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I N T E R N A T I O N A L P O T A T O C E N T E R

Because of the relatively long gestation period between

investment and returns to agricultural research it takes

time to see economic impacts of this scale. And they

require sustained investments over the long term. As

Figure 1 shows, it was not until 1990 – almost 20 years

after its founding – that CIP was able to “get out of thered” with returns to successful projects exceeding the

organization’s annual budget.

By the mid-1990s CIP technologies had matured and

were generating seven times more annual returns 

than CIP’s annual expenditure. Much of this benefit

came from contributing to virus free sweetpotato seed in

China. Since then, adoption of new varieties developed

with CIP support has accelerated in the target countries

and makes up the greater part of documented impact

(Figure 1).

  These estimates are based on detailed case studies of 

adoption of an array of technologies developed by CIP and

its partners. In each case, the studies identify the source

of benefit from the use of the technology, the adoptionprofile, and the additional total value which accrues

through its use over time. Since the benefits accrue over a

long period of time and the profile of benefits varies with

technology, researchers apply a discount when summing

future benefits to calculate the net present value of the

investment.

  Table 1 presents estimated returns on investment

for various CIP technologies by crop and by region

documented in the impact studies. For example, the most

recent study of varietal change in potatoes showed that

by 2008, CIP-related varieties covered over one million

hectares worldwide. Applying a discount rate of 5% gives

a net present value of the investment in improved potato

varieties of more than $121 million.

Many people in diverse regions and societal groups

gain from CIP technologies. Beneficiaries range from

semi-subsistence women potato farmers in the East Africa

highlands to small sweetpotato producing households

in mixed crop-livestock systems in China and poor

potato consumers in Latin America. In addition, benefits

are not confined to varietal change. Both improved

seed technologies and integrated pest managementpractices also figure prominently in return on investment

calculations. (Table 1).

3I M P A C T B R I

S E R I E

NOVEMBER 20

CIP is a great investment

 The annual net benefit from CIP research estimated from impactstudies has exceeded $225 million for the past 10 years. These benefitsmostly accrue to the poor and hungry in developing countries. ForCIP donors, that is a handsome dividend, indeed. 

for reducing poverty and hunger!

-50

0

50

100

150

200

250

300

1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010

   m   i    l    l   i   o   n   U   S   D

Net Cost

Varieties

Seed

IPM

Figure 1: Net annual benefit from CIP related technology documented in impact studies

Impact brief prepared

by Graham Thiele, Guy

Hareau, Víctor Suárez,

and Valerie Gwinner.

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I N T E R N A T I O N A L P O T A T O C E N T E R

Table 1: Impact studies and estimated net present value of investment ($ millions)

Varieties Seed systemsIntegrated Crop Post-harvest utilization/Management enterprise development

Potato

Sweetpotato

Cent. Africa ($27)China ($11.9)Peru ($5.4)

World ($121)

  Tunisia ($6.4)Peru ($1.8)Peru ($0.06)

  Tunisia – ($2.1)India ($18)Vietnam – 1 ($2.1)

Egypt ($2.9)Vietnam – 2 ($5.1)

Peru ($3.0) Dom.Rep. ($1.1)Cuba ($21.7)

(Sichuan-starch, feed)(Vietnam-feed)

China ($550)

 The estimates in Table 1 are conservative. Not all success stories have been documented, nor does all CIP’s work lend

itself to economic measurement. CIP’s role in the preservation of biodiversity maintains options for varietal change for

future generations. CIP’s contributions to human capital development, and to other livelihood assets such as physical

capital and improved social cohesion, are undeniably important benefits. But quantifying these additional gains

entails extensive research. Because impacts usually occur outside the time frame of a project, special attention needs

to be given to funding impact work and developing an impact culture in planning and implementing the researchagenda.

  The trend toward lower investment in long-term global research initiatives, such as breeding, is threatening to

compromise these advances, however. Likewise, pressures from donors to produce short-term results for targeted

programs are moving investment away from up stream research that may produce the biggest impacts in the longer

run. Impact studies have an important role in demonstrating the value of this strategic research, raising awareness

and ensuring continued donor investment.

References

Chilver, A., R. El-Bedewy and A. Rizk. 1997.  True potato seed: research, diffusion, and outcomes in Egypt. InternationalPotato Center (CIP). Lima, Perú. 29 p.

Fonseca, C., Zuger, R., Walker, T.S. and Molina, J. 2002. Estudio de impacto de la adopción de nuevas variedades decamote liberadas por el INIA en la costa central, Perú. Caso del valle de Cañete. Potato Center (CIP). Lima, Perú, 2002, 24 p.

Fuglie, K., Zhang, L., Salazar, L. and Walker, T.S. 1999. Economic impact of virus-free sweetpotato planting material in

Shadong province, China. International Potato Center (CIP). Lima, Perú. 27 p.Fuglie K.O., Bich Nga, D.T., Huy Chien, D. and Thi Hoa, N. 2001.  The economic impact of true potato seed in Vietnam.International Potato Center (CIP). Lima, Perú. 24 p.

Maza, N., Morales, A., Ortiz, O., Winters, P., Alcazar, J. and Scott, G. 2000. Impacto del manejo integrado del tetuan delboniato (Cylas formicarius) en Cuba. Perú, International Potato Center (CIP). Lima, Perú. 45 p.

Thiele, G., G. Hareau, V. Suarez, E. Chujoy, M. Bonierble and L. Maldonado. 2008. Varietal change in potatoes in developingcountries and the contribution of the International Potato Center: 1972-2007.Social Sciences Working Paper. Lima, CIP: 46

Walker, T.S and Crissman, C. 1996. Case studies of the economic impact of CIP-related technology. International PotatoCenter (CIP). Lima, Perú. 157 p.

Walker, T.S., Bi, Y.P., Li, J.H., Gaur, P.C., Grande, E. 2003. Potato genetic improvement in developing countries and CIP’srole in varietal change. In: Crop Variety Improvement and its effect on productivity: The impact of international agriculturalresearch. Evenson, R.E, Gollin, D. (Eds.). CABI Publishing, Oxfordshiere, U.K. pp. 315-336.