Work

Fungicide Cost Reduction with Soybean Rust-Resistant Cultivars in Paraguay: A Supply and Demand Approach

Year: 2021

Type: article

Abstract: Soybean rust (SBR) is one of the most serious diseases for Paraguay’s economy. To avoid excessive financial losses due to SBR, farmers utilize fungicides. Increasing fungicide costs are, therefore, becoming a threat to farmers’ incomes. Developing SBR-resistant cultivars is a possible solution to this problem. To investigate the effects of SBR-resistant cultivars on soybean farmers in Paraguay, we constructed a model for the supply and demand of soybeans considering yields, cultivated area, changes in the stock quantity of soybeans, exports of soybeans and soybean products, feed demand for soybean cake and price linkage functions. We established three scenarios: an SBR pandemic in which fungicides become ineffective (Scenario 1) and the adoption of SBR-resistant cultivars in 33% (Scenarios 2) and 75% (Scenarios 3) of cultivated areas. The estimation of these three scenarios demonstrates that SBR-resistant cultivar adoption will significantly reduce current fungicide costs for farmers by 112–253 million United States dollars (USD). The potential benefits of the widespread dissemination of SBR-resistant cultivars are also considered in terms of economic disparities and environmental risks. To establish a more sustainable agricultural industry, earlier dissemination of such cultivars is required.

Source: Sustainability

DOI: 10.3390/su13020887

Authors: Yuki Ishikawa-Ishiwata, Jun Furuya

Institutions: Ibaraki University, Japan International Research Center for Agricultural Sciences

Language: English

Topic: Agricultural economics and policies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

SDGs: Zero hunger, Responsible consumption and production

Open Access status: gold

Estimated APC paid: $2,052