The role of clusters in the agro-industry

Abstract

According to researches of clusters, Porter defines clusters as «geographic concentrations of interconnected companies and institutions in a particular field». Cluster in agro industry involves a complex of agricultural productions, concomitant productions, service providers, and associated institutions. Efficiency of clusters formation is influenced by the following factors: specific character of basic production; products innovation; pattern of production; competition and level of its development. Clusters increase the productivity, competitiveness of the region, attract foreign investment and enhancing external integration. The development of agro industrial clusters is an important agenda for governments and companies.