Placement and concentration in agriculture: latest trends (case study by Russian egg poultry)

Abstract

The article presents the results of research on the location and territorial concentration in agriculture. The research object is egg poultry farming, which has been one of the most stable agriculture branches in Russia for decades. The method of modified location quotients was used to analyze territorial concentration. The analysis showed that the placement of egg poultry had changed drastically in 2004–2019. Russian regions have employed opposed strategies. In many regions, egg poultry farms have been closed or repurposed. Several regions are successfully developing the industry, and egg production in these territories is several times higher than domestic needs. Ten regions of Russia with a location quotient higher than 2.0 were identified. The volume of interregional exchange is growing at a faster pace. In 2004, the regions exported 30% of the egg production, and by 2019, the share increased to 51%. Location specialization and optimization of egg farms provide economic and social benefits. With the growth of the size of enterprises, their financial stability increases. Cost-saving opportunities, increased egg production, and competition between producers in the domestic market help to hold prices down.