Abstract

In recent years, academics and business managers have shown a growing interest for vertical coordination in the food system. Structural changes that are occurring in the food system have driven this growing interest. The food system has traditionally operated in an open production system, relying on price signals to coordinate the activities in a chain of production. However, the use of contract production and vertical integration has expanded as coordination mechanisms. According to several authors, changes in food demand as well as new technology that allows farm product differentiation are the driving forces towards a more tightly integrated market structure (e.g. Barkema and Drabenstott, 1995; Martinez, 1996). Others claim that the role of more discriminating consumer demand is overemphasised; cost minimisation can also motivate more vertical alignment (Rhodes, 1993; Caswell, 1996).

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.