Farm Production Diversity and Household Dietary Diversity: Panel Data Evidence From Rural Households in Tanzania

Evidence on whether diversifying farm production leads to improved household dietary diversity and nutrition remains inconclusive. Existing studies analyzing the link between production diversity and dietary diversity are mainly based on cross-sectional methods, which could be biased by omitted confounding factors. Using two waves of a panel household survey of 900 rural households in Tanzania, this paper examines the link between production diversity and dietary diversity, while minimizing potential confounding effects. We estimate four regression models with two different production diversity measures and two panel estimation methods—fixed effect (FE) and random effect (RE). In three out of the four models, production diversity is significantly and positively associated with the dietary diversity measure of the food consumption score. The production diversity indicator is represented by the total crop and livestock species count, as well as by counting only crop species. The total crop and livestock species count shows a significant positive association with dietary diversity across estimation methods while the positive association with crop species count is not significant in the FE method. Our results suggest that the selection of appropriate production diversity indicators tailored to the specific circumstances of the local agricultural system is likely one key factor in identifying a robust relationship between production diversity and dietary diversity