International agricultural research aimed at improving productivity in developing countries also has spill-over effects on developed countries. Research that affects the supply of commodities is also likely to affect the world price of tradeable commodities. In this paper, the effects of spill-overs to Australia from successful cost-reducing research into sorghum and chickpeas at the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) aimed at developing countries are assessed. Genetic materials developed and distributed through ICRISAT are used in Australia to increase productivity. The price-reducing effects of successful research are incorporated into the analysis of spill-over impacts on productivity. The net effects on welfare for producers and consumers of sorghum and chickpeas in Australia and the Rest of the World (ROW) are identified. The consequences of the impacts are discussed and the implications for further funding of international agricultural research are also discussed. © 2002 Elsevier Science B.V. All rights reserved.