Forming Agro Industries clusters for reaching competitiveness of Ukrainian Agro industrial sector

Abstract

The article deals with the theoretical principles of forming the Agro Industries clusters in the context of the innovative aspect. Being one of Ukraine’s major sources of economic revenue, the country’s agro industrial sector proved, at the same time, to be perhaps the most vulnerable branch of economy in the times of political and social turbulence. While the state is searching for ways of strengthening its positions in the global market, its agricultural potential to a considerable extent remains both under- and misused. In recent years, the cluster approach has become a key instrument of municipal economic policies for the leading industrialized countries. Utilizing the experience of other European countries, with regards to making agriculture more sustainable and competitive in the modern world, the author describes the ways of applying these practices against the background of Ukrainian agribusiness system. Proposed within this study is innovative research, presented as adaptation policy measures, for clustering Ukrainian agribusiness and the structure of corn production cluster in Ukraine. Also proposed are basic elements of government policy for supporting the development of agriculture. In addition, ways of creating the Agro Industries clusters are described. The advantages of forming clusters and possibility of the cluster approach in the organization and management of Agro Industries operations are considered.