Agroindustrial project analysi

116 AGROINDUSTRIAL PROJECT ANALYSISthe implications such power holds for the project's raw materialsupply. The plant's major alternative to using the existing structureis backward vertical integration, and the desirability of this alternativeshould be assessed in relation to control, capital requirements,flexibility, costs, social effects, and political feasibility. Projectanalysts should also determine whether producers are, or could be,grouped into cooperative organizations and how such organizationswould affect the agroindustry's procurement system. One last optionanalysts should explore in examining a project's procurementactivities is the possibility of farmers' integrating vertically forwardinto processing.