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

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  • Andriy Matyukha
  • Peter Voigt
  • Axel Wolz

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-à-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.

Suggested Citation

  • Andriy Matyukha & Peter Voigt & Axel Wolz, 2015. "Agro-holdings in Russia, Ukraine and Kazakhstan: temporary phenomenon or permanent business form? Farm-level evidence from Moscow and Belgorod regions," Post-Communist Economies, Taylor & Francis Journals, vol. 27(3), pages 370-394, September.
  • Handle: RePEc:taf:pocoec:v:27:y:2015:i:3:p:370-394
    DOI: 10.1080/14631377.2015.1055976
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    References listed on IDEAS

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    1. Wandel, Jurgen, 2009. "Agroholdings And Clusters In Kazakhstan’S Agro-Food Sector," IAMO Discussion Papers 91766, Institute of Agricultural Development in Transition Economies (IAMO).
    2. Wandel, Jürgen, 2011. "Integrierte Strukturen im Agrar- und Ernährungssektor Russlands: Entstehungsgründe, Funktionsweise, Entwicklungsperspektiven und volkswirtschaftliche Auswirkungen. Band I und II," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 63, number 63.
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    Cited by:

    1. Gagalyuk, Taras, 2017. "Strategic role of corporate transparency: the case of Ukrainian agroholdings," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 257-278.
    2. Gagalyuk, T., 2018. "A resilience-based rationale for farm growth: the case of Ukrainian agroholdings," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277115, International Association of Agricultural Economists.
    3. Taras Gagalyuk, 2017. "Project Review: International Competence Center on Large Scale Agriculture at the Leibniz Institute of Agricultural Development in Transition Economies," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(2), pages 147-150, May.
    4. Gagalyuk, Taras, 2016. "Strategic role of corporate transparency: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(2), November.

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