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Abstract
Vertical coordination refers to the allocation of resources across successive stages of a food supply system. Methods of coordination include open production, contract production, and vertical integration. With changes in consumer preferences for food products over the past several decades, open-market exchanges have given way to contract production and vertical integration. These developments may continue in the future as consumers demand specific product attributes and technological advances enable added control over farm product attributes and flows. Changes in methods of vertical coordination raise important policy issues.