Economic assessment of the impact of clusters on farm development in Kyrgyzstan

Abstract

The purpose of the study was to evaluate the effectiveness of implementing the cluster model in agriculture in Kyrgyzstan, with an emphasis on its impact on productivity, profitability of farms, and competitiveness of the agricultural sector. The research methodology included the evaluation of statistical data of farms in Kyrgyzstan, empirical analysis of the impact of clustering on socio-economic indicators, spatial analysis of cluster distribution, and comparative assessment of successful clustering practices in Central Asian countries (Uzbekistan, Tajikistan, Kazakhstan) and Poland, Croatia, France, Italy, USA, India. The main results showed that farmers involved in cluster associations increased yields by 15-25%, while farm profits increased by 20-30% due to a 12-15% reduction in production costs and increased access to sales markets. In the Chui region, the grain yield in cluster farms reached 6.5 tonnes/ha, which exceeds the national average. Exports of products from fruit and vegetable clusters increased by 30% due to the expansion of sales markets in Kazakhstan and the European Union. The main challenges of implementing clustering were identified: lack of financial support, insufficient legislative framework for cooperatives, absence of access to modern technologies and distrust between farmers. Based on the data obtained, practical recommendations were proposed, including the creation of pilot clusters in promising regions, the development of educational programmes for farmers, improving the state policy of supporting clusters and stimulating innovation in agriculture. Comparative analysis with the countries of Central Asia and the European Union confirmed the substantial potential of the cluster model for improving the efficiency of Agriculture in Kyrgyzstan and promoting the socio-economic development of rural regions