The impact of cash saving on the food security status of smallholder coffee farmers: evidence from southwest Ethiopia

Abstract

PurposeEthiopia suffers from structural food insecurity due to its low food production, low purchasing power, and climatic shocks such as drought. Coffee is Ethiopia's primary source of foreign earnings, and 95% of it is produced by smallholder farmers. Coffee also provide better income to smallholder farmers than other crops. However, it is unclear how much smallholder coffee producers participate in cash savings and if their savings help them attain food security. In this study, the authors aim to assess the impact of cash savings on the food security of smallholder coffee farmers in Ethiopia.Design/methodology/approachUsing cross-sectional quantitative data from 336 randomly selected households and qualitative data from the local community, this study examines the impact of cash savings on household food security. Logistic regression and propensity score matching models were used to analyze the impact of cash savings on households' food security.FindingsAbout, 43.5% of coffee farmers did not participate in cash savings during the study period, while 50.6% had no access to credit. The major factors that limit households' likelihood of participating in cash saving were the gender of household head and family size. Approximately, 38.4 and 27.1% of coffee farmers were food poor based on calorie intake and consumption scores, respectively. Households' participation in saving increases their ability to meet dietary energy requirements and consume diverse foods.Originality/valueTo the knowledge of the author, empirical studies that examined the impact of cash saving on the food security status of smallholder farmers in the study area are limited. Therefore, this study brings original contribution and fills research gap on coffee farmers' cash saving and food security; that received little attention from previous researchers in Ethiopia.