Farmers’ participation decision in high value market and its effect on food security of smallholder avocado producers in Sidama region, Ethiopia

Abstract

Abstract Food insecurity is an enduring, critical challenge in Ethiopia. Linking farmers to high-value markets continue to be a viable option for breaking the food insecurity. Many studies have emphasized on factors determining smallholders’ participation in high value markets. Despite their undeniable importance, these studies have methodological limitations since they neglected the importance of this for food security. Thus, this study aimed to fill a knowledge gap in the area by investigating the factors influencing smallholder avocado farmers’ participation in a high-value market channels and how it impacts households' food security in the study area. This study employed a cross-sectional research design and multistage sampling techniques to achieve the objectives of the study. Both primary and secondary data were collected. The primary data were collected from randomly selected 389 avocado producers using a semi structured questionnaire. Secondary data were collected from journals, annual reports, websites and different published and unpublished materials. Descriptive statistics, inferential statistics, and propensity score matching model were used to analyze the data. The result of the binary logit model revealed that the participation of avocado producers in a high-value market channels was influenced by age, educational status, the quantity of avocados sold, and price of avocado in quintal and market information. The ATT estimation of PSM model indicated that the participation in high-value market channels had a positive and significant influence on the food security in the study area. Given the substantial contributions participation in the high-value market channels to food security, concerned bodies in Ethiopia should encourage more households to participate in the high-value market channels.