48 



Agriculfiiral Research and Produciivity 



to support research stations in the sugar-producing colonies. 

 From their point of view, these investments paid off quite 

 handsomely. 



Experiment stations for sugarcane research were also estab- 

 lished in countries where public support of general agricultural 

 research was limited or nonexistent. The support for these sta- 

 tions came from private grower organizations. The private 

 growers were aware of the changes in the comparative advantage 

 that new varieties (and other technology) would give them in the 

 international market. They were also aware of the comparative 

 disadvantage resulting from improved yields and lowered costs of 

 production that other countries might realize. Although some 

 stage 2 cane-breeding was undertaken by large private plantations 

 in Hawaii, Cuba, and Java, it soon became clear that it was not 

 profitable to make large investments in private effort because the 

 plantation was unable to capture more than a small fraction of the 

 benefits.^ It is, of course, also true that sugar producers will not 

 capture the full benefits from improved varieties. In fact, most are 

 likely to be realized by consumers. A recognition of this has 

 resulted in public support for modern cane experiment stations. 



Table 3.5: Mean and Variance, International 

 Cane Yields, Selected Periods 



6. See Evenson (1968) for a discussion of the incentives for public support and 

 conduct of agricultural research. 



