Impact of Teff commercialization on smallholder farmers’ food security in Northwestern, Ethiopia

Teff, a versatile crop, serves both as a food source and a cash crop in Ethiopia. It is recognized for its potential to enhance the income of smallholder farmers, improve food security, and contribute to sustainable development goals. This study aims to assess the impact of Teff commercialization by smallholder farmers on food security. Both primary and secondary data were used using the 2020/2021 cropping season. A three-stage sampling procedure was used to draw 352 sample households. Food security was assessed using proxy indicators: household dietary diversity and food consumption score. The descriptive statistical results showed that 182 (51.7%) and 170 (48.3%) sample households were subsistence, and commercialized household heads respectively. Notably, commercial farmers exhibited better household dietary diversity (91.2%), whereas subsistence farmers scored lower in terms of food consumption (29.1%). Male household headship reduced HDDS for commercializing farmers (−1.6); credit usage boosted HDDS for commercialized groups (1.1), and livestock ownership improved HDDS for subsistence groups (0.21) in the second-stage endogenous switching regression. The model result also showed that, Teff commercialization positively impacted HDDS and FCS, with average treatment effects of 3.81 and 4.46, respectively. Transitional heterogeneity results showed that commercialized farmers had lower household dietary diversity (−0.47) and lower food consumption score (−14.19) than subsistence households. In light of these findings, encouraging smallholder farmers to transition from subsistence production to commercialization is crucial for supplementing their overall production. Additionally, government efforts should focus on raising awareness about nutrition-sensitive agricultural practices.