Beyond Vertical Integration: Vertical Coordination as a Way to Capture Market Value

摘要

In the future, vertical coordination will consist of complex production, commodity marketing and licensing agreements. Vertical integration in the food, agricultural and bio-fuels (FAB) industries has been a topic of much focus and discussion over thepast several years. The increased use of vertical integration within the sector has often been seen as a way for companies to increase value captured in a product and improve efficiencies in production, among numerous other reasons. However, due to thenumber of challenges faced by those engaged in vertical integration, more attention should be given to the idea of vertical coordination. Vertical coordination may be a path more appropriate for companies within the FAB industry to ensure they capture areturn on their investment, while avoiding many of the concerns and challenges associated with vertical integration.