The potential for vertical integration in agriculture investment

[Johnson2468]

Vertical integration is the process of merging two or more stages of a supply chain to gain control over the production and distribution of a product. In the context of agriculture, this refers to grouping under a single organization or firm various stages of the farming process, from production through processing and distribution. More efficiency, lower costs, and improved quality control could result from this, increasing investor returns. Also, by building a diversified portfolio within the agriculture industry, vertical integration can lower risk for investors. Investors can lessen the influence of outside factors that could only have an impact on one portion of the supply chain by making investments in both agricultural and processing.

 

[Reedex]

There is huge potential in agricultural investment and the earlier we tap into the opportunity, the better.