Vertical Integration
For investors vertical integration makes sense. Integrating primary agriculture and further processing provides attractive and steady long-term returns on the capital invested. Integrated food production additionally allows for supply chain control and supply chain resilience. It creates as a solid hedge against inflation and economic turmoil.
There are many options when further processing is considered:
- Dairy plant
- Potato and vegetable wash & pack
- Slaughterhouse & meat processing
- French fries plant
- Canning factory
- Starch plant
- Lettuce wash, cut & pack
AgrInvest has in-depth knowledge on most processing activities and can additionally rely on a very experienced specialist network that includes Wageningen University & Research.
When the pre-feasibility phase has been completed the next step would be to do a feasibility study, followed by a business plan. A feasibility study allows an investor to make a well educated decision either to continue with the project or cancel it. Whereas a business plan is more detailed and serves to obtain grants or loans, as a base for project implementation and an operational guideline. The two can be combined. For feasibility studies and business planning AgrInvest refers to affiliated company Agrix F&A Project Development
