BENEFITS OF ADOPTION OF IMPROVED MAIZE SEED IN THE PUEBLA CENTRAL REGION

Abstract

Knowledge about the benefits that adoption of improved seed has on productivity in maize (Zea mays L.) is insufficient, necessitating more research on this issue. This project measured the benefit of adoption of improved seed on the welfare of maize growers in the Puebla central region which comprises Cholula, Libres and Tecamachalco districts. The solution of a spatial equilibrium model applied to the maize market was obtained, and a grouped logit model that considers the logit of the probability ratios of using improved seed against using native seed as the dependent variable was estimated. Results indicated that the adoption rate of improved seed in the Puebla Central region was 37.46 %. A decrease in the improved seed price by 5, 15 and 25 %, while holding other factors constant, would increase the adoption rate of improved maize seed by 2.2, 6.6 and 11.1 %, respectively. Those changes would increase maize yield in 0.8, 2.5 and 4.1 %, and the welfare of growers (as measured by economic surplus) would increase by generating 44, 133 and 222 million pesos, respectively. Based on these, it is recommended that the government promotes a competitive structure in the market of improved maize seed.