Estimating returns to research investment in mango in the Philippines
1988
Librero, A.R. | Emlano, N.E. | Ocampo, M.B.
The growth of the mango industry in the country can be attributed to several technological breakthroughs. Foremost is the discovery of potassium nitrate which was widely adopted in the country. Complementary to this is the development of more effective and less hazardous pest control measures. Adoption of pest and disease control technology is also relatively high. Experiments on ethylene dibromide and methyl bromide in 1972 by BPI [Bureau of Plant Industry] led to the development of a fumigation technology which widened the market for Philippine mangoes. In the field of preservation and preserving, a new and better process of preserving fruits using osmosol drying was developed. The discovery of KNO3 and better pest and disease control measures spurred interest on fertilization. The impact of research on productivity was determined using a two-stage regression analysis. The first stage regression showed that yield/tree, volume and value of production responded positively to changes in mango prices. The increase in the price of flower inducers did not have any adverse effect on the volume and value of production indicating that the technology had become an essential component of mango production in the country. Results of the second stage regression showed that productivity is enhanced by research. The estimated IRR [Internal Rate of Return] for mango research ranged from 85-107 percent which is relatively higher than the estimated IRR for rice, corn and sugarcane research in the country. The results show a high return to research which could justify further increase in research investment considering that other aspects of the industry need to be looked into and as new problems arise. However, the thrust should not only be to increase research investment but also to provide the proper environment that will encourage farmers to adopt modern technology.
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