IDEAS home Printed from
   My bibliography  Save this paper

From Farmers to Consumers: Vertical Coordination in the Food Industry


  • Martinez, Steve W.
  • Reed, Al


Vertical coordination refers to the allocation of resources across successive stages of a food supply system. Methods of coordination include open production, contract production, and vertical integration. With changes in consumer preferences for food products over the past several decades, open-market exchanges have given way to contract production and vertical integration. These developments may continue in the future as consumers demand specific product attributes and technological advances enable added control over farm product attributes and flows. Changes in methods of vertical coordination raise important policy issues.

Suggested Citation

  • Martinez, Steve W. & Reed, Al, 1996. "From Farmers to Consumers: Vertical Coordination in the Food Industry," Agricultural Information Bulletins 309735, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersab:309735
    DOI: 10.22004/ag.econ.309735

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    References listed on IDEAS

    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. Powers, Nicholas J., 1994. "Marketing Practices for Vegetables," Agricultural Information Bulletins 309719, United States Department of Agriculture, Economic Research Service.
    3. Thomas L. Sporleder, 1992. "Managerial Economics of Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1226-1231.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Lipton, Kathryn L., 1998. "The Food and Fiber System: Contributing to the U.S. and World Economies," Agricultural Information Bulletins 33761, United States Department of Agriculture, Economic Research Service.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Barkema, Alan & Drabenstott, Mark & Cook, M. L., 1993. "The Industrialization of the U.S. Food System," Food and Agricultural Marketing Issues for the 21st Century - FAMC 1993 Conference 265920, Food and Agricultural Marketing Consortium (FAMC).
    3. Jordaan, Daniel du Plessis Scheepers & Kirsten, Johann F., 2008. "Investigating alternative governance systems for the South African mohair supply chain," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(2), pages 1-27, June.
    4. Barry, Peter J., 1995. "Industrialization Of U.S. Agriculture: Policy, Research, And Education Needs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-8, April.
    5. Altair Dias de Moura & Sandra Martin & Diane Mollenkopf, 2009. "Product specification and agribusiness chain coordination: introducing the coordination differential concept," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 112-127.
    6. repec:bas:econth:y:2012:i:4:p:78-104 is not listed on IDEAS
    7. CHINAKI Christina & SERGAKI Panagiota, 2018. "Potentials and Pitfalls of Contract farming through Agricultural Cooperatives in Greece," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 27(1), pages 111-122.
    8. Hrabrin BACHEV, 2010. "Framework For Analisis Of Agrarian Contracts," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 2(1), pages 39-66, March.
    9. Bachev, Hrabrin, 2003. "Организация На Снабдяването С Финанси В Българските Ферми [Governing of finance supply in Bulgarian farms]," MPRA Paper 99340, University Library of Munich, Germany.
    10. Bachev, Hrabrin, 1996. "Organisation of agrarian transactions in transitional economies," MPRA Paper 99499, University Library of Munich, Germany.
    11. Anderson, John D. & Trapp, James N., 1999. "Estimated Value of Non-Price Vertical Coordination in the Fed Cattle Market," Staff Papers 232529, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    12. Bachev, Hrabrin, 1995. "Икономически Измерения На Аграрните Транзакции [Economic dimensions of agrarian transations]," MPRA Paper 76471, University Library of Munich, Germany.
    13. Anderson, John D. & Lacy, Curt & Forrest, Charlie S. & Little, Randall D., 2003. "Stocker Cattle Ownership Vs. Contract Grazing: A Comparison Of Risk-Adjusted Returns," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35055, Southern Agricultural Economics Association.
    14. Hrabrin Bachev, 2009. "Mechanisms Of Governance Of Sustainble Development," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum).
    15. Adams, Claire-Louise & Goldsmith, Peter D., 1999. "Conditions For Successful Strategic Alliances In The Food Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(2), pages 1-28.
    16. Adu-Gyamfi Poku & Regina Birner & Saurabh Gupta, 2018. "Making Contract Farming Arrangements Work in Africa’s Bioeconomy: Evidence from Cassava Outgrower Schemes in Ghana," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-21, May.
    17. Young, Linda M. & Hobbs, Jill E., 2000. "Public Policy Responses To Increased Vertical Linkages In Agri-Food Supply Chains," Research Discussion Papers 29237, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    18. Jeffrey S. Royer, 1995. "Potential for cooperative involvement in vertical coordination and value-added activities," Agribusiness, John Wiley & Sons, Ltd., vol. 11(5), pages 473-481.
    19. Lajili, Kaouthar & Barry, Peter J. & Sonka, Steven T. & Mahoney, Joseph T., 1997. "Farmers' Preferences For Crop Contracts," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(2), pages 1-17, December.
    20. Hrabrin Bachev, 2017. "Supply Chain Risk Management – Agri-Food Implications," Noble International Journal of Business and Management Research, Noble Academic Publsiher, vol. 1(1), pages 10-30, January.
    21. S. Freguin-Gresh & M. d'Haese & W. Anseeuw, 2012. "Demythifying contract farming: Evidence from rural South Africa," Agrekon, Taylor & Francis Journals, vol. 51(3), pages 24-51, September.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersab:309735. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.