Graft is good: the economic and environmental benefits of grafted naranjilla in the Andean region

Abstract Naranjilla cultivation is highly profitable in many parts of the Andean foothills in Colombia and Ecuador. Its susceptibility to soil-borne diseases, however, lowers its economic benefits, reduces sustainability of production and increases its contribution to environmental degradation. This paper presents an analysis of the potential market and non-market benefits of research that developed and tested the grafting of common naranjilla onto disease-resistant rootstock. Grafting reduces the need for pesticide application and increases the longevity and sustainability of the plant. An economic surplus approach, carefully calibrated to reflect the realities of naranjilla production, was employed to show the large benefits from such research. Environmental and health benefits are very close in magnitude to market-mediated surplus gains. The results show substantial potential benefits from an outreach program to diffuse the new technology.