Agro-holdings in Russia: Temporary phenomenon or a prevailing business form?

Since the 1990s, in Russia, numerous large scale agro-holdings emerged, which link various farms, entities of the upstream and downstream sectors, and even totally unrelated industries. As all these affiliates are legally registered as independent units, there is only scant information about the holdings' overall performance. Based on a unique panel data set from Moscow and Belgorod regions, we investigated the growth trajectories of farms belonging to agro-holdings vis-à-vis independent farms by applying a quantile regression approach. Evidence points to little differences among general performance indicators of both types. 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 the lobbied ties to the relevant politics. In sum, agro-holdings are assumed to remain as a model for organizing agricultural production.

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Conference Paper/ Presentation
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JEL Codes:
O13; P32; Q13

 Record created 2017-04-01, last modified 2018-01-22

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