Contract farming and smallholder food and nutrition security: evidence from oilseed and pulse producers in northwest Ethiopia

Although high-value crop cultivation in Ethiopia is often promoted as a way to advance agriculture development, the particular impacts of contracts for oilseed and pulse production on households food and nutrition security remain under researched. Therefore, this study examines how oilseed and pulse contracts impact the dietary diversity and the food consumption status of households in northwest Ethiopia. Data were obtained from 329 randomly selected households. Descriptive analysis and average treatment effect estimation were applied to analyze data. Non-participants typically have more different views whereas participating farmers often have positive attitudes on oilseed and pulse-growing contracts. A major advantage was found to be access to inputs, credit, extension services, and guaranteed markets with price premiums. While 20% of non-participants view oilseed and pulse production contracts favorably, around 96% of participants do. Non-participants treat buyer-farmer agreements with mistrust and indifference. Econometric model result shows that while distance to collecting centers and high dependency ratios lower it, education, farm size, livestock ownership, extension contact, and awareness significantly increase the likelihood of participation. Although small, participation also provides statistically significant food security, thereby increasing household food diversity scores by 0.36 and food consumption scores by 1.9 relative to non-participants. Provided that supporting policies and awareness programs are enhanced, oilseed and pulse contract farming show the possibility of offering marginal improvements to food and nutrition security for smallholder farmers.