Economic assessment of the impact of clusters on farm development in Kyrgyzstan

Altynbek Bekmuratov, Kanjarbek Mamashov, Dilfuza Tookeeva, Niiazali Tashiev, Gulnaz Mametova
Download article Read article

Abstract

The purpose of the study was to evaluate the effectiveness of implementing the cluster model in agriculture in Kyrgyzstan, with an emphasis on its impact on productivity, profitability of farms, and competitiveness of the agricultural sector. The research methodology included the evaluation of statistical data of farms in Kyrgyzstan, empirical analysis of the impact of clustering on socio-economic indicators, spatial analysis of cluster distribution, and comparative assessment of successful clustering practices in Central Asian countries (Uzbekistan, Tajikistan, Kazakhstan) and Poland, Croatia, France, Italy, USA, India. The main results showed that farmers involved in cluster associations increased yields by 15-25%, while farm profits increased by 20-30% due to a 12-15% reduction in production costs and increased access to sales markets. In the Chui region, the grain yield in cluster farms reached 6.5 tonnes/ha, which exceeds the national average. Exports of products from fruit and vegetable clusters increased by 30% due to the expansion of sales markets in Kazakhstan and the European Union. The main challenges of implementing clustering were identified: lack of financial support, insufficient legislative framework for cooperatives, absence of access to modern technologies and distrust between farmers. Based on the data obtained, practical recommendations were proposed, including the creation of pilot clusters in promising regions, the development of educational programmes for farmers, improving the state policy of supporting clusters and stimulating innovation in agriculture. Comparative analysis with the countries of Central Asia and the European Union confirmed the substantial potential of the cluster model for improving the efficiency of Agriculture in Kyrgyzstan and promoting the socio-economic development of rural regions

Keywords

agrosphere; regional development; agricultural holding; management strategies; agricultural associations

[1] Adewale, H.A. (2022). A community knowledge-based assessment of smallholder farmers’ perception of cluster farming and its potential role in sustainable accessibility to farmer-centric support in Nigeria (Master’s Thesis, Mohammed VI Polytechnic University, Ben Guerir, Morocco). doi: 10.60763/africarxiv/367.

[2] Amjad, F., Agyekum, E.B., Shah, L.A., & Abbas, A. (2021). Site location and allocation decision for onshore wind farms, using spatial multi-criteria analysis and density-based clustering. A techno-economicenvironmental assessment, Ghana. Sustainable Energy Technologies and Assessments, 47, article number 101503. doi: 10.1016/j.seta.2021.101503.

[3] Azarov, A., Sidle, R.C., Darr, D., Verner, V., & Polesny, Z. (2024). A proposed typology of farming systems for assessing sustainable livelihood development pathways in the Tien Shan mountains of Kyrgyzstan. Land, 13(2), article number 126. doi: 10.3390/land13020126.

[4] Balogh, P., Bai, A., Czibere, I., Kovách, I., Fodor, L., Bujdos, Á., Sulyok, D., Gabnai, Z., & Birkner, Z. (2021). Economic and social barriers of precision farming in Hungary. Agronomy, 11(6), article number 1112. doi: 10.3390/ agronomy11061112.

[5] Beishenaly, N., & Dufays, F. (2021). Development of agricultural cooperatives in Kyrgyzstan: Who are the lead actors? Central Asian Journal of Water Research, 7(2), 138-157. doi: 10.29258/cajwr/2021-r1.v7-2/138157.eng.

[6] Bovsh, L., Rasulova, A., Hopkalo, L., Rasulov, R., & Mouloudj, K. (2024). Intersectoral adaptation of Ukrainian farms in the context of war. Ukrainian Black Sea Region Agrarian Science, 28(1), 52-65. doi: 10.56407/ bs.agrarian/1.2024.52.

[7] Das, G.G., Ginting, E., Horridge, M., & Yamano, T. (2023). Growth constraints and structural diversification for Kyrgyzstan economy: Policy analysis of key reforms and its implications. Essen: GLO Discussion Paper.

[8] Degefu, S., Sileshi, M., & Ogeto, M.A. (2024). Impact of cluster farming on wheat productivity and net benefit among smallholder farmers in Lemu-Bilbilo and Hetosa districts of Arsi Zone, Ethiopia. Discover Food, 4, article number 59. doi: 10.1007/s44187-024-00128-1.

[9] Dooranov, A., Jumabekova, N., Sarygulova, R., Bavlankulova, D., & Dzhylkychieva, Zh. (2024). Economic assessment of the export potential of the Kyrgyz regions: Methodology for calculating and analysing the rating. Scientific Bulletin of Mukachevo State University. Series “Economics”, 11(3), 59-72. doi: 10.52566/msuecon3.2024.59.

[10] Dureti, G.G., Tabe-Ojong, M.P.J., & Owusu-Sekyere, E. (2023). The new normal? Cluster farming and smallholder commercialization in Ethiopia. Agricultural Economics, 54(6), 900-920. doi: 10.1111/agec.12790.

[11] Eurasian Development Bank (EDB). (2025). Retrieved from https://eabr.org/en/about/.

[12] European Commission. (2025). Agriculture and rural development reports. Retrieved from https://agriculture. ec.europa.eu/common-agricultural-policy/cap-overview_en.

[13] Food and Agriculture Organization (FAO). (2024). FAO in Europe and Central Asia 2023doi: 10.4060/cd0146en.

[14] Governmental Decree No. 83 Validating the Regulation on the Ministry of Agriculture, Water Economy and Regional Development. (2021, March). Retrieved from https://www.fao.org/faolex/results/details/en/c/LEXFAOC203113/

[15] Hloušková, Z., & Lekešová, M. (2020). Farm outcomes based on cluster analysis of compound farm evaluation. Agricultural Economics, 66(10), 435-443. doi: 10.17221/273/2020-agricecon.

[16] Karki, L., Shange, R., Hill, W.A., Bonsi, C., English, H., Agbodjan, E., & Idassi, J. (2021). Assessing the impact of cluster farming initiatives on small and socially disadvantaged farmers, ranchers, and forestland owners: A case of the southeastern region of the United States. Professional Agricultural Workers Journal, 7(2), 26-41. doi: 10.22004/ag.econ.312371.

[17] Kassai, M., Kaspar, J., Deif, A., & Smith, H. (2018). Exploring farmers markets as a temporary cluster to improve local food economy. British Food Journal, 120(8), 1844-1858. doi: 10.1108/bfj-03-2018-0169.

[18] Kerimkulova, M., Shakirova, K., Esenalieva, B., Makeeva, S., & Omurova, S. (2023). Manufacturing industry potential of the Kyrgyz Republic in Eurasian economic integration. Sustainable Engineering and Innovation, 5(2), 315-330. doi: 10.37868/sei.v5i2.id252.

[19] Khoshnevisan, B., Rafiee, S., Omid, M., Mousazadeh, H., Shamshirband, S., & Hamid, S.H.A. (2015). Developing a fuzzy clustering model for better energy use in farm management systems. Renewable and Sustainable Energy Reviews, 48, 27-34. doi: 10.1016/j.rser.2015.03.029.

[20] Kozhogulova, V., Mardalieva, L., Kozhomkulova, A., & Sheralieva, Z. (2023). Sustainable development of the agricultural sector of Kyrgyzstan in an integrated environment. AIP Conference Proceedings, 2612, article number 030021. doi: 10.1063/5.0113043.

[21] Kumar, S., Craufurd, P., Haileslassie, A., Ramilan, T., Rathore, A., & Whitbread, A. (2019). Farm typology analysis and technology assessment: An application in an arid region of South Asia. Land Use Policy, 88, article number 104149. doi: 10.1016/j.landusepol.2019.104149.

[22] Kurdyś-Kujawska, A., Strzelecka, A., & Zawadzka, D. (2021). The impact of crop diversification on the economic efficiency of small farms in Poland. Agriculture, 11(3), article number 250. doi: 10.3390/agriculture11030250.

[23] Lan, L., Sain, G., Czaplicki, S., Guerten, N., Shikuku, K.M., Grosjean, G., & Läderach, P. (2018). Farm-level and community aggregate economic impacts of adopting climate smart agricultural practices in three mega environments. PLoS ONE, 13(11), article number e0207700. doi: 10.1371/journal.pone.0207700.

[24] Mamasydykov, A.A., Abdiev, M.Z., Attokurova, G.M., & Abrakhmanov, O.E. (2019). Development of export potential of processing companies on the cluster basis with the help of quality management. International Journal for Quality Research, 13(4), 931-946. doi: 10.24874/IJQR13.04-13.

[25] Ministry of Agriculture & Farmers Welfare. (2025). Retrieved from https://services.india.gov.in/service/ ministry_services?cmd_id=11&ln=en.

[26] Ministry of Agriculture of the Republic of Kazakhstan. (2025). Retrieved from https://www.gov.kz/memleket/ entities/moa/about?lang=en 

[27] Ministry of Agriculture of the Republic of Tajikistan. (2025). Retrieved from https://moa.tj/vazorat/16nizomnoma.html.

[28] Ministry of Agriculture of the Republic of Uzbekistan. (2025). Retrieved from https://gov.uz/oz/agro/pages/ about.

[29] Muñoz-Ulecia, E., Bernués, A., Casasús, I., Olaizola, A., Lobón, S., & Martín-Collado, D. (2020). Drivers of change in mountain agriculture: A thirty-year analysis of trajectories of evolution of cattle farming systems in the Spanish Pyrenees. Agricultural Systems, 186, article number 102983. doi: 10.1016/j.agsy.2020.102983.

[30] National Statistical Committee of the Kyrgyz Republic. (2025). Main macroeconomic indicators in January 2025. Retrieved from http://www.stat.kg/.

[31] Petrač, M., Zmaić, K., & Žgajnar, J. (2024). Strategic categorization of dairy cow farms in Croatia using cluster analysis. Business Systems Research Journal, 15(2), 140-153. doi: 10.2478/bsrj-2024-0021.

[32] Poczta, W., Średzińska, J., & Chenczke, M. (2020). Economic situation of dairy farms in identified clusters of European Union countries. Agriculture, 10(4), article number 92. doi: 10.3390/agriculture10040092.

[33] Righi, E., Dogliotti, S., Stefanini, F., & Pacini, G. (2010). Capturing farm diversity at regional level to up-scale farm level impact assessment of sustainable development options. Agriculture Ecosystems & Environment, 142(1-2), 63-74. doi: 10.1016/j.agee.2010.07.011.

[34] Rola-Rubzen, M.F., et al. (2013). Impacts of clustering of vegetable farmers in the Philippines. In J. Oakeshott & D. Hall (Eds.), Smallholder HOPES – horticulture, people and soil: Proceedings of ACIAR-PCAARRD Southern  Philippines fruits and vegetables program meeting (pp. 190-202). Cebu: Australian Centre for International Agricultural Research.

[35] Sakkaraeva, D., & Kumashev, M. (2024). Analysis of the agro-industrial sector of the Kyrgyz Republic. Ekonomika APK, 31(2), 41-50. doi: 10.32317/2221-1055.202402041.

[36] Sporysz, M., Szczuka, M., Tabor, S., Molenda, K., & Kuboń, M. (2020). Cluster analysis in assessment of organic farms sustainability. Part II results of research. Agricultural Engineering, 24(1), 79-89. doi: 10.1515/ agriceng-2020-0008.

[37] Sydykova, M., & Rodríguez, C. (2014). Regional development based on cluster in livestock development. Cluster in livestock sector in the Kyrgyz Republic. Review of Agricultural and Applied Economics, 17(2), 103-112. doi: 10.22004/ag.econ.196624.

[38] Tarrant, K.A., & Armstrong, D.P. (2012). An economic evaluation of automatic cluster removers as a laboursaving device for dairy farm businesses. Australian Farm Business Management Journal, 9(1), 43-48. doi: 10.3316/ informit.665000353438910.

[39] Tefera, G.N., Aredo, M.K., Nejo, Z.S., & Ibrahim, K.J. (2023). Impact of wheat cluster farming practice on smallholder’s asset building in Arsi zone of Ethiopia. Journal of Business and Economic Development, 8(1), 1-11. doi: 10.11648/j.jbed.20230801.12.

[40] United States Department of Agriculture (USDA). (2025). Retrieved from https://www.usda.gov/about-usda/ general-information.

[41] Uzenbaev, R.A., Mardalieva, L.A., Abdiev, M.Z., Umarov, S.T., & Ergeshov, K.A. (2019). Prospects for development of Kyrgyzstan’s food market in the conditions of integration in the EAEU. Studies in Computational Intelligence, 826, 859-869. doi: 10.1007/978-3-030-13397-9_88.

[42] Zeleke, A.Z., & Wordofa, M.G. (2024). Contribution of cluster farming to household economy in Ethiopia: A systematic review. Agricultural Systems, 221, article number 104146. doi: 10.1016/j.agsy.2024.104146.

[43] Zhao, L., Ruan, J., & Shi, X. (2021). Local industrial policies and development of agricultural clusters: A case study based on a tea cluster in China. The International Food and Agribusiness Management Review, 24(2), 267-288. doi: 10.22434/ifamr2019.0154.

Bekmuratov, A., Mamashov, K., Tookeeva, D., Tashiev, N., & Mametova, G. (2025). Economic assessment of the impact of clusters on farm development in Kyrgyzstan. Scientific Horizons, 28(2), 157-169. https://doi.org/10.48077/scihor2.2025.157