafety Regulations in India and China.” International Journal of Technology and Globalisation 2: 137–57, https://doi.org/10.1504/ijtg.2006.009131.Search in Google Scholar

Pray, C. E., W. A. Masters, and S. Ayoub. 2017. Impacts of Agricultural Research on Poverty, Malnutrition and Resilience. Washington, DC: USAID.Search in Google Scholar

Preston, T. R., and R. A. Leng. 1987. Matching Ruminant Production Systems with Available Resources in the Tropics and Sub-tropics. Armidale, New South Wales: Penambul Books.Search in Google Scholar

Pyburn, R., and J. Woodhill. 2015. Dynamics of Rural Innovation: A Primer for Emerging Professionals. Amsterdam: Royal Tropical Institute.Search in Google Scholar

Qaim, M. 2003. “Bt Cotton in India: Field Trial Results and Economic Projections.” World Development 31: 2115–27, https://doi.org/10.1016/j.worlddev.2003.04.005.Search in Google Scholar

Roumasset, J. A., M. W. Rosegrant, U. N. Chakravorty, and J. R. Anderson. 1989. “Fertilizer and Crop Yield Variability: A Review.” In Variability in Grain Yields: Implications for Agricultural Research and Policy in Developing Countries, edited by J. R. Anderson, and P. B. R. Hazell, 223–33. Baltimore, MD: Johns Hopkins University Press.Search in Google Scholar

Roy, R. N., A. Finck, G. J. Blair, and H. L. S. Tandon. 2006. Plant Nutrition for Food Security: A Guide for Integrated Nutrient Management, FAO Fertilizer and Plant Nutrition Bulletin, Vol. 16. Rome: FAO.Search in Google Scholar

Rutland, D., and J. Polo. 2005. Fertilizer Dealer Handbook: Products, Storage, and Handling. Muscle Shoals, AL: IFDC.Search in Google Scholar

Subramanian, A., and M. Qaim. 2010. “The Impact of Bt Cotton on Poor Households in Rural India.” Journal of Development Studies 46: 295–311, https://doi.org/10.1080/00220380903002954.Search in Google Scholar

Syngenta. 2020. https://www.syngenta.com/how-we-do-it/research-and-development.Search in Google Scholar

Trenkel, M. E. 2010. Slow- and Controlled-Release and Stabilized Fertilizers: An Option for Enhancing Nutrient Use Efficiency in Agriculture. Paris: IFA.Search in Google Scholar

Tribe, D. E. 1991. Doing Well by Doing Good. Agricultural Research: Feeding and Greening the World. Leichhardt, New South Wales: Pluto Press.Search in Google Scholar

Wang, S. L., P. W. Heisey, W. E. Huffman, and K. O. Fuglie. 2013. “Public R&D, Private R&D, and U.S. Agricultural Productivity Growth: Dynamic and Long-Run Relationships.” American Journal of Agricultural Economics 95: 1287–93, https://doi.org/10.1093/ajae/aat032.Search in Google Scholar

World Bank. 2006. Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of Research Systems. Washington, DC: World Bank.Search in Google Scholar

World Bank. 2007. World Development Report 2008: Agriculture for Development. Washington, DC: World Bank.Search in Google Scholar

World Bank. 2017. ICT in Agriculture: Connecting Smallholders to Knowledge, Networks, and Institutions. Updated Edition. Washington, DC: World Bank. https://doi.org/10.1596/978-1-4648-1002-2.Search in Google Scholar

Zaidi, P. H., M. T. Vinayan, and M. Blümmel. 2013. “Genetic Variability of Tropical Maize Stover Quality and the Potential for Genetic Improvement of Food-Feed Value in India.” Field Crops Research 153: 94–101, https://doi.org/10.1016/j.fcr.2012.11.020.Search in Google Scholar

Received: 2021-02-05
Accepted: 2021-02-10
Published Online: 2021-02-25

© 2021 Walter de Gruyter GmbH, Berlin/Boston

Downloaded on 27.1.2023 from https://www.degruyter.com/document/doi/10.1515/jafio-2021-0007/html
Scroll Up Arrow