Does coffee production reduce poverty? Evidence from Uganda

Purpose - The purpose of this paper is to examine the effect of coffee production on poverty among smallholder farmers. Design/methodology/approach - National Household Survey data for Uganda were triangulated with qualitative field data. A mix of propensity score matching (PSM) and quantile treatment effect techniques was employed. Findings - The results reveal a significant effect of coffee production on poverty reduction, through incremental household consumption expenditure. Households engaged in coffee production are associated with a lower incidence of poverty. The interesting evidence suggests that coffee production is a pro-poor intervention. These findings are confirmed by qualitative assessment that reveals farmers’ welfare improved to greater extent to satisfactory levels from coffee income. Research limitations/implications - Econometrically robust strategies were employed to ensure minimal estimation bias; however, the authors are mindful of PSM limitation of selection on observables. Originality/value - This paper is part of a limited body of literature that combines quantitative and qualitative assessment, a growing issue in contemporary research. In addition to employing one of the conventional impact evaluation techniques, the paper accounts for heterogeneity in the effects of coffee production.