Research Reports
Formation and Development of Regional Agricultural Cluster
-
AuthorKim, Jeongho
-
Publication Date2004.12.01
-
Original
ABSTRACT
Formation and Development of Regional Agricultural Cluster
This study ultimately aims at finding directions for formation and development of agriculture-related cluster in order to reinforce agricultural sector in local areas. In doing so, this study tries to apply the concept of industrial cluster to agricultural sector and suggests strategies to improve agricultural policies based on the analysis of application feasibility and conditions.
The concept of industrial cluster has been introduced by the Porter's study on Silicon Valley. Beyond the role of simple industrial estate to reduce production and transaction costs, many people regard it as an origin for technological innovation and knowledge creation. It has been discussed in Korea since 2001 and the Ministry of Agriculture and Forestry (MAF) started to consider the application of this concept to the agricultural sector since 2004 based on the report on the development strategy for regional agricultural clusters.
This study points out that ‘regional agricultural cluster’ should be replaced with ‘agri-industrial cluster’, and defines it as “the place, where all kinds of agriculture-related businesses engaged in production, processing and marketing of local specialities; universities; research institutes; and regional administrations; and agencies form a network and generate synergic effects of regional agricultural innovation through competition and cooperation.” This study also argues that it would be a good signal for agricultural development, if the agri-industrial cluster closely connects farming with other activities and then establishes a leading group for the regional agriculture through the networking of participants.
Since the agri-industrial cluster is now in the initial stage, there exist various types of the clusters:
1)Production and marketing-led cluster : with a priority given to producers of certain commodities, it forms a horizontal network with exporting and marketing agencies and businesses.
2)Processing-led cluster : with a priority given to processors of certain commodities, it forms a vertical network with those who develop simplified processing and the high-tech life industry.
3)Theme-led cluster : without the priority given to commodities, it firstly sets up a common theme from diverse agricultural assets and commodities, and forms a horizontal network with those who are involved in production, marketing, tourism and other service activities and businesses.
This study has taken a look at three case studies including green tea in Boseong, black raspberry in Gochang and Anseong co-operative as the three types of agri-industrial cluster.
The essence of industrial cluster policy is to reinforce the networking between participating groups, and the purpose is to support creative growth of economic elements by way of eliminating unstable factors from the regional agricultural system. The agri-industrial cluster does not try to establish a new industry, but it tries to improve and reinforce the existing businesses specified to the concerned area.
From the point of view, the policy to foster the agri-industrial clusters should consider the followings:
1)The policy should start with defining the range of clusters and find out identity of the participants. Accordingly, it would be desirable that the agri-industrial clusters are found for those which have matured local products.
2)Since the formation and development of agri-industrial cluster entirely depends on the capability of local governments, the priority should be given to provide the local governments with the foundation to build such clusters.
3)The central government should set out a national framework so that agri-industrial clusters could easily take a root in local areas.
4)It is very important to clearly define the role of participating players within a cluster and the close networks between the individual players shall be further developed.
Researchers: Jeong-Ho Kim, Moon-Ho Park and Tae-Yeon Kim
E-mail Address: jhkim@krei.re.kr
- Next
- A Study on the Introduction of Regional Maximum Load System of Livestock Numbers
- Prev
- A Public Survey on Multi-functionality of Agriculture