Vertical coordination in the Dutch pig industry

G.C. de GRAAFF and J.J. de VLIEGER

European Review of Agricultural Economics, 1978, vol. 5, issue 3-4, 397-405

Abstract: The terms of reference of the paper cover the commercial and organizational relations between pig producers on the one hand and mixed feed industries, slaughterers and meat processing industries on the other. The paper deals with those aspects of buying mixed feeds and selling breeding pigs, weaners and slaughter pigs, that can be looked upon as instruments of vertical coordination in addition to the traditional price mechanism viz. systems of discounts and surcharges, contractual arrangements, cooperative marketing and vertical integration. Except for vertical integration, these elements of active vertical coordination do occur on a large scale in the Dutch pig industry. They are intended to reach a better tuning of the economic activities in the successive stages of production and marketing. Negative aspects can be found in the field of market transparency and the bargaining position of the individual pig-keepers.

Date: 1978
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