Finance

XYZ, Inc. is a large producer of chicken for grocery stores. It usually engages in a long-term contract with these stores to maintain demand for its product. However, XYZ, Inc. is regularly plagued with rising and falling prices for its supplies: particularly chicken feed and new chicks. Should XYZ vertically integrate upstream, building or buying a hatching company and an animal feed company? What are the pluses and minuses of such a decision?