Almost 1.3 billion people worldwide do not have access to adequate food to consume, 22.8% of these people living in Sub-Saharan Africa (FAO, 2019). In the sub-Saharan Africa, smallholder agriculture has long dominated the economy and will continue to play a crucial role for the foreseeable future (Gollin, 2014). Despite agriculture being the main source of income in Africa, it is inadequate to feed the continent's expanding population (African Union, 2013).The sector's limited market integration and subsistence status, however, continue to be significant obstacles.
The agricultural sector also dominates the Ethiopian economy, contributing 34.1% of GDP, 79% of export revenues, 79% of the labor force, and 70% of the raw materials used in industries (Asrat et al., 2022; Endalew et al., 2022; Gebremariam et al., 2021; Wordofa et al., 2021; Zegeye et al., 2022). Agriculture in the country is mostly dependent on rainfall, carried out on a small scale, and has limited access to technology, extension assistance, market information, and financial access, all of which have lowered agricultural productivity (Kifle et al., 2022; Nakawuka et al., 2018). Indeed, the country's agricultural production growth has lagged behind the pace of population expansion (Regasa et al., 2021).
Horticulture farming has been identified as one of the agricultural sub-sectors that is expanding quickly and a potential driver of poverty reduction for low-income smallholder households (Mkindi, 2011; Barrett et al., 2012). Horticultural crops refer to fruits, vegetables, ornamental and medicinal plants (Amao, 2019). Avocado is one of the horticultural crops with high economic value.
Avocado (Persea Americana Mill.) is originated in Mexico (Muhammad, 2015. After pineapple, avocado is the fruit that is traded the most, it makes up around 25% of all tropical fruits. Avocado has nutritional benefits such as potassium, unsaturated fatty acids, proteins, and fat-soluble vitamins that are uncommon in other fruits (Duarte et al., 2017). The fruit is also utilized as a raw ingredient in the pharmaceutical and cosmetic industries (Duarte et al., 2017). Africa has a strong interest in avocado cultivation and marketing. South Africa, Ethiopia, Cameroon, Rwanda, and Kenya continue to be the continent's top producers of avocados (FAO, 2019).
In Ethiopia, avocado is grown on a total of 20,908.00 hectares, with a production of 104,492 tonnes. The output of avocados in Ethiopia has historically ranged from 13,888 tonnes in 2001 to 104,492 tonnes in 2019 (FAOSTAT, 2020). Approximately 36% of the nation's annual avocado production comes from the Sidama region (CSA, 2021).
Linking Smallholder farmers to high value market may offer the opportunity to produce and sell high-value products, translating their vertically-coordinated relationships into premium prices and letting them capture a bigger share of the price paid by final consumers (Hussein & Suttie, 2016; De Janvry & Sadoulet, 2020; Kilelu et al., 2017). Indeed, there is evidence in that participation of small-scale farmers in high-value markets presents opportunities to improve their productivity, income, food security, and reduce poverty (Belay, 2018; Sharp et al., 2007; Barrett et al., 2012; Mmbando et al., 2015).
In current days, small-holder farmers have more options to participate in high-value markets due to the booming supermarkets and agro-processing industries, which may help them earn more money and have more reliable access to food (Hernandez et al., 2007). However, for the majority of smallholders in developing regions, sustained participation in high-value markets remains difficult. Recent empirical evidences shows that smallholders frequently quit high value market upon entry due to substantial post-entry transaction risks (Anderson et al., 2015, Michelson, 2017, Lambrecht and Regasa, 2018, Romero and Wollni, 2018). According to Mossie et al., (2020) some issues such as poor infrastructure, grading systems, insufficient market information and communication between farmers, traders and consumers pose a significant hindrance to high value market accessibility.
Ethiopia has been implementing agricultural development lead industrialization (ADLI) policy since the early 1990s. In order to attain such a development goal, there should be a market oriented production, which ensures marketable surplus as well as efficient and effective marketing system that will enable farmers to gain the actual profit from what they produce. Given reliable market, an increase in market participation in turn makes it easy for farmers to shift into commercial farming, increasing economic growth (Jari and Fraser, 2009).
The marketing channels used by farmers to sell their avocados in the study area can be split into two groups: high-value market channels and traditional market channels. Traditional market channels represented by Village markets, whilst, the high-value market channel represented by processor (Yirgalem agro-processing industry, Hawassa juice house and supermarkets).
There are few research on the impact of smallholder farmers' participation in high-value markets on food security in Ethiopia. Many studies have emphasized on factors determining smallholders participation in high value market (Tamirat et al., 2018; Getahun et al., 2018; Girmalem et al., 2019; Kassa et al., 2017; Mengesha et al., 2019; Tarekegn et al., 2020; Abate et al., 2019; Biggeri et al., 2018; Gebremedhin et al., 2019; Habtewold et al., 2017; Kyaw et al., 2018; Warsanga & Evans, 2018, Despite their undeniable importance, these studies have methodological limitations since they only look at the factors that influence smallholders’ participation in the high value market, neglecting the importance of this for food security. Thus, this study aimed to fill a knowledge gap in the area by investigating the factors influencing smallholder avocado farmers' participation in a high-value market channel and how it impacts households' food security in Aleta Chuko district, Sidama Region of Ethiopia.