Vertical Integration

John 0. Dunbar, Extension Economist, Purdue University

Type: PDF

Farm Table says:

The sections in this paper include: vertical vs horizontal integration
  • the essence of vertical integration
  • how and why vertical integration takes place
  • conditions that enhance managerial profits
  • limiting factors of vertical integration
  • effects of vertical integration on production, distribution, and consumption
  • effects on income and income distribution
The social and political implications of vertical integration is that small family farms are under increasing pressure to expand and be better organized to survive, which means taking a greater role in the supply chain of their products.

This paper explains vertical integration and what it means for farm supply chain management and marketing of products.

John 0. Dunbar, Extension Economist, Purdue University
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