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Towards an agroholding typology: differentiating large farm companies in Russia and Ukraine

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  • Brian, Kuns
  • Visser, Oane

Abstract

A significant post-Soviet agricultural trend is the rise of super-large scale agroholdings. The emergence of these farming companies has occasioned a debate on whether such farms are economically and socially optimal: are they are more efficient than smaller scale farms, and are they squeezing out smaller producers from the market? In this debate, 'agroholding' is used as a blanket term covering a diversity of different types of farms. This was adequate when this trend was first emerging, but now it is increasingly inadequate to describe the many different types of farms with different orientations that are developing. With the purpose of better defining different kinds of large-scale farms in the former Soviet Union, we propose in this research to develop a critical and empirically grounded typology of different farm companies, differentiating farms according to degree and kind of integration (horizontal or vertical), main orientation (primary crop production or food processing), and origin of capital (foreign, local, stock market, private equity). These distinctions will help to distinguish more successful business models from less successful, provide greater understanding of recent trends in the agricultural sector in the region, and help understand the future role such farm organizations might have in food production.

Suggested Citation

  • Brian, Kuns & Visser, Oane, 2016. "Towards an agroholding typology: differentiating large farm companies in Russia and Ukraine," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236326, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc16:236326
    DOI: 10.22004/ag.econ.236326
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    References listed on IDEAS

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    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Deininger, Klaus & Nizalov, Denys & Singh, Sudhir K, 2013. "Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship," Policy Research Working Paper Series 6544, The World Bank.
    3. David Epshtein & Konstantin Hahlbrock & Jürgen Wandel, 2013. "Why are agroholdings so pervasive in Russia's Belgorod oblast '? Evidence from case studies and farm-level data," Post-Communist Economies, Taylor & Francis Journals, vol. 25(1), pages 59-81, March.
    4. Klaus Deininger & Denys Nizalov & Sudhir K Singh, 2013. "Are mega-farms the future of global agriculture? Exploring the farm size-productivity relationship for large commercial farms in Ukraine," Discussion Papers 49, Kyiv School of Economics.
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    Cited by:

    1. Hermans, Frans L. P. & Chaddad, Fabio R. & Gagalyuk, Taras & Senesi, Sebastian & Balmann, Alfons, 2017. "The emergence and proliferation of agroholdings and mega farms in a global context," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(2), April.

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    Keywords

    Agricultural and Food Policy; Agricultural Finance;

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