Formation of agro-industrial clusters as the factor of ensuring food supply security of the Republic of South Ossetia

Cluster development of the economic industries has proved effective (consistent) within the last few decades due to synergetic effect of the activities of the various enterprises both in internal and external contour of the cluster. The efficiency of agro-industrial cluster acquires a significant role thanks to the key role of the industry for ensuring food supply security. The basis of the present paper is formed with scientific works of researchers, specializing in this sphere, as well as statistical data of the Republic of South Ossetia. Food supply security itself plays a paramount role in the development of the young state – the Republic of South Ossetia. The present article presents optimal forms of cluster entities for the effective operation of agrarian industry and the increase of the food supply security level of the republic. The practice of the neighboring country, Russian Federation, and other countries, where agro-industrial clusters are formed and considerable attention is paid to government support of the agro-industrial complex, serves as an example. Indicators of production of agricultural products in the republic are due to constant change, and the government support of this cluster covers less than 1% of combined expenses of the budget. However, it is relevant to draw a conclusion that this cluster is first priority, taking into consideration the fact, that the amount of subsidized loans is the highest in the agricultural cluster. Although subsidized loans for entrepreneurs is a significant form of government support, a necessity still stands for forming clusters with a distinct structure for elaboration of a comprehensive approach to the problem solution with the industry being under-developed. The article presents a specific scheme of the cluster, providing, according to the authors, for a more effective functioning of the industry.

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