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ECONOMIC GAINS FROM
BIOLOGICAL CONTROL
I. Abundant
empirical evidence shows that biological control, as practiced by
professionals is among the most cost effective
methods of pest control. A. Because of its highly
positive social and economic benefits, biological control should be among the
first pest control tactics to be explored.
B. Biological control workers
must not be without caution in introducing exotic organisms, which mitigates
against granting too wide a license for such introductions. Biological control is a serious endeavor
for professionals: it cannot become a
panacea for enthusiasts having little of the formal training and
understanding of the basis of this discipline. C. In pest control the
rights of society and the environment are increasingly in conflict with
private profit. Classical biological
control and other forms of natural control, plus other environmentally and
economically sound methods must fill the gap. Biological control has the best pest control record and remains
a considerable untapped future resource (Gutierrez et al. 1999). D. It is difficult to
make an analysis of costs and benefits for biological control because the
definition "biological control" has been given various meanings
(Caltagirone & Huffaker 1980, NAS 1987, Garcia et al. 1988, Gutierrez et
al. 1999). Perhaps it is appropriate
to distinguish classical and naturally occurring biological control from
other methods such as the use of pesticides derived from biological organisms
(e.g., Bacillus thuringiensis toxins, ryania,
pyrethrum, etc.), the use of sterile males, etc.). Gutierrez et al. (1999) consider periodic colonization of
natural enemies (inundative and inoculative) as an extension of biological
control. It is confusing to call
biological control any procedure of pest control that involves the use or
manipulation of a biological organism or its products as was done by
Reichelderfer (1979, 1981, 1985).
Reichelderfer's contribution has been to show how economic theory
applies to an analysis of the economic benefits of augmentative releases of
biological control agents, and in this sense the arguments are similar to
those for estimating the benefits of using pesticides or any other control
method. E. In the present
discussion of economic gains, the discipline of biological control as an
applied activity, concerns itself with the introduction and conservation of
natural enemies that become, or are essential components of self-generating
systems in which the interacting populations (principally predator/prey or
parasitoid/host) are regulated. In
biological control of pests the manipulated organisms include predators,
parasitoids, pathogens and competitors.
No judgments are made concerning the merits of other procedures,
except to note those which encourage environmentally safe and economically
sound approaches. Biological control
of pests has been implemented worldwide, in environments that are
climatically, economically and technologically diverse (Clausen 1978). The net benefits derived from this tactic
as a whole are difficult to quantify with any degree of accuracy. However, the considerable number of cases
that were successful, and continue to be so, and the fact that no
environmental damage has been detected in the great majority of them make
this tactic a very desirable one.
Nevertheless, the classical biological control approach (introduction of exotic natural enemies)
has been challenged on the basis of possible negative effect on native
organisms. For example, Howarth
(1983) proposed that in Hawaii the introduction of some natural enemies has
adversely affected the native fauna, and that to restore the ecological
situation by removal of these organisms is nearly impossible. This points to the vexing aspect of
possible environmental risk in using exotic biological control agents (Legner
1986a,b). It has been accepted that
these organisms, when introduced according to restrictions established by
regulatory agencies (Animal and Plant Health Inspection Service in the United
States) are considered to pose no environmental hazard. Routinely, risk is recognized when
considering candidate natural enemies to control weeds. A comprehensive discussion on this aspect
of biological control is given by Turner (1985), and Legner (1986a,b). F. The biological impact
of exotic biological control agents on target pests is difficult to assess
and few cases have been rigorously documented (Luck et al. 1988), which makes
economic analysis correspondingly difficult.
Even more demanding would be to include in the equation the monetary
value of the side effects as referred to by Howarth (1983) and the positive
ones (e.g., the benefit that society derives from the reduction in or the
elimination of the use of objectionable pesticides) as a result of the
introduction of an effective natural enemy. II. Biological
Control From Naturally Occurring Organisms A. The economic benefits
of naturally occurring biological control have been repeatedly demonstrated
in those cases where secondary pests became unmanageable as a result of
overuse of chemical pesticides to control primary pests. B. DeBach (1974) clearly
showed the effect of DDT in the disruptions of pests in many crops. The rice brown plant hopper, Nilaparvata lugens, in southeastern Asia
continued to be a pest as a result of it overcoming the new varieties'
resistance and the use of pesticides to control it. C. Host plant resistance
may be overcome by natural selection of new biotypes of phytophages in the
field in less than seven years (Gould 1986).
Kenmore (1980) and Kenmore et al. (1986) showed that the rice brown planthopper
is a product of the green revolution wherein the increased prophylactic use
of pesticide destroyed its natural enemies and caused the secondary outbreak
of this pest. Recognition of this
problem recently led to the banning of many pesticides in rice in Indonesia
(Gutierrez et al. 1999). This
prohibition has resulted in no losses in rice yields. Most of the pests in cotton in the San
Joaquin Valley of California (Burrows et al. 1982, Ehler et al. 1973, 1974;
Eveleens et al. 1973, Falcon et al. 1971), the Cañete and other valleys in
Peru (Lamas 1980), Australia (Room et al. 1981), Mexico (Adkisson 1972),
Sudan (von Arx et al. 1983) and other areas are pesticide induced. This often causes these pests to become
more important than the original target pests. These examples substantiate the benefits of naturally occurring
natural enemies in controlling pests.
Furthermore, these benefits are largely free of cost, unless special
procedures are required to either augment or reintroduce them (Gutierrez et
al. 1999). III. Estimation of the
Benefits and Costs of Classical Biological Control A. The costs of a
classical biological control project (C)
may be calculated easily. One simply sums
the cost of the base line research, the cost of foreign exploration,
shipping, quarantine processing, mass rearing, field releases and post
release evaluation. The last cost
must be evaluated judiciously as pursuing academic interests may push these costs
beyond those required by the practical problem at hand. Harris (1979) proposed that costs be
measured in scientist years (SY),
with one SY being the
administrative and technical support costs for one scientist for one
year. For example, the U. S. Department
of Agriculture estimated that one SY
in biological control cost $80,000 in 1976 (Andrés 1977). B. DeBach (1974) gave a
rough estimate of the cost of importing natural enemies at the University of
California. He commented that he had
imported several natural enemies into various countries with resulting
impressive practical successes where the cost had been less than $100 per
species. In other cases the cost may
run much higher, but he believed not more than a few thousand dollars per
entomophagous species at most. These
tentative costs suggest that some classical biological control projects may
be very inexpensive, but others may cost more because of the biological and
other complexities encountered. Also,
the efficiency of the organization involved may cause costs to vary
considerably, and the cost of the biological control efforts on a per
organization, per country, or worldwide basis must include the cost of
fruitless efforts. Like any other
tactic, biological control must record not only its successes but also
failures (Ehler & Andrés 1983). A
monetary loss due to a failure may still provide a scientific gain in
knowledge which is usually unmeasurable.
Such knowledge may be applied positively in future efforts with a
consequent savings of cost. C. Once establishment and
dispersal in the new environment is obtained in classical biological control,
no further costs for this natural enemy are incurred unless new biotypes are
introduced. Other uses of natural enemies
may involve repeated releases of natural enemies in the field or
glasshouse. These costs are analogous
to the cost of pesticide applications.
The release of Aphytis
in California orange orchards (DeBach et al. 1950), Pediobius foveolatus
against Mexican bean beetle on soybean (Reichelderfer 1979), Trichogramma spp. in many crops
worldwide (Hassan 1982, Li 1982, Pak 1988), Encarsia formosa
against whiteflies in glasshouses (Hussey 1970, 1985, Stenseth 1985a),
phytoseiid mite predators in
strawberries (Huffaker & Kennett 1953), almonds (Hoy et al. 1982, 1984),
and glasshouses (Stenseth 1985b) are examples in which costs of manipulation
of natural enemies are incurred periodically. The use of sterile males in campaigns against screwworm,
Mediterranean fruit fly or pink bollworm was aimed at eradication rather than
regulation of the pest. Under these
circumstances it is assumed that much higher costs can be tolerated. D. The environmental
costs of biological control derived from the possible suppression or
eradication of native species by introduced exotic natural enemies (Howarth
1983, Turner 1985) could be included in a benefit/cost analysis if some
monetary value could be placed on them.
More often than not such factors cannot be accurately priced in much
the same way that increased cancer risks due to the use of some pesticides
cannot be priced. E. Biological Control Benefit
Computation. 1. This is a more difficult task. One of the most successful, and
historically the first, case of biological control in California was the
control of the cottony cushion scale, Icerya
purchasi, by the imported
natural enemies Rodolia cardinalis and Cryptochaetum iceryae. In 1889-1889, when these natural enemies
were imported to California at the cost of a few hundred dollars, the young
citrus industry was at the verge of collapse because of the scale. One year later shipments of oranges from
Los Angeles County had increased three-fold (Doutt 1964). What figures should we use to determine
the benefits of such a program?
Obviously the benefits continue to accrue to the present. In 1889 there was no other effective way
to control the scale even though it is possible that some of the modern
chemical pesticides could control it today.
So is the yearly benefit the full net value of the citrus crop
(assuming the uncontrolled pest could destroy all of the crop and many of the
trees as well), or the total cost of using an effective pesticide? Should we include the benefits of
introducing these natural enemies from California to 26 other countries, in
23 of which the scale was completely controlled? Whichever method is chosen, the benefits of this project are
vast but undocumented. 2. Much more difficult are those cases
were partial noneconomic control occurs:
the natural enemy becomes established, regulates the population of the
target species to a lower level, but not low enough as to have economic
significance. It is conceivable that
in cases like these the natural enemies may make it easier to implement a
more effective, complementary control tactic (e.g., IPM). The effects of biological interactions are
complex and they are often influenced by other factors including weather, and
the beneficial effects of the natural enemy may not be obvious. When the results of biological control are
clear-cut, increased production and increased land values may be only part of
the equation, as enhanced environmental and health effects may also occur but
may go undocumented. The basis for a
comparison between the situation prior and after establishment of biological
control must further consider the changing real value of money over time,
changing markets for the commodity involved, and the dynamics of land
use. Enhanced yield may be due to
reduced pest injury, but also to reduction in diseases the pest may vector. 3. Benefits which are easiest to estimate
are those to the agricultural sector.
Because of the permanent nature of biological control, the net
benefits (II) [i.e., benefit (B) -
costs (C)] corrected for the present value of money using the discount rate (1 + @)-1 accrue over t
years (i = 1,...,t). Note that @ is the interest rate of price of money. t II = Z (Bi - Ci) / (1 + @)i 1=1 [ Z = summation sign] Gross revenue (B) to the grower equals P
(Y-DN(1-E)) with P being price, Y
the maximum possible yield, D the
damage rate per pest N, and E the efficacy of the biological
control. In reality, D is a function of N (i.e., D(N(1-E))), but for simplicity we assume that D is a constant. In fact, the benefit of biological control
for the ith year is Bi = PDNiE, and
in the extreme may equal PY. 4. DeBach (1971, 1974), van den Bosch et al.
(1982) and Clausen (1978) summarized several classical biological control
projects worldwide. A few of them are
reviewed also in Gutierrez et al. 1999), who note their benefit/cost ratios (B/C). This ratio is however dimensionless and tells nothing about the
total gain, rather it is a useful measure of the rate of return per dollar
invested. Some projects, such as
control of the Klamath weed and the Citrophilus
mealybug have B/C ratios in the
thousands, while the ratios for most of the others are in the hundreds. These estimates are, at best, rough
approximations for the reasons stated previously. But even if they overestimate the benefit by 50% the B/C ratios will overwhelmingly favor
the use of classical biological control.
In fact the estimates of benefits are conservative and the errors are
in the opposite direction.
5. There are many other
examples of the benefits of biological control. Tassan et al. (1982) showed that the introduced natural enemies
of two scale pests of ice plant, an ornamental used in California to
landscape freeways, potentially saved the California Department of
Transportation ca. $20 million dollars in replanting costs (on 2,428
ha.). Chemical control at a cost of
$185/ha., or $450,000 annually, did not prove satisfactory. Therefore, if suitable biological control
agents did not exist the minimum long term benefit would appear to be the
replacement cost. The total cost of
the project was $190,000 for a one year B/C
ratio of 105. This was certainly a
cost effective biological control project. 6. The control of cassava mealybug by the
introduced parasitoid Epidinocarsis
lopezi over parts of the
vast cassava belt in Africa was a monumental undertaking. Successful control of the mealybug enabled
the continued cultivation of this basic staple by subsistence growers, thus
potentially helping to reduce hunger for 200 million inhabitants in an area
of Africa larger than the United States and Europe combined. What monetary value could be assigned to
this biological control success? How
is the reduction or prevention of human misery priced? This project has been characterized as the
most expensive biological control project ever ($16 million to 1999) by some
of its critics, but all things being relative, the costs of this program
since its inception in 1982 are less than those of the failed attempt to
eradicate pink bollworm from the southwestern United States, or roughly about
the cost of a fighter plane bought by many of these countries. The per capita cost of the project amounts
to eight cents per person affected in the region, which contrasted to average
yield increases in the Savannah zones of west Africa of 2.5 metric tons per
cultivated hectare would appear to be a good return on the investment
(Neuenschwander et al. 1991).
Finally, the project has been diligent in documenting nearly all
phases of the work (Herren et al. 1987, Gutierrez et al. 1988a,b,c;
Neuenschwander et al. 1991), and satisfying as much as possible the concerns
of Howarth (1983). 7. There are also recent cases of successful
biological control where the benefits are just as impressive but an economic
analysis has not been conducted. The
control of three Palearctic cereal aphids over the wheat growing regions of
South America reduced the pesticide load on the environment causing direct
enhancement of yields. New wheat
varieties were being developed at the time, but their yield potential had not
been stabilized. Thus it is not
possible to assess the maximum contribution of the biological control effort. But if as a result of the establishment of
natural enemies there was a saving of one application of pesticide per annum
the total savings in Argentina, Brazil and Uruguay on 8,996,000 ha. of wheat
alone (FAO 1987) would be substantial, especially if it is contrasted with
the cost of the biological control component, which has been estimated at
less than $300,000 (Gutierrez et al. 1999). 8. Gutierrez et al. (1999) compare the
economic benefits of several successful classical biological control projects
and compare them with the use of inundative releases of natural enemies in
soybean for control of Mexican bean beetle and for greenhouse pests, and the
well known sterile male eradication program.
The release of resistant predatory mites in almonds gave a B/C ratio of 100 (Headley & Hoy
1987), and the screwworm eradication project is estimated to have given a
ratio of 10. Although impressive,
these B/C ratios on the average
are still not as high as those achieved using classical biological control
which is self sustaining. 9. In augmentative release and especially
eradication programs, the cost of starting and maintaining them may be very
high. In some cases a particular pest
may be perceived to be of such damaging nature and effective natural control
may not be available that the high costs of eradication may be deemed
necessary. However, eradication
programs are not without risks. For
example, an economic analysis of the proposed eradication of the boll weevil
from the southern United States predicted that the eradication of the pest
would cause the displacement of cotton from the area (Taylor & Lacewell
1977). In this scenario increased
cotton production due to eradication of the pest would cause prices to fall
forcing production to move to the west where it is more efficient. In the case of the ill fated pink bollworm
eradication effort in the desert regions of southern California, early
termination of the crop was available as an alternative, but it is not
favored by growers because they did not pay for the full cost of the
eradication program or the environmental costs of high pesticide use, and
yields were lower. Only resistance to
insecticides in pesticide induced pests made them reconsider alternatives
such as short season cotton varieties and conservation of natural control
agents. F. Justification of Need For Biological Control. 1. The question is then why do we feel
the need to make economic justifications for biological control? Why hasn't biological control been more
widely supported worldwide? Economists
would call this a market failure, because the users of pesticides do not pay
for long term consequences of pesticide use and hence may ignore
environmentally safer alternatives (Regev 1984). But there are also problems of perception, for as Day (1981)
assessed in his review of the acceptance of biological control as an
alternative for control of alfalfa weevil in the northeastern United
States: "At first, the general
opinion was that biological insect control was outmoded, because it had not
been effective in the east in decades, and it was not likely to be
competitive with synthetic insecticides or the newer synthetic chemicals such
as pheromones, chemosterilants, attractants and hormones." Thus, biological control was not perceived
as competitive with newer technologies and it was not considered modern. The recent over selling of bioengineering
solutions for crop protection can also be added to the list of reasons why
classical biological control is not currently strongly supported. 2. Often the damage of important pests
may not be obvious to funding agencies, or grower groups may not be
sufficiently organized to provide the funding. For example, a related weevil species, the Egyptian alfalfa
weevil in California is a very serious pest not only in alfalfa, but more
important in pasture lands where it depletes the nitrogen fixing plants. In 1974 feeding damage resulted in $2.40 -
$9.59 reduction in fat lamb production (or $5.00 reduction in beef
production) and $1.00 - $1.50 reduction in fixed nitrogen per acre per year,
in addition to spraying costs of $2.50/acre/year plus materials (Gutierrez et
al. 1999). These losses averaged over
the vast expanse of grazing land in California and other western states make
an enormous sum. Despite the economic
significance of this pest, funding for a project has proved elusive, thereby
greatly hindering biological control efforts. In contrast, funding for the biological control of the ice
plant scales in California was rapid because damage was readily visible along
the freeways, and the California Department of Transportation, which funded
the project, had ready access to funds from fuel taxes. 3. The technologically advanced countries
the advocates of biological control, compared to those promoting
predominantly the use of chemical pesticides, are much fewer in number,
generally have sparser resources and have a more difficult educational
task. It requires great educational
skills, financial resources and personal dedication to effectively convey the
necessary information in order to enable growers to make educated decisions
about pest control. The processes of
biological control are not visible to the majority of agriculturists, and
with rare exception its benefits become part of the complicated biology that
is absorbed in the business of crop production, and is quickly forgotten by
old and new clients alike. On rare
occasions the biological and economic success was so dramatic, as occurred
with Klamath weed in California, that the generations four decades later is
aware of the history of the control.
The problem is also increasing in developing countries as modern
agrotechnology displaces traditional methods, and they too become dependent
on pesticides for the control of pests.
To combat this problem the United Nations sponsored project on rice in
southeastern Asia headed by P. E. Kenmore has set as its goal the training of
millions of rice formers on how to recognize the organisms responsible for
the natural control of rice pests.
Thus, perceptions of the seriousness of a pest control problem often
determine whether an environmentally sound alternative is selected. G. Biological Control Versus
Pesticide Use. 1. In a free market economy individual
growers make their own pest control decisions, and purveyors of alternatives
such as pesticides have the right to market them in accordance with state
laws. Under such a system, the
perceptions of the problem by growers and the marketing skills of those
proposing alternative solutions often dictate how well biological control is
adopted in the field. 2. In evaluating the effectiveness of
chemical control or augmentative release of natural enemies, economists
traditionally look at the balance of revenues (B(x)) = the value of the increase in yield attributable to using x units of the control measure (e.g.,
pesticide or augmentation) minus the out-of-pocket cost (C(x)) of causing x
units of the control measure. Only
infrequently are the social costs (S(x))
associated with the control measure included. For augmentative releases of natural enemies and biological
control, S(x) is usually
zero. The benefit function is usually
assumed to be concave from below and the cost per unit of x constant. The net benefit (II)
function should be: II = B(x) - C(x) The optimal solution to this function occurs
when dB/dx = dC/dx, hence the
optimal quantity of x to use is x1 when S(x) is excluded, but is x2 when included? If the cost per unit of x used increases with x, costs rise rapidly and less
pesticide (x3) is
optimal. Unfortunately, the social or
external costs of pesticides in terms of pollution, health and environmental
effects are seldom included in the grower's calculations because there is no
economic incentive to do so. In
contrast, augmentative releases of natural enemies also engender ongoing
costs, but they are environmentally safe and may be more economical than
pesticide use. Prime examples of the
successful use of this method are the highly satisfactory control of pests in
sugarcane in Latin America (Bennett 1969), and in citrus orchards in the
Filmore District of southwestern California (van den Bosch et al. 1982). 3. Conservation of natural enemies for
control of pests such as Lygus
bugs on cotton in the San Joaquin Valley in California and in other crops
elsewhere (DeBach 1974) often yields superior economic benefits than does
insecticidal control (Falcon et al. 1971).
In such cases the ill advised use of chemical pesticides (x) may induce damage resulting in
additional pest control costs and, at times, lower yields (Gutierrez et al.
1979). With naturally occurring
biological control and economically viable classical biological control (BC), the costs of other pest control
tactics and social costs often become zero, and the whole of society obtains
the maximum benefits: the natural and
biological controls supplant other methods of control and may solve the
problem permanently. In such cases
biological control should be favored as the equation for profit becomes, B(BC) - C(BC) > B(x) - C(x) > B(x) -
C(x) - S(x). Despite effective natural control, growers may
still perceive a high positive risk of pest outbreak and may apply cheap
pesticides as insurance against risk of pests such as Lygus in cotton, but in paying the premium they may become
stuck in a treadmill of pesticide use as described by van den Bosch
(1978). DeBach (1974) named
pesticides "ecological narcotics" because of their effect of
suppressing problems temporarily, but causing addiction to their continued
use. Regev (1984) also referred to
the addiction to pesticides, and concluded that generally the root of the
problem is that pesticides are preferred because the social costs are not paid
by the users. 4. Two concepts appear in an analysis of
the reliance of growers on pesticides:
one is a measure of the mean and variance of profits and the other is
the perception of risk (Gutierrez et al. 1999). If there is effective natural control (e.g., San Joaquin Valley
cotton), growers who do not wish to take risks still perceive the
distribution of profits with and without pesticides. Obviously if such growers think that
despite the same average profit, the variation in profit is lowest using
pesticides they will undoubtedly choose to control pests by using them. If growers are more informed about all the
issues, they may still judge the distribution more favorable using pesticides
(2B) because they have no
incentive to assume responsibility for social costs. The decision might not be so certain in
the latter cases, if increases in pesticide costs cause a significant shift
in the perception of risk involved in the various control alternatives. A desirable outcome might be that natural
controls are increasingly preferred.
If resistance occurs, growers soon learn that preserving natural
enemies in the field is an option to bankruptcy. In cases of complete biological control, the mean profits may
be greatly increased because pesticides would no longer be required, yields
would be near maximum and the variance of yield narrowed. 5. Thus it is important how a grower
perceives risk which determines how much he will be willing to pay for pest
control to minimize that risk. Adding
the social cost of pesticide use to the cost of pesticides narrows the gap
between unrealistically perceived risk and the real risk to profits. Taxing pesticide users to fund biological
control efforts would be a socially responsible way to fund permanent solutions
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