Forming Agroindustries Clusters for Reaching Competitiveness of Ukrainian Agroindustrial 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 agroindustrial 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 the ways of strengthening its positions at the global market, its agricultural potential to a considerable extent remains both under- and misused. The cluster approach has become in recent years as a key instrument of municipal economic policies of 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. Innovation of our research presented as adaptation policy measures for clustering Ukrainian agribusiness and the structure of corn production cluster in Ukraine is proposed. The basic elements of government policy in supporting the development of agricultural clusters are proposed. The ways of creating the Agro Industries clusters are described. Advantages of forming clusters and possibility of the cluster approach in the organization and management of Agro Industries operations are considered.