DEVELOPMENT OF VERTICAL INTEGRATION IN AGRIBUSINESS WITH SPECIAL REGARD TO MEAT INDUSTRY

Dariusz Strzebicki

Economic and Regional Studies (Studia Ekonomiczne i Regionalne), 2014, vol. 07, issue 3

Abstract: The aim of the article is to identify factors determining the development of vertical integration in agribusiness. The main focus of the study is placed on the meat industry. It describes important economic theories and conceptions which provide explanation of vertical integration processes in economy. Vertical integration is a method of exchange organization and it may result from problems with making transactions on the market or problems with contracting. The decision on whether to introduce vertical integration is inϐluenced by many production, market and management factors. Uncertainty caused by technological changes and difϐiculties in coordination of sales among the stages of food supply chains have a considerable impact on vertical integration in agribusiness. Integrators in agribusiness are usually large food industry companies which benefit greatly from vertical integration.

Keywords: Industrial Organization; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:plecrs:265037

DOI: 10.22004/ag.econ.265037

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