Upstream vertical integration strategy for dairy industries in the Bejaia region

Abstract

The strategy of the local dairy industries is part of a vertical integration approach to meet the need for raw materials generated by their dependence on imported milk powder. In the context of upstream vertical integration, the relationship with breeders-suppliers is crucial and can even determine the degree of such integration.

This work aims to study the importance of vertical integration upstream of the dairy industries of the Bejaia region through the analysis of the results of a field survey on the nature of existing contracts between the local dairy industries and their supplier-breeders.

Our results thus confirm the findings already established by several studies across the Algerian territory due to the vulnerability of the dairy-supplier relationships.