Vertical integration: forward vs backward

Asian Agribiz Podcasts

Experts have suggested that broiler producers in Indonesia do what CP, Japfa, and Malindo do: invest in a vertically integrated operation to optimize cost efficiency along the supply chain and survive in the long run.

This message has been reverberating for years and is frequently offered as the solution when the industry suffers oversupply and poor prices. A huge investment is a major limitation for many producers.