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Local vertical integration: solution for increasing added value

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2026 March 03

Vertical integration involves linking primary production with processing and marketing. According to European Commission analyses on the functioning of the agri-food chain, farms or producer groups that retain multiple links in the value chain capture a larger share of the economic value.

In Romania, the dominant model remains the sale of raw materials to intermediaries or processors. In the absence of integration, farmers are exposed to volatility and operate with limited margins.

Integration does not necessarily require major industrial investments. It may involve primary processing, the development of a local brand, or direct contracts with regional retail. However, this model requires capital, organization, and managerial expertise.

For 2026, increasing value added in agriculture depends on the ability to move beyond an exclusively primary production model. Vertical integration remains one of the structural directions for development.

(Photo: Freepik)

 

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