| Literature DB >> 35877609 |
Charity Wangithi1, Beatrice W Muriithi1, Gracious Diiro1, Thomas Dubois2, Samira Mohamed2, Michael G Lattorff3, Benignus V Ngowi4, Elfatih M Abdel-Rahman5, Mariam Adan5, Menale Kassie1.
Abstract
Using synthetic pesticides to manage pests can threaten pollination services, affecting the productivity of pollination-dependent crops such as avocado. The need to mitigate this negative externality has led to the emergence of the concept of integrated pest and pollinator management (IPPM) to achieve both pest and pollinator management, leading to complementary or synergistic benefits for yield and quality of the harvest. This paper aims to evaluate the potential economic and welfare impact of IPPM in avocado production systems in Kenya and Tanzania. We utilize both primary and secondary data and employed the economic surplus model. On average the potential economic gain from the adoption of IPPM is US$ 66 million annually in Kenya, with a benefit-cost ratio (BCR) of 13:1, while in Tanzania US$ 1.4 million per year, with a BCR of 34:1. The potential benefits from IPPM intervention gains are expected to reduce the number of poor people in Kenya and Tanzania by 10,464 and 1,255 people per year respectively. The findings conclude that policies that enhance the adoption of IPPM can fast-track economic development and therefore improve the livelihoods of various actors across the avocado value chain.Entities:
Mesh:
Year: 2022 PMID: 35877609 PMCID: PMC9312383 DOI: 10.1371/journal.pone.0271241
Source DB: PubMed Journal: PLoS One ISSN: 1932-6203 Impact factor: 3.752
Fig 1A conceptualization of induced supply shift due to integrated pest and pollinator management intervention in a small open economy. Source: Adapted from [27].
Parameters for the economic surplus model used to estimate the impact of integrated pest and pollinator management in Kenya and Tanzania.
| Parameter | Data | Source |
|---|---|---|
| The elasticity of supply (ɛ) | 0.8 | [ |
| Elasticity of demand | -0.2 | [ |
| Expected yield gain IPM | 40.9% | [ |
| Expected yield gain pollinators | 20.7% | [ |
| Expected cost reduction-IPM | 30% | [ |
| Probability of success | 70% (60% Tanzania) | [ |
| Real discount rate | 8% (11% Tanzania) | Commercial Banks (2020) |
| AgriGDP | US$ 1932 million (Kenya) US$ 1533 million (Tanzania) | [ |
Total economic benefits of adopting IPM, pollinator supplementation, and IPPM in avocado production in Kenya in (‘Million US$).
|
| IPM | Pollinator supplementation | IPPM |
|---|---|---|---|
| Year | PS/TS | PS/TS | PS/TS |
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 1 | 2 | 4 |
| 2022 | 2 | 4 | 9 |
| 2023 | 4 | 9 | 18 |
| 2024 | 7 | 17 | 37 |
| 2025 | 13 | 32 | 69 |
| 2026 | 22 | 55 | 119 |
| 2027 | 34 | 83 | 183 |
| 2028 | 49 | 111 | 247 |
| 2029 | 65 | 133 | 298 |
| 2030 | 78 | 148 | 333 |
| 2031 | 87 | 158 | 357 |
| 2032 | 94 | 165 | 372 |
| 2033 | 99 | 170 | 384 |
| NPV | 222 | 446 | 996 |
| B/C | 6.6 | 10.5 | 12.9 |
| IRR | 52.8% | 68.2% | 76.2% |
PS, and TS are producer, and total surplus respectively; B/C is the benefit over cost, IRR is the internal rate of return. NPV is the net present value. Consumer surplus (CS) is zero equating PS to TS.
Total economic benefits of adopting IPM, pollinator supplementation and IPPM in avocado production in Tanzania (‘Million US$).
|
| IPM | Pollinator supplementation | IPPM |
|---|---|---|---|
| Year | PS/TS | PS/TS | PS/TS |
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 0.0001 | 0.0001 | 0.0002 |
| 2022 | 0.0001 | 0.0002 | 0.0003 |
| 2023 | 0.0003 | 0.0003 | 0.0007 |
| 2024 | 0.0005 | 0.0007 | 0.0013 |
| 2025 | 0.0010 | 0.0012 | 0.0025 |
| 2026 | 0.0018 | 0.0021 | 0.0043 |
| 2027 | 0.0027 | 0.0032 | 0.0065 |
| 2028 | 0.0036 | 0.0043 | 0.0088 |
| 2029 | 0.0043 | 0.0051 | 0.0106 |
| 2030 | 0.0047 | 0.0057 | 0.0118 |
| 2031 | 0.0050 | 0.0061 | 0.0126 |
| 2032 | 0.0053 | 0.0064 | 0.0131 |
| 2033 | 0.0054 | 0.0066 | 0.0136 |
| NPV | 0.0105 | 0.0127 | 0.0260 |
| B/C | 12.40 | 16.57 | 33.94 |
| IRR | 54.9% | 61.1% | 81.3% |
Note: PS, and TS are producer and total surplus respectively; B/C is the benefit over cost, IRR is the internal rate of return. NPV is the net present value. Consumer surplus (CS) is zero equating PS to TS.
Simulated changes in quantity produced under the IPM, pollinator supplementation, and IPPM interventions in Kenya (‘000 tonnes).
| Intervention year | IPM | Pollinator | IPPM | No R/D |
|---|---|---|---|---|
| 2019 | 364.9 | 364.9 | 364.9 | 364.9 |
| 2020 | 372.2 | 372.2 | 372.2 | 372.2 |
| 2021 | 379.9 | 380.2 | 380.8 | 379.6 |
| 2022 | 387.8 | 388.4 | 389.7 | 387.2 |
| 2023 | 396.0 | 397.4 | 400.1 | 395.0 |
| 2024 | 404.8 | 407.6 | 413.0 | 402.9 |
| 2025 | 414.4 | 419.7 | 429.8 | 410.9 |
| 2026 | 425.1 | 434.2 | 451.4 | 419.2 |
| 2027 | 437.0 | 450.2 | 476.1 | 427.5 |
| 2028 | 449.7 | 466.1 | 500.5 | 436.1 |
| 2029 | 462.6 | 480.7 | 521.7 | 444.8 |
| 2030 | 475.0 | 493.5 | 539.0 | 453.7 |
| 2031 | 486.6 | 505.2 | 553.7 | 462.8 |
| 2032 | 497.8 | 516.3 | 566.8 | 472.0 |
| 2033 | 508.5 | 527.1 | 579.2 | 481.5 |
Note: R/D refers to the Research and Development.
Fig 2A comparison of economic surplus over time between Kenya and Tanzania due to Integrated Pest and Pollinator Management intervention in avocado production.
Sensitivity analysis of key parameters for the economic surplus model.
| Kenya | Tanzania | |||||
|---|---|---|---|---|---|---|
| Parameters | TS (‘Million US$) | B/C | IRR (%) | TS (‘Million US$) | B/C | IRR (%) |
|
|
|
|
|
|
|
|
| Yield gain 50% | ||||||
| 0.5 | 1.878 | 24.3 | 99.5 | 0.048 | 62.9 | 103.2 |
| -0.5 | 0.171 | 2.2 | 28.8 | 0.005 | 5.9 | 39.2 |
| Cost reduction of 30% | ||||||
| 0.5 | 1.229 | 15.9 | 83.5 | 0.032 | 41.7 | 88.1 |
| -0.5 | 0.768 | 10.0 | 68.1 | 0.020 | 26.3 | 73.6 |
| Interest rate (8% Ke; 11% Tz) | ||||||
| 0.5 | 0.662 | 10.6 | 76.3 | 0.015 | 20.9 | 81.3 |
| -0.5 | 1.535 | 15.5 | 76.3 | 0.046 | 57.4 | 81.3 |
| Price supply elasticity 0.8 | ||||||
| 0.5 | 1.032 | 13.3 | 76.9 | 0.027 | 34.8 | 81.6 |
| -0.5 | 0.959 | 12.4 | 75.7 | 0.025 | 33.1 | 81.0 |
| Probability of success (70% Ke; 60% Tz)) | ||||||
| 100% | 1.467 | 19.0 | 89.9 | 0.045 | 58.4 | 100.3 |
| 35% (30%) | 0.480 | 6.2 | 54.4 | 0.013 | 16.6 | 61.1 |
| Max adoption level (85.9% Ke; 68.3% Tz) | ||||||
| 100% | 1.173 | 15.2 | 81.9 | 0.039 | 50.8 | 95.0 |
| 35% | 0.388 | 5.1 | 48.7 | 0.012 | 17.0 | 61.7 |
Note: TS is Total Surplus; B/C is the benefit over cost; IRR is the internal rate of return; Ke and Tz stand for Kenya and Tanzania respectively.