Market developments in pork production: an economic analysis of the vertical commitment in the supply chain

In recent years the inclusion of farmers in integrated supply chains has been one of the main research topics in agribusiness. Many researchers have pleaded for a stronger vertical binding by contract farming or vertical integration. Respective schemes from the poultry industry or from abroad (e. g. the Danish pork production) have often served as models. The following contribution deals with this hypothesis and on the basis of newer economic and behavioural theories phrases some critical questions regarding contract farming. By the example of pork production it is shown that there are good reasons for the still widely spread uncommitted production in Germany. Results from an extensive survey among pork producers support this hypothesis.

Vollversion deutsch