Participation in the market chain and food security: The case of the Ugandan maize farmers

Abstract

Empirical assessment of the links between market chain participation and food security is characterized by conflicting evidence. Our goal is to deal with this issue at different points of the commercialization chain by providing a sound identification strategy using the Uganda World Bank Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) panel data. By looking at the dynamics of farmers’ consumption over time and controlling for a variety of household and production characteristics as well as possible confounding factors, our results show that farmers’ food security is positively affected by participation in the market chain, irrespective of the choice of outlet. This provides two key messages for policymaking: farmers selling to the market are better off and intermediaries do not hamper food security.