Vertical Coordination In Agribusiness PDF Download

This report describes the nature of vertical linkages in agriculture, ranging from spot markets to vertical integration, and discusses factors leading to increased vertical co-ordination. It then reviews the applied & theoretical literature relating to vertical co-ordination, including transaction cost economics, strategic management theory, and convention theory. A conceptual framework is also developed for examining the forces behind closer vertical relations. The framework has four components: environmental drivers, product & transaction characteristics, and vertical co-ordination mechanisms. The framework is applied to the United States corn & soybean sectors to reveal the importance of technological change. Finally, the report examines the implications of closer vertical linkages for pricing, government policy, and markets.