Closer vertical co‐ordination in agri‐food supply chains: a conceptual framework and some preliminary evidence

Closer vertical co‐ordination of supply chains is becoming a prevalent feature in the agri‐food sectors of many countries. Presents a framework within which to analyse these changes. The framework links drivers for change to product characteristics, which in turn affect transaction characteristics and transaction costs, thereby leading to a change in vertical co‐ordination. A case study of the US grains industry provides an illustration of the framework. Implications for agricultural producers, producer groups and policy makers are discussed.