Agricultural cooperatives boost food security through input subsidies in rural Zambia

Abstract

While much has been learned on the impacts of cooperative membership and input subsidies in developing countries, the interplay between these two mechanisms in enhancing household food security remains unexplored. We address this gap by investigating the combined role of agricultural cooperatives and input subsidy programs at improving food security in Zambia—a context where cooperatives serve as key channels for delivering input subsidies to farmers. Using a random sample of 436 farmers from a Zambian typical rural area and instrumental variable-based causal mediation approach, we determine the impacts of cooperative membership on dietary diversity and food insecurity through input subsidy participation. The findings reveal that cooperative members benefit significantly from improved access to agricultural inputs, facilitated by input subsidies. Cooperative membership indirectly increases household dietary diversity by 11.26% and reduces food insecurity by 20.39%, demonstrating the critical role of social protection programs in amplifying the benefits of cooperatives. Although direct effects of cooperative membership also indicate improvements in dietary diversity and reductions in food insecurity, these effects are less pronounced without the mediating influence of input subsidies. The results demonstrate the necessity of aligning input subsidy programs with cooperative models to achieve meaningful food security outcomes. To maximize these benefits, the study recommends strengthening the integration of social protection programs with cooperatives, implementing targeted training for cooperative members, and promoting inclusive practices to ensure equitable access to program benefits. These insights provide valuable guidance for policymakers seeking to enhance rural development and contribute to achieving global food security goals.