CIMMYT Funding Trends
and Topics, 2000–2001

Figure 1. Top twelve investors in CIMMYT, 2000.

Figure 2. Investors in CIMMYT, 2000.

Figure 3. Allocation by CGIAR output, 2000.

Figure 4. Trends in Funding (US$ 000), 1995-2001.

Funding Sources at a Glance

The governments and agencies that provided the largest share of our funding in 2000 are shown in Figure 1. The contributions to CIMMYT’s budget by CGIAR member nations, North and South, as well as foundations and advanced research institutes (in the public and private sectors), are presented in Figure 2. To achieve the five research outputs of the CGIAR, CIMMYT allocated its budget as shown in Figure 3.

Sources of income from grants are presented in the table. Targeted funding continues to provide the bulk of CIMMYT’s research resources (Figure 4). The trend in core unrestricted funding in relation to targeted contributions continues to provide challenges to the Center, as flexibility is reduced and core research on the management and use of genetic resources becomes harder to support. Full costing of projects is more important than ever, including accurate costing of indirect costs. Indirect costs are currently running at about 25%, whereas net overhead recovery is around 15%.

Funding Levels and Trends

Funding for 2000 was US$39.801 million (including Center earned income), of which 83% came from CGIAR investors and 17% from other sources. Expenditure was US$39.261 million. The budget in 2000 was higher than initially projected for three reasons. First, our research portfolio is highly relevant to the current goals of investors who have traditionally supported international agricultural research. CIMMYT’s research and development activities continue to help reduce poverty and improve livelihoods across the developing world (see: "Meeting the Needs of the World's Poor through Wheat and Maize Research").

Second, CIMMYT has enhanced efforts to support its research with nontraditional sources of funding. The trend towards diversified sources of income that was significant in 1999 has become stronger in 2000-01.CIMMYT’s partnerships with nontraditional organizations such as foundations and advanced research institutes in the public and private sectors are expanding.

CIMMYT’s alliances with advanced research institutes take the form of partnerships, generally with the public sector in the North and the South. In the case of the former, CIMMYT is interested in alliances that help us to more quickly develop new, appropriate technologies and deliver them to farmers’ fields in developing countries. For the latter, we are very cognizant of our role in helping to create an enabling environment for our partners in developing countries. A significant component of CIMMYT’s budget in 2000 (almost US$5 million) was flow-through funding to our partners in the South; this represents trust in CIMMYT by our partners and trust with our investors. 

Similarly, our interactions with the advanced research institutes of the private sector have become stronger. These interactions continue to take the form of “win-win” alliances directed at achieving the following outcomes:

• access to proprietary technologies that enable CIMMYT to deliver research outcomes to developing countries more quickly;

• the facilitated transfer of technology, research products, and other benefits to the resource poor; and

• the leverage of additional resources brought to bear on challenges in developing countries.

A third reason that the Center’s budget was higher in 2000 than initially projected is that CIMMYT has vigorously pursued partnerships that enable scientists from developed countries to work at CIMMYT sites worldwide and to make a significant contribution to CIMMYT’s research agenda. This approach, known as “in-kind” contributions, is perhaps best exemplified by the current contribution from France (CIRAD, IRD, INRA),*but there are a number of other examples. Total income in this category for 2000 amounted to US$1.869 million.

Prospects for 2001

An important factor in the Center’s budget and cash flow scenario in 2000 was that the US dollar gained in strength against almost all other currencies in the world. CIMMYT managed exchange rate losses of some US$2.2 million on all sources of funds (unrestricted, restricted, and special project). Against this trend, however, the Mexican peso appreciated in value. With 50% of CIMMYT’s budget expended in pesos, the Center was forced to produce an effective “efficiency gain” of 5-7%.

The operation of a Center that has two major plant breeding programs continues to pose challenges for financial management, particularly in regard to cash flow and maintaining adequate working capital reserves. CIMMYT is steadily increasing the level of working capital through prudent budgetary measures, but an additional injection is needed. Currently we are exploring options to increase access to working capital by an additional 30 days beyond the current level of 55 days. It is important to note that CIMMYT is increasing working capital reserves in a climate of uncertain scheduling of disbursements by investors and with no disruption to our research agenda.

We have also taken measures internally to optimize the use of capital funds. For example, we have implemented an internally administered cost recovery system for the vehicle fleet to ensure that capital funds are used responsibly and equitably.

Our most pressing capital investment need is to further develop Agua Fria, the new research site that replaces the Poza Rica Research Station, an important breeding site for lowland tropical maize, which was destroyed by floods in October 1999. Research conducted at Agua Fria will help CIMMYT to meet the needs of resource-poor farmers cultivating 55 million hectares of maize in Africa, Asia, and Latin America (about 70% of the maize area in developing countries, excluding Argentina, China, and South Africa). Special assistance for purchasing and developing the new site has been received from the CGIAR Finance Committee (US$250,000) and Australia (A$50,000), but an additional amount of up to US$1 million is required for the station to become fully operational.

* CIRAD (Centre de Coopération Internationale en Recherche Agronomique pour le Développement), IRD (Institut de Recherche pour le Développement), INRA (Institut National de la Recherche Agronomique).

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© CIMMYT October 2001

Annual Report 00-2001