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Vertical cooperation in agricultural production-marketing chains, with special reference to product differentiation in pork

Author

Listed:
  • M. den Ouden

    (Dept. of Farm Management, Wageningen Agricultural University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands)

  • Aalt A. Dijkhuizen

    (Dept. of Farm Management, Wageningen Agricultural University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands)

  • Ruud B.M. Huirne

    (Dept. of Farm Management, Wageningen Agricultural University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands)

  • Peter J.P. Zuurbier

    (Dept. of Farm Management, Wageningen Agricultural University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands)

Abstract

Optimization of individual stages within a production-marketing chain (PMCh) may cause a suboptimal result of the PMCh as a whole. Market imperfections and conflicting interest may be the causal factors. Although vertical integration is often mentioned as the conventional solution, certain disadvantages and the large scale differences in agricultural PMChs make vertical cooperation a more appropriate alternative. Moreover, specific characteristics of agricultural food chains and changing market circumstances, including increased interest in the quality of products and production processes, justify renewed attention to vertical cooperation and product differentiation in agriculture. Current developments in the Dutch pork PMCh and implications on future research are described. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • M. den Ouden & Aalt A. Dijkhuizen & Ruud B.M. Huirne & Peter J.P. Zuurbier, 1996. "Vertical cooperation in agricultural production-marketing chains, with special reference to product differentiation in pork," Agribusiness, John Wiley & Sons, Ltd., vol. 12(3), pages 277-290.
    • Handle: RePEc:wly:agribz:v:12:y:1996:i:3:p:277-290
    DOI: 10.1002/(SICI)1520-6297(199605/06)12:3<277::AID-AGR7>3.0.CO;2-Y
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    References listed on IDEAS

    as
    1. Mighell, Ronald L. & Jones, Lawrence A., 1963. "Vertical Coordination in Agriculture," Agricultural Economic Reports 307164, United States Department of Agriculture, Economic Research Service.
    2. Perry, Martin K., 1989. "Vertical integration: Determinants and effects," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 4, pages 183-255, Elsevier.
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    Cited by:

    1. Girgzdiene, Vilija & Hartmann, Monika & Kuodys, Arvydas & Vaikutis, Viktoras & Wandel, Jurgen, 1999. "Industrial Organisation Of The Food Industry In Lithuania: Results Of An Expert Survey In The Dairy And Sugar Branch," IAMO Discussion Papers 14904, Institute of Agricultural Development in Transition Economies (IAMO).
    2. Schulze, Birgit & Spiller, Achim & Theuvsen, Ludwig, 2006. "More Trust Instead of More Vertical Integration in the German Pork Production? Empirical Evidence and Theoretical Considerations," 99th Seminar, February 8-10, 2006, Bonn, Germany 7756, European Association of Agricultural Economists.
    3. Revoredo-Giha, Cesar & Lamprinopoulou-Kranis, Chrysa & Leat, Philip M.K. & Kupiec-Teahan, Beata & Toma, Luiza & Cacciolatti, Luca, 2009. "How Differentiated Is The Scottish Beef? An Analysis Of Supermarket Data Panel," Working Papers 109392, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    4. Goethals, Frank & Leclercq-Vandelannoitte, Aurélie & Tütüncü, Yazgi, 2012. "French consumers' perceptions of the unattended delivery model for e-grocery retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 133-139.
    5. Ding, Huiping & Fu, Yanan & Zheng, Lucy & Yan, Zhu, 2019. "Determinants of the competitive advantage of dairy supply chains: Evidence from the Chinese dairy industry," International Journal of Production Economics, Elsevier, vol. 209(C), pages 360-373.
    6. Góngora, R. & Milán, M.J. & López-i-Gelats, F., 2019. "Pathways of incorporation of young farmers into livestock farming," Land Use Policy, Elsevier, vol. 85(C), pages 183-194.
    7. Girgzdiene, Vilija, 1999. "Industrial organisation of the food industry in Lithuania: results of an expert survey in the dairy and sugar branch," IAMO Discussion Papers 21, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    8. Theuvsen, Ludwig & Franz, Annabell, 2007. "The Role and Success Factors of Livestock Trading Cooperatives: Lessons from German Pork Production," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(3), pages 1-23.
    9. Domagalska-Grędys, Marta, 2020. "Evaluation Of Dimensions Of Farmer Attitudes In Principal Component Analysis (Pca)," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(1).
    10. Imre Ferto & Gabor G. Szabo, 2002. "Vertical Co-ordanitaion in Transition Agriculture: a Hungarian Cooperative Case Study," CERS-IE WORKING PAPERS 0210, Institute of Economics, Centre for Economic and Regional Studies.
    11. Pieniadz, Agata & Hockmann, Heinrich, 2004. "Pricing behaviour in the Polish pork market during transition," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 71.
    12. Olasunkanmi M. Bamiro & Adebayo M. Shittu, 2009. "Vertical integration and cost behavior in poultry industry in Ogun and Oyo States of Nigeria," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 1-15.
    13. Pieniadz, Agata & Hockmann, Heinrich, 2002. "Product Differentiation on the Polish Pig Meat Market," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24959, European Association of Agricultural Economists.
    14. Gabor G. Szabo & Krisztina Bardos, 2005. "Vertical Coordination by Contracts in Agribusiness - An Empirical Research in the Hungarian Dairy Sector," CERS-IE WORKING PAPERS 0515, Institute of Economics, Centre for Economic and Regional Studies.
    15. Angelo Arcuri & Lorenzo Giolli, 2022. "The relationship between upstream vertical integration and environmental sustainability in the luxury fashion industry," SN Business & Economics, Springer, vol. 2(7), pages 1-20, July.
    16. Deepak Bhagat & U.R. Dhar, 2014. "Relationship Dynamics in the Pineapple Supply Chain: Empirical Evidence from the Garo Hills of Meghalaya," Global Business Review, International Management Institute, vol. 15(4), pages 747-765, December.
    17. Deimel, Mark & Theuvsen, Ludwig & Ebbeskotte, Christof, 2008. "Von der Wertschöpfungskette zum Netzwerk: methodische Ansätze zur Analyse des Verbundsystems der Veredelungswirtschaft Nordwestdeutschlands," DARE Discussion Papers 0810, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    18. Raper, Kellie Curry & Black, J. Roy & Hogberg, Michael & Hilker, James H., 2005. "Assessing Bottlenecks in Vertically Organized Beef Systems," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(1), pages 1-5, March.
    19. Sara Rodríguez & Lluis Plà & Javier Faulin, 2014. "New opportunities in operations research to improve pork supply chain efficiency," Annals of Operations Research, Springer, vol. 219(1), pages 5-23, August.
    20. Kohne, Manfred, 2001. "Perspektiven der landwirtschaftlichen Betriebslehre," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(04), pages 1-10.
    21. Cheng Yuanyuan & Wang Chonghu, 2017. "Empirical Research on the Influence Factors of Fresh Agricultural Products Circulation Ability and Regional Differences," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(7), pages 147-153, July.

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