Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity

Production risk and market access put pressure on agricultural household production and food consumption decisions. Improving market access and promoting production diversity have been proposed as solutions to better agricultural household nutritional outcomes. Particularly with regards to productio...

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Main Authors: Keenan, Michael, Karanja Ng'ang'a, Stanley, Pamuk, Haki, Ruben, Ruerd
Format: Artículo preliminar
Language:Inglés
Published: CGIAR Research Program on Climate Change, Agriculture and Food Security 2021
Subjects:
Online Access:https://hdl.handle.net/10568/114293
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author Keenan, Michael
Karanja Ng'ang'a, Stanley
Pamuk, Haki
Ruben, Ruerd
author_browse Karanja Ng'ang'a, Stanley
Keenan, Michael
Pamuk, Haki
Ruben, Ruerd
author_facet Keenan, Michael
Karanja Ng'ang'a, Stanley
Pamuk, Haki
Ruben, Ruerd
author_sort Keenan, Michael
collection Repository of Agricultural Research Outputs (CGSpace)
description Production risk and market access put pressure on agricultural household production and food consumption decisions. Improving market access and promoting production diversity have been proposed as solutions to better agricultural household nutritional outcomes. Particularly with regards to production diversity, the efficacy of these solutions has been called into question. We show that the effectiveness of increased production diversity translating into improved household nutrition is dependent on levels of market participation and access. To demonstrate these results, this paper develops a non-separable agricultural household model with multiple agricultural goods for consumption and/or production, production risk, and imperfect markets. Households jointly maximize production, consumption, and marketing decisions. The model’s results are tested econometrically using nationally representative data from Tanzania. The paper contributes to a growing empirical literature concerning the relationships between production diversity, market access, and dietary diversity. We show that while on average a household needs to grow ten additional food groups to consume just one more food group, households not participating in markets need to grow just four more food groups to consume one more. This interaction explains why the literature typically finds weak correlations between dietary diversity and production diversity for typical households. The paper also contributes to the theoretical literature surrounding non-separable household models by providing a framework for understanding the role of markets and risk for household dietary diversity by developing. Our model provides economic theory consistent with existing empirical evidence and helps explain why most studies only find a small link between production diversity and dietary diversity.
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spelling CGSpace1142932025-11-05T11:26:31Z Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity Keenan, Michael Karanja Ng'ang'a, Stanley Pamuk, Haki Ruben, Ruerd agriculture food security climate change dietary diversity production diversification Production risk and market access put pressure on agricultural household production and food consumption decisions. Improving market access and promoting production diversity have been proposed as solutions to better agricultural household nutritional outcomes. Particularly with regards to production diversity, the efficacy of these solutions has been called into question. We show that the effectiveness of increased production diversity translating into improved household nutrition is dependent on levels of market participation and access. To demonstrate these results, this paper develops a non-separable agricultural household model with multiple agricultural goods for consumption and/or production, production risk, and imperfect markets. Households jointly maximize production, consumption, and marketing decisions. The model’s results are tested econometrically using nationally representative data from Tanzania. The paper contributes to a growing empirical literature concerning the relationships between production diversity, market access, and dietary diversity. We show that while on average a household needs to grow ten additional food groups to consume just one more food group, households not participating in markets need to grow just four more food groups to consume one more. This interaction explains why the literature typically finds weak correlations between dietary diversity and production diversity for typical households. The paper also contributes to the theoretical literature surrounding non-separable household models by providing a framework for understanding the role of markets and risk for household dietary diversity by developing. Our model provides economic theory consistent with existing empirical evidence and helps explain why most studies only find a small link between production diversity and dietary diversity. 2021-07-14 2021-07-14T16:06:09Z 2021-07-14T16:06:09Z Working Paper https://hdl.handle.net/10568/114293 en Open Access application/pdf CGIAR Research Program on Climate Change, Agriculture and Food Security Keenan M, Ng'anga Karanja S, Pamuk H, Ruben R. 2021. Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity. CCAF Working Paper No.360. Wageningen, the Netherlands: CGIAR Research Program on Climate Change, Agriculture and Food Security(CCAFS).
spellingShingle agriculture
food security
climate change
dietary diversity
production diversification
Keenan, Michael
Karanja Ng'ang'a, Stanley
Pamuk, Haki
Ruben, Ruerd
Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity
title Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity
title_full Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity
title_fullStr Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity
title_full_unstemmed Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity
title_short Smallholder Farming Households' Make-or-Buy Decisions: Linking Market Access, Production Risks, and Production Diversity to Dietary Diversity
title_sort smallholder farming households make or buy decisions linking market access production risks and production diversity to dietary diversity
topic agriculture
food security
climate change
dietary diversity
production diversification
url https://hdl.handle.net/10568/114293
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