From Challenges to Opportunities: Strengthening Local Agri-Food Markets for Sustainable Rural Development

Aleksandr V. Semenov, Aleksandra Figurek () and Elena I. Semenova
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Aleksandr V. Semenov: Department of Technological Development of Rural Life Support Systems, Vernadsky Russian State University of National Economy, 143907 Balashikha, Russia
Aleksandra Figurek: School of Business, GNOSIS Mediterranean Institute for Management Science, University of Nicosia, Nicosia 1700, Cyprus
Elena I. Semenova: Department of Technological Development of Rural Life Support Systems, Vernadsky Russian State University of National Economy, 143907 Balashikha, Russia

Economies, 2025, vol. 13, issue 12, 1-21

Abstract: Local agri-food markets are a key link in the sustainability and resilience of rural communities, as they merge producers and consumers, create jobs and ensure food security. This paper analyzes the state and perspectives of the development of local markets in rural regions of Russia, relying on demographic, economic, structural and innovation indicators. The results show marked regional differences: in urbanized areas the share of the rural population is low and markets are weak, while in Siberia and the Far East, local markets remain vital, albeit under pressure from depopulation. Structural shifts in favor of plant production, along with worsening price parity, indicate reduced profitability of small producers, but also open opportunities for diversification through processing and branding. Analysis of production concentration shows that sectors with more dispersed production (vegetables, milk) enable greater flexibility and resilience of local markets. Highly concentrated sectors remain vulnerable to market shocks. The findings confirm that local markets can be not only guardians of tradition, but also drivers of modernization and growth. The work thereby makes an empirical contribution to the understanding of the sustainability of rural markets and shows that, with targeted policies that link demographic stability, economic incentives, digital tools and ecological practices, local markets can become a pillar of sustainable development and a significant instrument for strengthening the resilience of the agri-food sector in Russia and beyond. Methodologically, the article applies a mixed approach: (i) quantitative analysis of several sets of statistical data (Rosstat, supplementary FAO/OECD/Eurostat) through descriptive indicators and indices (incl. input/output price parity), as well as cluster typology of regions; and (ii) qualitative mapping of findings to contemporary policies and practices. This framework allows structural trends to be directly linked to implications for local food markets.

Keywords: local agri-food markets; demographic decline; input–output price parity; short food supply chains; digitalization & traceability; regional typology; diversification; processing & territorial branding; sustainable rural development (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:13:y:2025:i:12:p:351-:d:1807695

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