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ORIGINAL ARTICLE
DEVELOPMENT OF VERTICAL INTEGRATION IN AGRIBUSINESS WITH SPECIAL REGARD TO MEAT INDUSTRY
Dariusz Strzębicki 1
 
 
 
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The Warsaw University of Life Sciences / Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
 
 
Publication date: 2018-07-11
 
 
Corresponding author
Dariusz Strzębicki   

dr inż. Dariusz Strzębicki, Warsaw University of Life Sciences, Faculty of Economic Sciences, Nowoursynowska St. 161, 02-787 Warsaw, Poland; phone: +48 22 59 34 166
 
 
Economic and Regional Studies 2014;7(3):27-40
 
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References (28)
 
KEYWORDS
vertical integration
transaction cost theory
food product chain
meat industry
 
ABSTRACT
The aim of the article is to identify factors determining the development of vertical integration in agribusiness. The main focus of the study is placed on the meat industry. It describes important economic theories and conceptions which provide explanation of vertical integration processes in economy. Vertical integration is a method of exchange organization and it may result from problems with making transactions on the market or problems with contracting. The decision on whether to introduce vertical integration is influenced by many production, market and management factors. Uncertainty caused by technological changes and difficulties in coordination of sales among the stages of food supply chains have a considerable impact on vertical integration in agribusiness. Integrators in agribusiness are usually large food industry companies which benefit greatly from vertical integration.
 
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