The Use of GM Crops in Developing Countries
Case study 1: Non-food crops Bt cotton in China and South Africa
3.28 Cotton attracts a variety of serious pests which farmers seek to control by the use of chemicals. One example of these pesticides is based on the naturally-occurring soil bacterium Bacillus thuringiensis (Bt). There are a number of strains of Bt, each of which produces a slightly different protein. All cause a toxic reaction in the guts of certain insects or pests when they digest the protein. While such a reaction does not occur in humans, it strongly affects cotton bollworm, maize borers or potato beetles, which devastate many crops worldwide. The toxic effect of Bt-derived compounds has been widely used by conventional and organic farmers for several decades.26 Usually, farmers apply the toxin by spraying the crops. However, this method of application is relatively imprecise and repeated sprayings over an extended period of time are required to control pests effectively.
3.29 The attraction of using the Bt toxin is that it is generally not harmful to beneficial insects that are closely related to pest species. These insects, which would otherwise have been killed by the application of conventional chemical pesticides, are left unaffected due to the selectivity of Bt. To preserve this useful quality, and to control pests more effectively, researchers have produced genetically modified crop varieties which can express the relevant proteins that are toxic to selected insect pests. While the protein is usually produced throughout the crop, more recent developments also allow it to be expressed in specific parts of the plants, such as the roots.27
3.30 The major advantage of Bt crops is the reduction in the levels of pesticides used by farmers. This can have considerable ecological benefits, as excessive use of pesticides can be harmful to the environment. There are also potential economic benefits: in 2001, 20% of pesticides applied globally were used on cotton, at a total cost of US$1.7 billion.28 Significant reductions can also have health-related benefits for farm workers who apply pesticides or insecticides, or who work in fields in which these have been applied (see also paragraph 3.55). Whether or not the use of Bt crops leads to overall savings for farmers will depend on a variety of factors, such as the price of seed, licensing agreements with the producer of the seed, costs of insecticides and global cotton prices.
3.31 In China, researchers at the public sector Chinese Academy of Agricultural Sciences (CAAS), in cooperation with regional academies, have successfully developed several Bt cotton varieties for domestic use. These varieties have initially been sold by the national seed network. However, due to a reform of the national seed law in 2000, private seed companies now operate in many provinces, enabling farmers to choose from a wider variety of GM and non-GM seed.29 By 2002, half the cotton grown in China was in the form of Bt varieties. Reports have highlighted three main advantages:
- The average application of pesticides fell by as much as 50 kilograms per hectare, a reduction of between 60-80% in comparison to 2001.30 This implied considerable financial savings for approximately 3.5 million farmers who managed small farms of an average size of between 0.5-2 hectares (see Table 3.1).31
- Yields of Bt cotton were estimated to have increased by 10% in 2001, in comparison to farmers who grew non-Bt cotton.32
- As in many other developing countries, pesticides in China are often applied in the absence of protective clothing. The use of Bt cotton seems to have led to reductions of instances in which farmers suffered toxic effects related to exposure to pesticides. Such events were reported to be reduced by 60%, compared with farmers who grew non-Bt cotton.33
| Cost | Bt | Non-Bt |
| Output revenue | 1277 | 1154 |
| Non-labour costs | ||
| - Seed | 78 | 18 |
| - Pesticides | 78 | 186 |
| - Chemical fertilizer | 162 | 211 |
| - Organic fertilizer | 44 | 53 |
| - Other costs | 82 | 65 |
| Labour | 557 | 846 |
| Total costs | 1000 | 1379 |
| Net revenue | 277 | -255 |
| Source: Pray CE et al. (2002) Five years of Bt cotton in China - the benefits continue, Plant J 31: 42330. |
3.32 Similar improvements in yield were achieved in the Makhathini Flats area of KwaZulu-Natal, South Africa, where a well developed extension system is in place.34 The private company VUNISA Cotton is the sole supplier of seed, agrochemicals and support services. Through its extension officers, it offers several GM as well as non-GM varieties. VUNISA also provides credit for farmers and buys their harvest, competing with the company NSK. Farmers are members of farming associations, which hold regular meetings to provide support and to discuss mutual concerns.35 In 1999/2000, 12% of 1376 cotton farmers who mostly managed small farms of an average size of 1.7 hectares adopted Bt cotton. This rose to 60% the following year. Ninety five per cent are expected to have grown Bt cotton in 2001/2002. Due to increased yields, and reduced costs of pesticides and labour, farmers were able to augment their gross margin by 11% in the first season, and 77% in the second, compared to farmers growing non-Bt cotton. These increases were achieved despite the fact that the Bt cotton seeds were twice the cost of conventional seeds.36 The use of Bt cotton is also said to have led to savings of approximately 1,500 litres of water per farm.37
Footnotes26 James C (2002) Global Review of Commercialized Transgenic Crops: 2001, Feature Bt cotton ISAAA Brief No. 26 (Ithaca, NY: ISAAA).
27 Kota M et al. (1999) The Next Generation of Bt Plants? Auburn University. Available: http://www.ag.auburn.edu/aaes/communications/highlights/spring99/btplants.html. Accessed on: 14 Oct 2003.
28 James C (2002) Global Review of Commercialized Transgenic Crops: 2001, Feature Bt cotton ISAAA Brief No. 26 (Ithaca, NY: ISAAA).
29 Huang et al. (2002) Bt cotton benefits, costs, and impacts in China, AgBioForum 5: 15366; James C (2001) Global Review of Commercialized Transgenic Crops: 2001 ISAAA Brief No. 24 (Ithaca, NY: ISAAA).
30 Huang J et al. (2002) Plant biotechnology in China, Science 295: 6746.
31 James C (2002) Preview, Global Status of Commercialized Transgenic Crops: 2002 ISAAA Brief No. 27 (Ithaca, NY: ISAAA). There is evidence that many Chinese farmers growing non-Bt cotton apply excessive amounts of pesticides, see Shankar B and Thirtle C (2003) Pesticide Productivity and Transgenic Cotton Technology: The South African Smallholder Case, Working Paper, Dept. of Agricultural & Food Economics, University of Reading. It would therefore be wrong to attribute the total reduction to the use of Bt cotton alone. Some reduction could also have been achieved by means of promoting a better understanding of the appropriate amounts of pesticides for use in cotton. This highlights the importance of training and provision of information about pesticide use for both Bt and non-Bt crops.
32 James C (2002) Preview, Global Status of Commercialized Transgenic Crops: 2002 ISAAA Brief No. 27 (Ithaca, NY: ISAAA); Pray CE et al. (2002) Five years of Bt cotton in China - the benefits continue, Plant J 31: 42330.
33 Conway G (2003) From the Green Revolution to the Biotechnology Revolution: Food for Poor People in the 21st Century. Speech at the Woodrow Wilson International Center for Scholars Directors Forum. 12 March 2003. Available: http://www.rockfound.org/documents/566/Conway.pdf. Accessed on: 10 Oct 2003; Pray CE et al. (2002) Five years of Bt cotton in China the benefits continue, Plant J 31: 42330; Huang et al. (2002) Bt cotton benefits, costs, and impacts in China, AgBioForum 5: 15366.
34 Thirtle C, Piesse J and Jenkins L (2003) Can GM-technologies help the poor? The Impact of Bt Cotton in Makhathini Flats, KwaZulu-Natal, World Dev 31: 71732.
35 Thirtle C, Piesse J and Jenkins L (2003) Can GM-technologies help the poor? The Impact of Bt Cotton in Makhathini Flats, KwaZulu-Natal, World Dev 31: 71732.
36 Ismael Y, Bennett R and Morse S (2002) Benefits of Bt cotton use by smallholder farmers in South Africa, AgBioForum 5: 15. The disproportionate increase in the second season is a result of exceptionally heavy rainfalls. The rain washed off the pesticides applied to non-Bt cotton, which allowed for less effective control of the bollworm. Bt cotton, on the other hand, was not affected in the same way.
37 James C (2002) Preview, Global Status of Commercialized Transgenic Crops: 2002 ISAAA Brief No. 27 (Ithaca, NY: ISAAA).