Challenges of vertical integration of supply chains' members of food and organic products with domestic origin

Abstract

This research is focused on the possibility of applying the process of vertical cooperation and/or integration of members of the supply chain of products with domestic origin in the AP Vojvodina market so that create and preserve the long-term competitive advantage. The primary task is to research the current state of the AP Vojvodina food and organic products market through the analysis of individual productivity and profitability assessment of the participants in the supply chain: trade enterprises, producers (processors) of food and organic products, and agricultural enterprises. The results showed that the financial indicators of productivity and profitability are statistically significantly related to the type of business activity, and that the application of an adequate model of vertical cooperation and integration of the observed groups of participants can increase the income of all participants and, consequently, increase their productivity and profitability. Special attention is paid to the legislation of vertical integration in accordance with the legislation of the Republic of Serbia and the EU.

Keywords

• vertical integration
• products of domestic origin
• trade companies
• producers
• agricultural enterprises
• ap vojvodina