Impacts of Participating in Avocado Production on Smallholder Farmers’ Income in Ethiopia: Evidence from North Mecha Woreda, Amhara National Regional State, Ethiopia

Purpose This study examined the impact of participation in avocado production on the income of smallholder farmers in North Mecha Woreda, Amhara National Regional State (ANRS), Ethiopia. It also identifies the key factors influencing farmers' involvement in avocado production. Design/methodology/approach: A quasi-experimental approach is used, with data from 360 households. Of these, 180 are treated as participating farmers, while the remaining 180 act as a control group. A logit model is applied to identify factors influencing avocado production participation, and the causal relationship between participation and income is estimated using propensity score matching (PSM) analysis. Findings: The PSM analysis shows that participation in avocado production significantly and positively impacts farmers' income, with the treatment group earning 22.8% more than the control group. The logit model reveals that market distance negatively affects participation, whereas access to irrigation, extension services, training, avocado seedlings, large livestock holdings, cultivable land size, and the educational level of the household head positively influence avocado production participation. Originality/value: This study focuses on the economic benefits of avocado production for smallholder farmers in Ethiopia, highlighting the significance of addressing the factors that influence participation. It offers actionable insights into scaling up best practices for avocado production in the Amhara region and beyond, with the potential to increase smallholder farmers' income and livelihoods.