An Economic Analysis of Wheat Breeding Programs for Some Iranian Irrigated Bread Wheat Varieties

Abstract

The objectives of this research were to determine the impacts of irrigated wheat breeding in reducing costs, Net Present Value (NPV), Cost-Benefit Analysis (CBA) and Internal Rate of Return (IRR) for Mehregan, Shush, Baharan and Narin bread wheat varieties, released in 2014. Replacement indices for Chamran, Shiroodi, Bahar, Morvarid, Zarrin varieties with international origin, and Pishtaz, Alvand, Pishgam varieties with national origins were also assessed. To estimate the profitability criteria’s and replacement index of varieties, Ex-ante & Ex-post methods and Weighted Average Age were used. The results revealed that the mean reduction costs of released four irrigated bread wheat varieties (Mehreghan, Shush, Baharan, Narin) equals 406.9 Iranian Rials. The mean of shift in supply function of these varieties is 4.67%. Total costs of research for three varietis (Mehregan, Shush, Baharan) with international origin, and Narin variety with national origin, were 96500 and 21500 million Iranian Rials, respectively. Moreover, NPV for Mehregan, Shush, Baharan and Narin were 266200, 211000, 469200 and 415200 million Iranian Rials, respectively. Benefit Cost Ratio (BCR) for Mehregan, Shush, Baharan and Narin were 4.6, 1.5, 12.2 and 7.7, respectively. IRR for Mehregan, Shush, Baharan and Narin were 47.5%, 28.5%, 72.9% and 51.1%, respectively. The mean of weighted Average Age of irrigated bread wheat varieties over the period of 2004-2016, was 7.72 years. Based on the need and purchase scenarios, the average of replacement rate for Chamran were calculated as 3.8 and 6 years, respectively.