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At the same time, contracts and vertical integration give additional chances for coordination which could foster gains in efficiency that could in the long run advantage producers, processors, and buyers. For the discussion of the consequences of enhanced focus and coordination on producer selling prices and returns and policy solutions to handle slender markets, see:

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Foodstuff and beverage producing vegetation remodel raw agricultural materials into products and solutions for intermediate or remaining intake by applying labor, equipment, Strength, and scientific knowledge. Some products and solutions may well function inputs for even more processing (for example syrup for producing soda).

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Consolidation is happening in many meals processing industries, where plant dimensions have increased sharply and mergers have resulted in less but larger companies. In several scenarios, shifting processing plant technologies and also the emergence of recent scale economies has facilitated consolidation.

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