The Theoretical and Methodological Basis for the Formation of Clusters in Livestock Production

Under modern conditions of agrarian production, especially during the post-wartime recovery of Ukraine, it will be extremely important to find effective models of management that ensure sustainability, competitiveness, and the development of rural areas. One such model is the cluster approach in animal husbandry, which is based on the unification of producers, processors, logistics companies, research institutions, and authorities around common economic interests. In this context, as the formation of clusters becomes relevant in the terms of European integration processes, domestic animal husbandry must adapt to the requirements of quality, safety, and environmental responsibility. Therefore, researching the mechanisms of creation and effective functioning of clusters in the animal husbandry sector is not only scientifically substantiated but also practically necessary. The aim of this publication is to examine the theoretical and methodological approaches to the essence of cluster associations and their significance in the field of animal husbandry and the processing of animal products. The article surveys the essential features and approaches to defining the concept of «cluster». The article explores the essence of clusters in the context of agro-industrial production development and reveals the aspects of clustering that contribute to the sustainable development of the agrarian sector of the national economy in Ukraine. The article identifies the general economic and social prerequisites for the formation of clusters as innovation-oriented business structures. It is proved that the cluster approach serves as one of the key tools for enhancing the competitiveness of the agrarian sector, effective resource management, and the implementation of innovations in livestock and agro-processing. It is noted that the functioning of cluster associations integrates a number of key elements: innovation system, technical and technological infrastructure, multi-sectoral and multifunctional character, organizational and managerial integration, cluster core, rational planning, marketing and sales infrastructure, investment project design, and financial engineering mechanisms. The cluster serves as a comprehensive platform for the transformation of the livestock industry, capable of ensuring sustainable productivity growth; reducing costs per unit of product; deep processing and increasing added value; integration into global supply chains; and ecological modernization of production.