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D-vertical-integration Dictionary

Vertical integration

One firm controlling several stages of a value chain, from inputs to retail

All termsIntroduced in Module 4Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
One firm controlling several stages of a value chain, from inputs to retail
How to use it
Where integrators dominate a chain, decide whether to supply them under contract or to serve the customers they do not reach.
South African benchmark
South Africa's broiler industry is highly vertically integrated, as Article 80 explains.
Country notes
Poultry in Zambia and Namibia and sugar across the region are dominated by integrated groups.
Go and read
C4
Calculate it
No calculator; the term is applied in the venture plan narrative.
Library sources
LIB-A047, LIB-A055
See also
Contract grower, Outgrower
Route from farm gate to consumer with each party’s share of the priceFrom farm gate to buyer: who takes a share of the priceYour farmfarm-gate priceTransportR per tonne-kmMarket agentcommission %Retaileror processorConsumershelf priceFarmTransportAgentRetailShare of the shelf price (illustrative split)Selling closer to the consumer keeps more of the price on the farm, but adds cost and work.
From Module 4, Getting to the Buyer, where this term is introduced.

Introduced in C4 Getting to the Buyer.