The Distribution of Benefits from Bt Cotton Adoption in South Africa

Abstract

Technology adoption can create income benefits for large and small-scale producers, input suppliers and consumers in developing countries. The circumstances under which this income creation can take place are shown to depend on a wide range of factors applicable across dualistic agricultural practices in South Africa. Whether for large commercial farms or small-scale agriculture, four factors influence the creation of surplus. World prices, subsidies in developed countries, domestic market structure, and the presence of substitute import markets each play a role in the distribution of rents from Bt cotton, an appropriate technology for South African farmers.