CHE 3172 Chapter : Photo 49
Document Summary
Allowing industries to be monopolized by these huge vertically integrated farms: stocking rates are higher in louisiana for example compared to missouri because we have more nutrients per acre. Intro: vertical integration the control of two adjacent stages in the vertical marketing channel from producers to consumers, contract integration the company may contract out part of the whole business to individuals. Incentives: ownership integration the company owns all the stages. Perspectives: vertical integration of pork and beef: production characteristics, disincentives. Main purpose of vertical integration is to control cost, control consistency, and. Examples: smoked pork chops brings extra value out of product: beef low, pork moderate, poultry high, examples: case-ready products hickory smoked bacon, sausage, etc, examples: buffalo chicken, chicken nuggets, new product development, beef slow, pork moderately aggressive, poultry very aggressive, brand marketing, beef low, pork moderate, poultry high.
