Yousouf Ismael
Researcher, Agricultural and Food Economics, University of Reading, Berkshire, UK
Richard Bennett
Senior Lecturer, Agricultural Economics; Director, Agricultural Economics and Policy Research Group, University of Reading, Berkshire, UK
Stephen Morse
Reader in Development Studies, Department of Geography, University of Reading, Berkshire, UK

This paper describes the results of research conducted in the Makhathini region, Kwazulu Natal, Republic of South Africa, designed to explore the economic benefits of the adoption of Bt cotton for smallholders. Results suggest that Bt cotton had higher yields than non-Bt varieties and generated greater revenue. Seed costs for Bt cotton were double those of non-Bt, although pesticide costs were lower. On balance, the gross margins (revenue – costs) of Bt growers were higher than those of non-Bt growers.

Key words: Bt cotton, economic benefits, gross margin, Republic of South Africa.