CLUSTER APPROACH TO AGRICULTURAL DEVELOPMENT

Abstract

Agriculture, as the core of the modern economy, faces unique and increasingly complex challenges that require
innovative solutions.[3] Increasing competition in the world market, the need to solve problems of national food security
and adapt to the conditions of joining the World Trade Organization (WTO) prove the relevance of innovative development
of agricultural production. One of these areas is the formation of clusters in the agro-industrial complex. The concept of
“cluster” is revealed, its elements and characteristics are considered, and the results of research by domestic and foreign
scientists on the role of clusters in the economy are summarized. The differences between clusters and vertically integrated
organizations are determined and the conclusion is made that, in a generalized form, clusters are characterized by more
democratic management, management decision-making, innovative focus and the creation of opportunities for innovative
development of all participants. As for the definition of agro-industrial clusters, they are proposed to be considered as
regional associations of enterprises with the aim of increasing the competitiveness of products and stimulating innovative
activities in the agro-industrial sector. The work establishes the relevance of the formation of agro-industrial clusters in food
subcomplexes, where the production of raw materials before the sale of finished products represents a single reproduction
cycle based on the intensification of investment activity and the introduction of innovations. The positive and negative
aspects of agricultural clusters are highlighted. In modern conditions, the traditional method of dividing the economy into
industries or divisions does not make sense. Within the framework of an innovation-oriented economy, agricultural clusters
represent a higher level of development of integration processes in the agro-industrial complex, and their presence is the
main condition for the high-quality development of agriculture.