Biotechnology in Africa: the Adoption and Economic Impacts of Bt Cotton in the Makhathini Flats, Republic of South Africa

The research intends to shed some light on the polarised debate about the use of agricultural biotechnology in the developing world, especially in Africa. The research reported here charts the pattern of smallholder adoption and the agronomic/economic impact in the first two seasons of the release of a genetically-modified (GM) crop – Bt cotton – in the Republic of South Africa. The paper discusses a number of issues concerning the uptake of the technology. The farmers who adopted the Bt cotton variety benefited from the technology. The increased in yields and reduction in pesticide outweighed the higher seed cost, so that the gross margins were also considerably higher for adopters especially in the wet second season.. The result gives considerable cause for cautious optimism regarding the economic impact of Bt cotton. However, further years of data are required before final judgement of the economic benefits of the GM crop can be made.