Vertical Organization and Coordination in Selected Commodity Subsectors

This group pf papers was presented at an American Agricultural Economics Association Symposium organized by the North Central Regional Research Project NC-117 in Blacksburg, Virginia on August 7, 1978. In the last two years, one element of the NC-117 research effort has been an analysis of the organization and vertical coordination mechanisms in a large number of commodity subsectors, the reasons underlying their existence, and their performance implications. The focus of analysis on the vertically linked stages.of production-processing-distribution within the subsectors was an attempt to expand the frame of reference of traditional organization studies to examine the dynamics of changes in structure, coordination mechanisms, and performance among these vertically linked stages and to assess the impact on the control of productive resources in the food system. The first four papers highlight the dominant organization and coordination features in selected commodity subsectors, the reasons for their dominance, and some noteworthy performance implications. These are drawn from the results of in-depth subsector studies which are being or will be published as NC-117 research monographs.or working papers. The final paper is an initial attempt to compare and contrast the dominant structural, coordination, and performance features of the subsectors considered in the symposium (.plus dairy), to extract the corm1onalities and differences, and suggest some hypotheses regarding th_ose interrelationships which might be~tested as further case studies of commodity subsectors now underway provide additional evidence in the future. We consider it an interim report, and would welcome your comments and suggestions.