Will vertical integration reduce Marine Harvest's volatility?

Marine Harvest confirmed its ambitious value chain expansion plans: Downstream into processing with the pending takeover of Morpol and upstream into fish feed with greenfield feed plants. But to what extent will value chain expansion mitigate volatility and improve returns?

I estimate food retailers control more than two thirds of the salmon value chain -- comparable to other seafood and agricultural value chains. The actual production of salmon only accounts for around 13 percent of the value chain, followed by processing and distribution at 12 percent and raw material and fish feed production at 6 percent.

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