Agro-holdings in Russia, Ukraine and Kazakhstan: temporary phenomenon or permanent business form? Farm-level evidence from Moscow and Belgorod regions

Andriy Matyukha, Peter Voigt and Axel Wolz

Post-Communist Economies, 2015, vol. 27, issue 3, 370-394

Abstract: The transition process did not affect the organisation of agricultural production as originally anticipated. Since the late 1990s, in Russia and some other CIS countries, numerous large-scale agro-holdings emerged which agglomerated multiple farms, entities of the upstream and downstream sectors of agribusiness, as well as non-agricultural industries. Owing to the common practice of registering such affiliated farms/firms as independent business units, data on agro-holdings' aggregate group performance are extremely scarce. It is therefore difficult to capture their emergence, determinants of growth and developmental prospects.This study is based on a unique panel dataset from Moscow and Belgorod regions. The growth trajectories of farms affiliated to agro-holdings vis-�-vis independent farms were investigated by applying a quantile regression approach. Overall, only minor differences were found. Any advantages of affiliated farms appear to be due to extramural factors; i.e. it is all about how to link individual production units, thus benefiting from strong positioning in local and regional markets and making the most of lobbying and ties to relevant politicians. In sum, agro-holdings are expected to remain as a model for organising agricultural production.

Date: 2015
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DOI: 10.1080/14631377.2015.1055976

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