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What is the development impact of vertical coordination in agricultural value chains in LMICs?

Insights from the literature

Authors
Greetje Schouten, Verena Bitzer, Jaap Voeten
Publication year
October 2025

This literature review examines how vertical coordination—tighter corporate control across agricultural value chains—affects development outcomes in low- and middle-income countries. 

Having reviewed 19 academic studies on evidence-based outcomes of vertical coordination, the focus of the analysis is on three main impact areas: (1) local economic development, (2) local job creation, and (3) the inclusion of smallholder farmers.

This to distil the potential benefits and unintended (negative) consequences of vertical coordination in LMICs and identify strategies for a better design of vertical coordination which businesses can apply in search of greater supply chain stability.