Vertical integration as future strategy to increase value absorption of primary producers: the Belgian sugar beet and the German rapeseed case

Vertical integration is a means to increase market power. While for some agricultural products it is easier for farmers to exert control over their product beyond the farm gate, for others it is more difficult. The latter instance shows two main characteristics. First, the farmer cannot sell the respective product to final consumers without processing. Second, processing is capital intensive. Consequently, farmers have limited sales channels, and vertical integration of the supply chain is a complex and therefore, challenging task. It implies cooperation among farmers to process the raw materi... Mehr ...