Ex-ante analysis of economic returns from biological control of coconut mite in Benin and Tanzania: a market chain perspective
Loading...
Date
2012
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
The economic impacts resulting from the biological control of coconut mite in Benin
and Tanzania are scrutinized using an ex ante analytical framework. The study
sought to assess the empirical evidence about the benefits of biological control of
coconut mite being implemented in the selected coconut growing areas in the two
countries. The study also sought to enrich the knowledge base needed for
formulating policies that will develop the coconut value chains in these two
countries and others facing similar conditions. Results from the economic surplus
model show that biological control will produce a welfare gain of US$15 5213.4 in
Benin, whereas in Tanzania technology will create welfare gains of USS 33 47006
per year. The estimated discounted economic returns- expressed as Net Present
Values (NPV) varied a great deal with varying interest rate. Considered at a discount
rate of 12% for the period 2008-2027, Net Present Value was about US$ 20 7721 in
Benin, and US$ 23 5611 in Tanzania. The Internal Rates of Return (IRR) or break
even discount rates are substantially high; being 13.21% in Benin and 52% in
Tanzania respectively. The analysis of current coconut marketing chain shows that
producers receive only 17% and 8% of the prices paid by consumers in Benin and
Tanzania respectively. The coconut subsector is hampered by challenges that range
from production, processing to marketing. Despite these challenges there are
possibilities to develop coconut value chains in these countries if critical challenges
are addressed. Areas that need attention for developing the coconut subsector
include; (i) increasing productivity and -production at the farm level, (ii) to achieve
increased production, the industry should expand the planting and replanting
programme so that supply increases to feed growing markets. Apart from renovation of old coconut plantations, research efforts through public support should be
directed toward improving low performing coconut varieties as well as sustaining
the success of biological control of coconut mite, (iii)
Strengthening farmers’
organizations/platforms to enable them to undertake collective action for efficient
marketing of their products, improved bargaining power for better prices with their
buyers, and better coordination in obtaining available services and resources from
the government, NGOs and the private sectors may also contribute to improving the
sub-sector.
Description
Thesis
Keywords
Ex-ante analysis, Economic returns, Biological control, Coconut mite, Market chain perspective, Benin, Tanzania