Economic Justification of the Territorial Grain Cluster

Abstract:

The development of grain economy is an important condition for providing food security of the country. Its qualitative development is possible in the presence of the necessary resources that need to be accumulated in favorable territories – territorial clusters. The purpose of the research is to substantiate the territorial grain cluster, which will significantly improve the economic efficiency of grain production in the Nizhny Novgorod region and as a consequence the level of its food independence. The authors used data on the grain market capacity in the Nizhny Novgorod region over the past 5 years. The criteria for the allocation of the territorial cluster were the market concentration coefficient, the concentration coefficient of the three largest organizations and the Herfindahl-Hirschman index. The paper substantiates the territorial grain cluster in the Nizhny Novgorod region, eight organizations which control more than 20% of the regional grain market. On the basis of the data obtained, its cartogram was developed. It is determined that in the studied region the influence of large organizations on the situation of the grain market increases, which leads to the formation of oligopoly and its further monopolization. The identified trend may have a negative impact on the development of the market.