Effect of value addition participation on food security of smallholder ginger farmers: the case of Southern and Central Ethiopia

Abstract

This study explored the effect of participation in value addition on the food security of smallholder ginger farmers in Southern and Central Ethiopia. The primary goal was to identify factors influencing farmers’ decisions to engage in value addition and assess how these decisions impact their food security. Using cross-sectional data from 343 households, an endogenous switching regression (ESR) model was employed. The first-stage probit model identified several key determinants of value addition participation, including age and education level of the household head, quantity of ginger produced, and access to credit—all positively associated with participation. Conversely, distance to the credit source had a negative and significant impact. In the second stage, the outcome equation indicated that access to information, land size, and credit access were positively correlated with improved food security. This highlights the importance of market information and financial support. The analysis also found a positive transitional heterogeneity effect, suggesting that the impact of value addition on food security is more pronounced among participants. Overall, findings highlight ginger value chain participation’s role in increasing income and food security. Policymakers should focus on farmer education, credit access, and market information, and support both younger and older farmers accordingly.