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Contributor : FAO-AGS (2008-02-28 15:00:33)
Establishing Clusters: agro-industrial clusters and food parks
The Proposition
Clustering in agro-industry represents an effective means of mobilizing synergies among potential cluster partners in order to enhance and sustain the sector’s competitiveness. For agro-industrial clusters to be successful, the public sector must assume a more assertive and pro-active role than is presently the case in most developing and transition economies.
Rationale and Recommended Response (Click here to read)
Focus of the Debate
What has been your experience with agro-industrial clusters?
Are there any examples of ´good practices´ that you may know?
13 Comments
alfredo haquin , (2008-04-14 19:34:09)
En Paraguay, el gobierno parece no interesarles la formación de cluster y la promoción de la cadena de valor agroindustrial a pesar que es la única opción para salir de la pobreza, y la desocupación. Çaumentar la generación de riqueza y los mejores precios para los productos de origen campesino. Dinamizar la economía y mejorar la renta, tanto de los productores como de los obreros, y generar miles de puestos de trabajo directos e indirectos. He iniciado una cooperativa de trabajadores textiles, que en el año 1998, a raíz de una corrida bancaria y la posterior quiebra de los mismos, trajo aparejada el derrumbre de la industria textil y la consecuente crisis laboral, hoy, estamos intentando comprar un complejo agrotextil asociativo que junto a los campesinos salve la producción algodonera y la posterior textil. Necesitamos que las agencias internacionales se involucren más en este tipo de proyectos que transformen las materias primas del campo para desarrollar bienes industriales sencillos, preferiblemente dirigidos al mercado interno.
En Paraguay, el gobierno parece no interesarles la formación de cluster y la promoción de la cadena de valor agroindustrial a pesar que es la única opción para salir de la pobreza, y la desocupación. Çaumentar la generación de riqueza y los mejores precios para los productos de origen campesino. Dinamizar la economía y mejorar la renta, tanto de los productores como de los obreros, y generar miles de puestos de trabajo directos e indirectos. He iniciado una cooperativa de trabajadores textiles, que en el año 1998, a raíz de una corrida bancaria y la posterior quiebra de los mismos, trajo aparejada el derrumbre de la industria textil y la consecuente crisis laboral, hoy, estamos intentando comprar un complejo agrotextil asociativo que junto a los campesinos salve la producción algodonera y la posterior textil. Necesitamos que las agencias internacionales se involucren más en este tipo de proyectos que transformen las materias primas del campo para desarrollar bienes industriales sencillos, preferiblemente dirigidos al mercado interno.
victor guillen , (2008-04-07 17:02:44)
En panama en años recientes el gobierno ha promovido la clusterizacion en varios sectores entre ellos el agroindustrial. Los ejemplos mas exitosos son los que agrupan a productores y exportadores de cafes especiales en la region occidental del pais y en los que agrupan a productores y exportadores de melon y sandia para la exportacion. El escollo u obstaculo fundamental para el exito del modelo es la cultura empresarial nuestra mas orientada al trabajo individual y no del trabajo en grupo y cooperativo. Estoy de acuerdo en que para que sea exitosa la clusterizacion se debera contar con un fuerte apoyo del gobierno en la fase de promocion y acompañamiento, sobre todo si se trata de pequeños agroindustriales y productores agropecuarios.
En panama en años recientes el gobierno ha promovido la clusterizacion en varios sectores entre ellos el agroindustrial. Los ejemplos mas exitosos son los que agrupan a productores y exportadores de cafes especiales en la region occidental del pais y en los que agrupan a productores y exportadores de melon y sandia para la exportacion. El escollo u obstaculo fundamental para el exito del modelo es la cultura empresarial nuestra mas orientada al trabajo individual y no del trabajo en grupo y cooperativo. Estoy de acuerdo en que para que sea exitosa la clusterizacion se debera contar con un fuerte apoyo del gobierno en la fase de promocion y acompañamiento, sobre todo si se trata de pequeños agroindustriales y productores agropecuarios.
Muhammad Hariyadi Setiawan , (2008-03-27 10:46:28)
Clustering the agro (small) industries can be managed to avoid competition among them while keeping them competitive and giving multiplier impact to other supported business such as packaging industries, transport and logistic and down to the level of marketing and selling with collective outlets/showrooms. In Malang and several districts in East Java-Indonesia there are initiatives to develop clusters for fruit processing (small) industries based on the local comparative fruit products. They can show that it also gives additional value to the producers´ community by transforming fruit farmers to be fruit processors.
Clustering the agro (small) industries can be managed to avoid competition among them while keeping them competitive and giving multiplier impact to other supported business such as packaging industries, transport and logistic and down to the level of marketing and selling with collective outlets/showrooms. In Malang and several districts in East Java-Indonesia there are initiatives to develop clusters for fruit processing (small) industries based on the local comparative fruit products. They can show that it also gives additional value to the producers´ community by transforming fruit farmers to be fruit processors.
Peter Steele , (2008-03-19 10:34:17)
Clustering of like-minded/similar resource-linked agro-industrial ventures takes place over time as markets are exploited and as similar enterprises startup in competition with each other (on the basis of the first exploratory and first successful venture). There is a deal of copycat development in most enterprise ventures, and its not always easy to pioneer something new. The clusters frequently begin alongside main highways and/or in quazi-rural/urban areas where, reasonably, there is access to markets and clients. All this can be directed and/or re-directed by forward-looking public sector investment but, ultimately, it is the private sector that should take control - of all investments/inputs (e.g. funds, technical management, community responsibility and so on). We know some of this from a publication produced a couple of years back; and based on the experience of agro-industrial park development in India. Given the venue of the GAIF, those of you not familiar with the document that was produced may like to source a copy. It was prepared by a local consultant and is available at: http://www.fao.org/ag/ags/publications/en/working_agst.html. Be warned, it runs to >160 pages. Presumably, the GAIF will enable reporting to take our earlier findings further. Check out the other publications too. Peter Steele. Rome. 19/03.
Clustering of like-minded/similar resource-linked agro-industrial ventures takes place over time as markets are exploited and as similar enterprises startup in competition with each other (on the basis of the first exploratory and first successful venture). There is a deal of copycat development in most enterprise ventures, and its not always easy to pioneer something new. The clusters frequently begin alongside main highways and/or in quazi-rural/urban areas where, reasonably, there is access to markets and clients. All this can be directed and/or re-directed by forward-looking public sector investment but, ultimately, it is the private sector that should take control - of all investments/inputs (e.g. funds, technical management, community responsibility and so on). We know some of this from a publication produced a couple of years back; and based on the experience of agro-industrial park development in India. Given the venue of the GAIF, those of you not familiar with the document that was produced may like to source a copy. It was prepared by a local consultant and is available at: http://www.fao.org/ag/ags/publications/en/working_agst.html. Be warned, it runs to >160 pages. Presumably, the GAIF will enable reporting to take our earlier findings further. Check out the other publications too. Peter Steele. Rome. 19/03.
Bill Samuel , (2008-03-19 10:24:02)
This discussion is attracting limited attention, although participants seem to think that it is an important issue. I suspect one of the problems is that there has been very little real analysis of the impact of clusters. Perhaps it is time "SOMEONE" looks at this. Are the costs incurred by governments in setting up agro-industrial clusters justified by the returns in terms of greater efficiency?
This discussion is attracting limited attention, although participants seem to think that it is an important issue. I suspect one of the problems is that there has been very little real analysis of the impact of clusters. Perhaps it is time "SOMEONE" looks at this. Are the costs incurred by governments in setting up agro-industrial clusters justified by the returns in terms of greater efficiency?
Dr. Damian Ihedioha , (2008-03-18 11:25:19)
My experience with agro-clusters is that it is the best way to manage and use infrastructure in the given location. Governments sets the clusters and allow the industries to manage the resources. It is also the best way to achieve standardization/quality of products, where industries in the same cluster ensure that members obey quality specification for their products. They are each others watch dog.
Agro-clusters where they are formidable can serve as a pressure group to government to do what is right to promote the operation of SMEs
My experience with agro-clusters is that it is the best way to manage and use infrastructure in the given location. Governments sets the clusters and allow the industries to manage the resources. It is also the best way to achieve standardization/quality of products, where industries in the same cluster ensure that members obey quality specification for their products. They are each others watch dog.
Agro-clusters where they are formidable can serve as a pressure group to government to do what is right to promote the operation of SMEs
Christian Fischer , (2008-03-11 04:13:48)
Clusters in the agro-industrial context may be of a different nature than in other industries. Traditionally, we would think of a cluster if at a given location producers of raw materials concentrate together with final-product manufacturers and potentially input providers, for instance for packaging materials and/or marketing services. In the end, the manufactured product is shipped to “the rest of the world”. Local consumption is not part of the cluster definition. Yet in agro-industrial clusters the consumption stage may be crucial for the broader regional development. If a region successfully produces food products, very often these find their way into local restaurants or specialised retail outlets. A strong restaurant sector in turn may stimulate or at least contribute to the development of inbound tourism which has broader effect on the local economy. Hence, agro-industrial clusters may require a broader definition, given that most agri-food products are not complex industrial goods and thus the development/manufacturing process is comparatively short. Examples for such successful clusters may be South Australia’s Barossa Valley, California’s costal areas, Scotland’s whisky industry and many municipalities in Italy, France, Spain and Thailand.
Public policy is usually concerned with increasing national or regional competitiveness – i.e., creating jobs and income. It is usually indifferent to whether these jobs are in the manufacturing or service sectors. In order to unleash the full development potential of agro-industrial clusters, policies should consider a broad set of measures for improving both the production and consumption infrastructures. The development process can certainly be stimulated. For example, policy makers can convene (i.e., organise and finance) round tables and serve as “cluster brokers”. In addition, funds (grants or loans) for pilot projects could be offered.
Clusters in the agro-industrial context may be of a different nature than in other industries. Traditionally, we would think of a cluster if at a given location producers of raw materials concentrate together with final-product manufacturers and potentially input providers, for instance for packaging materials and/or marketing services. In the end, the manufactured product is shipped to “the rest of the world”. Local consumption is not part of the cluster definition. Yet in agro-industrial clusters the consumption stage may be crucial for the broader regional development. If a region successfully produces food products, very often these find their way into local restaurants or specialised retail outlets. A strong restaurant sector in turn may stimulate or at least contribute to the development of inbound tourism which has broader effect on the local economy. Hence, agro-industrial clusters may require a broader definition, given that most agri-food products are not complex industrial goods and thus the development/manufacturing process is comparatively short. Examples for such successful clusters may be South Australia’s Barossa Valley, California’s costal areas, Scotland’s whisky industry and many municipalities in Italy, France, Spain and Thailand.
Public policy is usually concerned with increasing national or regional competitiveness – i.e., creating jobs and income. It is usually indifferent to whether these jobs are in the manufacturing or service sectors. In order to unleash the full development potential of agro-industrial clusters, policies should consider a broad set of measures for improving both the production and consumption infrastructures. The development process can certainly be stimulated. For example, policy makers can convene (i.e., organise and finance) round tables and serve as “cluster brokers”. In addition, funds (grants or loans) for pilot projects could be offered.
N.Srinivasan , (2008-03-10 18:46:12)
In my experience, clusters are a practical way forward when it comes to organising small sized agro-enterprises. In milk, cashew, oilseeds and fruitcrops the cluster approach to setting of processing plants and common infrastructure has been quite successful. Considrable cost savings are achieved by raw material producers and enterprises in clusters in acccessing technical services, finance and linkages with the markets. But a critical issue is the need for coordination and concerted action on the part of the enterprises. A support organisation is required in the initial stages of a cluster formation to achieve coordination and cooperation.
In my experience, clusters are a practical way forward when it comes to organising small sized agro-enterprises. In milk, cashew, oilseeds and fruitcrops the cluster approach to setting of processing plants and common infrastructure has been quite successful. Considrable cost savings are achieved by raw material producers and enterprises in clusters in acccessing technical services, finance and linkages with the markets. But a critical issue is the need for coordination and concerted action on the part of the enterprises. A support organisation is required in the initial stages of a cluster formation to achieve coordination and cooperation.
Michele CLARA , (2008-03-10 18:30:43)
The promotion of clusters should be seen as an example of public-private partnership where the burden of initiating and sustaining activities ought to fall, as much as possible, on the private side. There is quite a number of good examples of agro-processing clusters (think of wine or cheese manufacturing in the European context) where the private sector did play a very strong and prolonged effort on product branding (e.g. GI), well before the time when consumers placed a premium on traceability or on product safety.
On the other hand, evidence from many developing counties and UNIDO´s own experience in Latin America and Asia shows that industrial clusters (and not only agro-processing ones) often fail to get their acts together without a good dose of "external" support (i.e. a stronger role of the public sector in the PPP or a development agency called in for the purpose).
I feel the issue can only be resolved with a practical review of the strength of the private sector in each context and of the scope for a sustainable and balanced partnership to be established locally.
The promotion of clusters should be seen as an example of public-private partnership where the burden of initiating and sustaining activities ought to fall, as much as possible, on the private side. There is quite a number of good examples of agro-processing clusters (think of wine or cheese manufacturing in the European context) where the private sector did play a very strong and prolonged effort on product branding (e.g. GI), well before the time when consumers placed a premium on traceability or on product safety.
On the other hand, evidence from many developing counties and UNIDO´s own experience in Latin America and Asia shows that industrial clusters (and not only agro-processing ones) often fail to get their acts together without a good dose of "external" support (i.e. a stronger role of the public sector in the PPP or a development agency called in for the purpose).
I feel the issue can only be resolved with a practical review of the strength of the private sector in each context and of the scope for a sustainable and balanced partnership to be established locally.
Edgar Smith , (2008-03-08 21:14:38)
Agricultural clusters are harder to realise than industrial clusters due to the spatial aspects related to agric production which means that cluster components are spread out and harder to organise.Clusters have evolved in a number of countries ( meat production and processing clusters in the USA,dairy[cheese) clusters in Switzerland, wine clusters in South Africa, Italy, Chile, France)..how can one speed up the pace of cluster development? Does it need a ´promoter´..yes...but who? Leaving it to one party to emerge as the cluster leader and dominant player has the danger of creating unequal relationships between cluster members and subservience of smaller entities to larger ones. Promotion by Governments through bringing potential players together and supporting linkages and the provision of allied services such as research and training support, is one way forward. Clusters enable partnerships to develop and create the critical mass for the entrance of service and input providers.. specialist transport providers, packaging providers etc into the cluster. Geographical indicators ( GI and DOC),organic producers, flower producers, fair trade product producers lend themselves to the creation of clusters.Who will be the catalyst?
Agricultural clusters are harder to realise than industrial clusters due to the spatial aspects related to agric production which means that cluster components are spread out and harder to organise.Clusters have evolved in a number of countries ( meat production and processing clusters in the USA,dairy[cheese) clusters in Switzerland, wine clusters in South Africa, Italy, Chile, France)..how can one speed up the pace of cluster development? Does it need a ´promoter´..yes...but who? Leaving it to one party to emerge as the cluster leader and dominant player has the danger of creating unequal relationships between cluster members and subservience of smaller entities to larger ones. Promotion by Governments through bringing potential players together and supporting linkages and the provision of allied services such as research and training support, is one way forward. Clusters enable partnerships to develop and create the critical mass for the entrance of service and input providers.. specialist transport providers, packaging providers etc into the cluster. Geographical indicators ( GI and DOC),organic producers, flower producers, fair trade product producers lend themselves to the creation of clusters.Who will be the catalyst?
Martin Upton , (2008-03-08 17:10:26)
There is much work on value chains in the poultry industry going on in the animal production and health division of FAO. It is clear that clustering is a general feature of the commercialisation and industrialisation of the poultry industry. It has happened in India, China, Brazil and most other countries where commercial production has developed.
There is much work on value chains in the poultry industry going on in the animal production and health division of FAO. It is clear that clustering is a general feature of the commercialisation and industrialisation of the poultry industry. It has happened in India, China, Brazil and most other countries where commercial production has developed.
Dr. Damian Ihedioha , (2008-03-06 15:03:54)
I do not wholly agree with that, rather agro-industrial cluster is a way of maximizing use of social infrastructure and service markets.
I do not wholly agree with that, rather agro-industrial cluster is a way of maximizing use of social infrastructure and service markets.
David Kahan , (2008-03-03 15:33:49)
The proposition is favourable to agro-industrial clusters as a way of increasing the sector´s competitiveness. Whilst clustering has been effective in non-agricultural industries, the uptake of clusters for agro-industrial development has been slow. What have been the reasons for this apparent failure? Could it be the special nature of the agro-industry sector and if so what is needed to make it more effective?
The proposition is favourable to agro-industrial clusters as a way of increasing the sector´s competitiveness. Whilst clustering has been effective in non-agricultural industries, the uptake of clusters for agro-industrial development has been slow. What have been the reasons for this apparent failure? Could it be the special nature of the agro-industry sector and if so what is needed to make it more effective?
