Market chain participation and food security: the case of the Ugandan maize farmers

An assessment of the links between market chain participation and food security is hampered by a scant empirical literature, mostly based on case studies. Our goal is to deal with this issue by providing a sound identification strategy using the WB LSMS-ISA panel data 2009-12 for Uganda and controlling for self-selection. We show that both the level and the variability of Ugandan maize farming households' food consumption is affected by market choice. However, contrary to common wisdom, intermediaries do not play a major role in farmers' welfare. This empirical evidence is consistent with the theoretical prediction that also in Sub-Saharan Africa modern food chains tend to reinforce vertical coordination across actors and the enforcement of contracts, thus reducing the market power of intermediaries.