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From Farmers to Consumers: Vertical Coordination in the Food Industry

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  • Martinez, Steve W.
  • Reed, Al

Abstract

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
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    References listed on IDEAS

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    Cited by:

    1. Strzebicki, Dariusz, 2013. "Economic Considerations Of Entering Into Agricultural Procurement Contracts For Agricultural Goods," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 6(4).
    2. Rehber, Erkan, 2000. "Vertical Coordination In The Agro-Food Industry And Contract Farming: A Comparative Study Of Turkey And The Usa," Research Reports 25225, University of Connecticut, Food Marketing Policy Center.
    3. 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.
    4. Goldsmith, Peter D. & Bender, Karen, 2003. "Ten Conversations about Identity Preservation: Implications for Cooperatives," 2003 Annual Meeting, October 29 31803, NCERA-194 Research on Cooperatives.
    5. Sporleder Thomas L. & Boland Michael A., 2013. "Seven fundamental economic characteristics exclusivity of agrifood supply chains (part 1)," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 3 (35), pages 238-246.
    6. Clare A. Narrod & Keith O. Fuglie, 2000. "Private investment in livestock breeding with implications for public research policy," Agribusiness, John Wiley & Sons, Ltd., vol. 16(4), pages 457-470.
    7. 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.
    8. Davies, Terry & Konisky, David M., 2000. "Environmental Implications of the Foodservice and Food Retail Industries," Discussion Papers 10761, Resources for the Future.
    9. E. Veselská, 2005. "The process of vertical coordination and its consequences within the beer commodity chain," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 51(9), pages 419-426.
    10. R. Knoeber, Charles, 2000. "Les contrats de production dans l'agriculture americaine. Une caracterisation de la recherche empirique actuelle," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 259.
    11. Martinez, Steve & Zering, Kelly, 1997. "Vertical Coordination and Consumer Welfare: The Case of the Pork Industry," Agricultural Economic Reports 262048, United States Department of Agriculture, Economic Research Service.
    12. R. Knoeber, Charles, 2000. "Les contrats de production dans l'agriculture américaine. Une caractérisation de la recherche empirique actuelle," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 259.
    13. Sazzad Parwez, 2016. "A Conceptual Model for Integration of Indian Food Supply Chains," Global Business Review, International Management Institute, vol. 17(4), pages 834-850, August.
    14. Sporleder, Thomas L. & Boland, Michael A., 2011. "Exclusivity of Agrifood Supply Chains: Seven Fundamental Economic Characteristics," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(5), pages 1-15, December.
    15. Siros Tongchure, 2013. "Cassava Smallholders’ Participation in Contract Farming in Nakhon Ratchasrima Province, Thailand," Journal of Social and Development Sciences, AMH International, vol. 4(7), pages 332-338.
    16. Martinez, Steve & Davis, David E., 2002. "Farm Business Practices Coordinate Production With Consumer Preferences," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 25(01).
    17. Liang, Qiao & Hendrikse, George W. J. & Huang, Zuhui, 2010. "Value added and governance structure: Evidence from the pear industry in China's Zhejiang province," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52708, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    18. Martinez, Stephen W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economic Reports 34051, United States Department of Agriculture, Economic Research Service.
    19. Charles R. Knoeber, 2000. "Les contrats de production dans l'agriculture américaine. Une caractérisation de la recherche empirique actuelle," Économie rurale, Programme National Persée, vol. 259(1), pages 3-15.
    20. Hendrikse, G.W.J. & Bijman, W.J.J., 2000. "Ownership Structure in Agrifood Chains," ERIM Report Series Research in Management ERS-2000-15-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    21. C. Hinrichs & Rick Welsh, 2003. "The effects of the industrialization of US livestock agriculture on promoting sustainable production practices," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 20(2), pages 125-141, June.

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