Clustering as a promising form of organic agricultural production in Ukraine

Abstract

This article analyses the state of organic agricultural production, using the development and operation of agricultural clusters as an example. The aim of the study is to summarise the experience of clustering in the agro-industrial sector and to analyse the structure of the agricultural cluster for organic vegetable production. Among the tasks set to achieve this aim were: summarising global experience of the cluster approach in the management of economic activity, particularly in the agricultural sector; examining the history of the clustering process and the prospects for the development of agricultural clusters in Ukraine (using the Southern region as an example), and analysing the structure of the agricultural cluster for the production of organic vegetable products. Enhancing the competitiveness of the vegetable sector in Southern Ukraine and the region itself is relevant in the context of creating regional agricultural clusters for the production of organic vegetable products, which combine scientific, educational, logistical and marketing functions with the involvement of consulting, financial and certification bodies. The operation of regional agricultural clusters, including organic ones, will help ensure that the consumer market is well-supplied with vegetable produce, particularly organic produce, meet consumer demand for high-quality and safe vegetable produce, and strengthen the region’s export sector. Furthermore, the operation of the agricultural cluster will help to meet the interests—including social, economic and environmental ones—of all market participants. Agricultural clusters represent one of the most promising forms of collaboration between the state and the agribusiness sector, where specialisation and the concentration of production, the incorporation of innovative research from scientific institutions, and the establishment of closed production cycles ensure increased competitiveness and profitability of products. The article examines the experience of European Union countries in supporting regional clusters and the potential for applying this experience to the development of individual regions and the strengthening of business positions.