Commercialization and Household Food Security: Evidence from Dugda Woreda, East Shoa Zone, Oromia, Ethiopia
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Date
2022-11
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Addis Ababa University
Abstract
Food insecurity and malnutrition affect people in all regions, across the worldwide. According to FAO report 9.7% of the global population affected by severe levels of food insecurity. In addition, the report of the WFP shows the most of world population showing to severe food insecurity except in Northern America and Europe. This study focused on examining and investigating the effect of credit on agricultural commercialization and household food security in the Dugda woreda, East Shoa Zone, Oromia, Ethiopia. We used a cross-sectional data with a sample size of 370 households selected randomly from the lists of commercial commodity producers of four kebeles. The result of the food consumption score (FCS) indicates that poor consumption is 6% of households, 32% borderline, and 62% acceptable score. The household food insecurity access scale (HFIAS) shows that 59% of households are food secure, and 41 % have mild food insecure. The logistic regression and propensity score matching (PSM) show access to credit and commerce negatively influences having poor and borderline food consumption score while it has positively influenced on having acceptable food consumption score. As well as, the result shows access to credit, agricultural commercialization, and holding livestock increases the probability of being food secure while it decreases the probability of being mildly food insecure. These variables were statistically significant at 1 %. The PSM show those households that access credit have about 33. 89% higher food security compared to that non-credit access, and similarly, a farmer who access credit their sale is 2,152.62 birrs higher than noncredit users' households. The above implication farm commercialization after the availability of credit improved the smallholders' income by nearly 2,153 birrs, thereby enhancing their spending on food items as revealed significant at 5%. Therefore, access to credit and agricultural commercialization has a positive impact on household food security status.
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Credit, Agricultural Commercialization, FCS, HFIAS, PSM