Processes of integration in agribusiness

摘要

Agribusiness can be formed into a system only because its links become bound by integration processes. These processes may develop spontaneously, which takes a long time, or be steered and stimulated, which accelerates the formation of agribusiness into a system. In Western Europe the process of formation of agribusiness into a system was accelerated by various forms of co-operative movement and the state. Vertical integration unites economic entities representing various links of agribusiness, whereas horizontal integration, shaping larger economic organisms, increases the propensity towards vertical integration. In this way horizontal integration of farmers within a co-operative or a production team creates conditions fostering vertical integration. Vertical integration is created as a result of the acquisition of property rights, conclusion of a contract, introduction of legal regulations and formation oF strategic associations (strategic network). Vertical integration may be directed backward (when non-agricultural capital is the organiser) or forward (when agricultural capital is the organiser).