Canadian Journal of Agricultural Economics, Volume 42, Issue 4, December 1, 1994, pages 577-582. Copyright © 1994 Canadian Agricultural Economics Society. Published by Blackwell Publishing Group. The definitive version is available at http://dx.doi.org/10.1111/j.1744-7976.1994.tb00052.x.
NOTE: At the time of publication, the author Wayne H. Howard was not yet affiliated with Cal Poly.
Participants in Canada's agri0food sector have been averse to vertical collaboration for too long. The sector's history of producer marketing boards that were concerned with obtaining bargaining power to redress the market power of buyers has created attitudes the market power of buyers has created attitudes towards buyers and sellers that increase the risk that agri-food organizations will underestimate the advantages of vertical strategic alliances and overestimate the difficulty of building such relationships. However, in spite of the prevailing attitude among participants in Canada's agri-food sector, many organizations have nurtured vertical alliances. This paper develops a framework for understanding how vertical strategic alliances can be created and illustrates it using case studies of organizations in Canada's agri-food sector that have created successful vertical strategic alliances (VSAs). Brief descriptions of the organizations involved in the case studies and the key characteristics of their VSAs are provided in Table 1.
Agribusiness | Agricultural and Resource Economics | Business