Assessing the economic benefit of area wide management and the sterile insect technique for the Queensland fruit fly in pest-free vs. endemic regions of South-east Australia

Abstract

This study evaluates the economic potential for Area Wide Management (AWM) of the Queensland fruit fly (Qfly) using the Sterile Insect Technique (SIT) through three case studies across endemic and Pest-Free Areas (PFA) in south-east Australia. The cost of Qfly needs to be identified before the potential benefit of AWM and SIT can be evaluated. We use results from grower workshops and expert elicitation to identify the financial cost of Qfly to growers (the baseline) and the potential impact of AWM as a precursor to SIT (scenarios). Results show a net benefit from maintaining PFA status. In endemic regions, the potential financial benefits to growers of are low. Avoided adjustment costs that contribute to a net benefit in PFA’s are sunk in endemic regions. The low threshold for Qfly in markets and on-farm, and availability of cost-effective management options, implies limited benefits from avoided management costs. Market access is uncertain and AWM and SIT alone are not sufficient to access these benefits. Although there may be exceptions, we find limited grower benefits from AWM and SIT in Qfly endemic growing regions.