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Vertical Integration of Production Agriculture Into Value-Added Niche Markets: The Case of Wheat Montana Farms & Bakery

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  • Gary W. Brester

Abstract

This case considers the complex decision making required to vertically integrate forward from the production of raw agricultural commodities into value-added niche markets. Wheat Montana Farms & Bakery evolved from a traditional wheat-production farm business. Wheat Montana's initial experience with vertically integrated niche marketing involved the production of differentiated specialty wheats. Eventually, the company entered the specialty-flour, bakery-products, and food-service industries. Future success hinges critically upon decisions regarding growth, human resource and risk management, market expansion, and land and machinery acquisitions.

Suggested Citation

  • Gary W. Brester, 1999. "Vertical Integration of Production Agriculture Into Value-Added Niche Markets: The Case of Wheat Montana Farms & Bakery," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 276-285.
    • Handle: RePEc:oup:revage:v:21:y:1999:i:1:p:276-285.
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    File URL: http://hdl.handle.net/10.2307/1349986
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    Cited by:

    1. Traversac, Jean-Baptiste & Rousset, Sylvain & Perrier-Cornet, Philippe, 2011. "Farm resources, transaction costs and forward integration in agriculture: Evidence from French wine producers," Food Policy, Elsevier, vol. 36(6), pages 839-847.
    2. Rachael E. Goodhue & Carlo Russo, 2011. "Modeling Processor Market Power and the Incidence of Agricultural Policy: A Nonparametric Approach," NBER Chapters, in: The Intended and Unintended Effects of US Agricultural and Biotechnology Policies, pages 51-81, National Bureau of Economic Research, Inc.
    3. Worley, C. Thomas & McCluskey, Jill J., 2000. "Production Contracts As A Means Of Vertical Coordination With Application To The Wheat Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 31(1), pages 1-10, March.
    4. Phillips, Jon C. & Peterson, H. Christopher, 2004. "Product Differentiation and Target Marketing by Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-11.
    5. Roberts, Shane & Brooks, Kathleen & Nogueira, Lia & Walters, Cory G., 2022. "The role of quality characteristics in pricing hard red winter wheat," Food Policy, Elsevier, vol. 108(C).
    6. Loureiro, Maria L. & Hine, Susan, 2002. "Discovering Niche Markets: A Comparison of Consumer Willingness to Pay for Local (Colorado Grown), Organic, and GMO-Free Products," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(3), pages 477-487, December.
    7. Brent Hueth & Maro Ibarburu & James Kliebenstein, 2007. "Marketing Specialty Hogs: A Comparative Analysis of Two Firms from Iowa," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 720-733.
    8. W. H. Furtan & J. Sauer, 2008. "Determinants of Food Industry Performance: Survey Data and Regressions for Denmark," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 555-573, September.
    9. Furtan, H. & Sauer, J., 2009. "Determinants of Food Industry Performance – Survey Data and Regressions for Denmark," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 44, March.
    10. Nicholson, Charles F. & Stephenson, Mark W., 2006. "Financial Performance and Other Characteristics of On-Farm Dairy Processing Enterprises in New York, Vermont and Wisconsin," Research Bulletins 121583, Cornell University, Department of Applied Economics and Management.
    11. Furtan, William Hartley & Sauer, Johannes, 2008. "Determinants of Food Industry Performance – Empirical Evidence Based on a Survey," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6422, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Phillips, Jon C. & Peterson, H. Christopher, 2001. "Segmentation And Differentiation Of Agri-Food Niche Markets: Examples From The Literature," Staff Paper Series 11481, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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