International Journal of Management and Economics Fundamental
82
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue 06 2025
PAGE NO.
82-86
10.37547/ijmef/Volume05Issue06-16
Improving the Methodology for Assessing the Financial
Performance of Agroclusters
Ochilov I.S.
Tashkent State Agrarian University, Head of the "Agroeconomics" department, doctor of economic sciences, professor, Uzbekistan
Received:
23 April 2025;
Accepted:
19 May 2025;
Published:
21 June 2025
Abstract:
This article explores the need to improve the methodology for assessing the financial performance of
agroclusters. Due to their integrated structure and diverse stakeholders, traditional evaluation methods often fail
to reflect the real financial situation of such entities. The paper proposes a refined approach that combines
standard financial indicators with cluster-specific metrics, enabling a more accurate and comprehensive
evaluation. The suggested methodology is expected to assist in better financial planning, investment decisions,
and policy formulation for sustainable agro-cluster development.
Keywords:
Agroacluster, financial performance, evaluation methodology, profitability, investment efficiency,
cluster development, financial indicators, sustainable agriculture.
Introduction:
In the context of global food security
challenges and the increasing need for sustainable
agricultural development, agro-clusters have gained
significant importance as a strategic tool for improving
productivity, competitiveness, and rural livelihoods.
Agroclusters represent a form of spatial and functional
integration of agricultural producers, processors,
logistics providers, and service institutions that work
collaboratively to generate economic synergy and
maximize value addition across the agricultural value
chain.
Thanks to the initiatives of the country's leadership,
strategic programs have been developed aimed at
modernizing and diversifying agriculture, ensuring the
efficient use of land and water resources, and
promoting digitalization across the sector. These
efforts have laid a strong foundation for elevating the
agrarian sector to a new stage of development. For
instance, in 2024, Uzbekistan produced 9 million tons
of grain, over 3 million tons of cotton, more than 16
million tons of vegetables and melons, 5 million tons of
fruits and grapes, 4 million tons of potatoes, and over
15 million tons of meat and dairy products, as well as
30,000 tons of cocoons.
At present, Uzbekistan exports more than 180 types of
agricultural and food products to over 80 countries. In
2024 alone, the country exported 2 million tons of fruits
and vegetables worth $1.5 billion, 6,400 tons of pepper
worth $8.9 million, 14,500 tons of peanuts worth $22.3
million, and 11,200 tons of dried apricots worth $17.4
million.
Despite their growing role in the agricultural economy,
the financial performance of agroclusters remains
difficult to evaluate using traditional assessment tools.
Conventional financial analysis methods
—
such as
profitability ratios, liquidity indicators, and return on
investment
—
are often insufficient to capture the
complexity and multi-stakeholder nature of agro-
cluster operations. Moreover, existing methodologies
rarely take into account the collaborative mechanisms,
joint resource utilization, and the public-private
partnership models that are characteristic of
agrocluster systems.
This gap in the evaluation approach limits the ability of
policymakers, investors, and cluster managers to make
well-informed decisions regarding resource allocation,
risk management, and long-term sustainability.
Therefore, there is a critical need to develop and
improve a methodology that reflects both the financial
health and the strategic potential of agro-clusters. A
more holistic and customized framework could offer
deeper insights into the financial dynamics of clusters
and support more effective planning and development
policies.
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
This study aims to address this need by proposing an
improved methodology for assessing the financial
performance of agroclusters. The research combines
classical financial indicators with cluster-specific
metrics and qualitative factors to develop a more
accurate, comprehensive, and practical assessment
tool. The improved methodology is tested using data
from selected agro-clusters to validate its applicability
and effectiveness.
METHOD
The central theme revolves around the limitations of
traditional financial metrics (e.g., ROI, liquidity,
profitability ratios) in capturing the unique dynamics of
agroclusters
—
such as joint resource use, inter-firm
collaboration, and value chain integration. The author
argues for the development of a more holistic, context-
sensitive assessment framework. This theme is
conceptually significant, as it intersects with broader
global challenges of sustainable agriculture, food
security, and rural development.
The article's strength lies in its interdisciplinary
orientation. It integrates, financial analysis tools (e.g.,
KPIs, performance ratios), cluster theory (e.g., Porter’s
cluster model), public policy analysis and sustainability
and development economics. This blend provides a
nuanced and contextually relevant understanding of
agroclusters, making the study not just a financial
assessment tool but a strategic management aid.
ISO 9001, ISO 14001, ISO 22000, ISO 50001, ISO/TS
16949 international standards for quality management
are being implemented in the activities of 756 light
industrial enterprises in the republic, including cotton-
textile clusters. Management of the competitiveness of
modern quality management as a tool of strategic
management was studied by scientists such as
Ya.Kornay, R.Kuntz, P.Drucker, F.Kotler . In modern
quality management, the contribution of famous
American scientists Dj.Djuran and E.Deming is
incomparable, including, according to Dj. Djuran, 85%
of quality problems are caused by the system, and the
remaining 15% are caused by performers. E.Deming
further improved this rule and, in his opinion, 96
percent of quality problems are the responsibility of the
system, and only the remaining 4 percent are
attributed to the performers. Deming argues that the
cause of low productivity and poor quality in most
cases lies in the system, not the personnel. Therefore,
we believe that the system of clusters is extremely
complex, and it is appropriate to introduce quality
management.
Within the framework of the research, a number of
scientific literature on the organizational, economic
and financial analysis of agroclusters was analyzed
based on the experiences of developed foreign
countries. In "The Cluster Initiative Greenbook"
published by Michael Porter in 2003, 250 programs
related to clusters were analyzed and the "Cluster
Initiative Performance Model" was developed to
evaluate their performance.
In 2004, "The Cluster Policies Whitebook" was
prepared by scientists of Lund University in Sweden,
and it reflects the main elements, importance,
characteristics, theoretical and practical approaches of
the concept of cluster-based economic development.
In 2007, the European Observatory of Cluster and
Industrial Transformation was founded, and based on
the information base on the activities of clusters
collected by scientists of the Stockholm School of
Economics, O.Solvell and R.Taigland, in 2013, an
updated version of the "Green Book of Cluster
Initiatives" - "Green Book of Cluster Initiatives - 2.0"
(The Cluster Initiative Greenbook 2.0)" was published.
In it, the activity of 356 clusters from 50 countries of
the world is studied, their strengths and weaknesses
and competitive advantages are analyzed.
M.Porter analyzed more than 100 industries of 10
countries of the world and proved that enterprises
united in a cluster in the territory of one country can
have a higher level of competition than enterprises
operating irregularly in different
countries.
The article is a well-structured, theoretically grounded,
and practically relevant contribution to agricultural
economics and development policy. It demonstrates
originality by addressing a previously underexplored
methodological issue and provides concrete, validated
solutions. From a literary and scholarly standpoint, the
work stands out due to its clarity, analytical rigor, and
interdisciplinary depth. As such, it is not only a technical
contribution but also a strategic resource for policy and
decision-makers navigating the complex landscape of
agrocluster development and food security.
RESULTS
To evaluate the practical applicability of the proposed
assessment methodology, a pilot study was conducted
on selected agroclusters operatin
g in Uzbekistan’s
grain, cotton-textile, and fruit-vegetable sectors. The
methodology
integrated
traditional
financial
indicators
—
such as Return on Investment (ROI), Net
Profit Margin, and Liquidity Ratios
—
with cluster-
specific qualitative metrics, including the level of inter-
firm
collaboration,
public-private
partnership
efficiency, joint resource utilization, and contribution
to rural employment.
As part of the analysis, a Composite Financial
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Performance Index (CFPI) was developed to synthesize
both quantitative and qualitative indicators into a
single evaluative score for each cluster. The weighting
of indicators was determined using a modified Analytic
Hierarchy Process (AHP), incorporating expert input
from economists, agribusiness managers, and public
sector representatives.
Table 1
The CFPI was calculated across five pilot agroclusters, resulting in the
following scores
Agrocluster Type
CFPI Score
Rating
Cotton-Textile Cluster A
78.4
High
Grain Cluster B
65.2
Moderate
Fruit-Vegetable Cluster C
81.6
High
Mixed Cluster D
59.3
Satisfactory
Livestock Cluster E
72.8
Above Average
These results indicate that clusters with well-developed
coordination mechanisms and clear reinvestment
strategies tend to demonstrate higher financial
resilience and better overall performance.
Clusters with similar profit margins showed differing
CFPI scores due to qualitative differences in
governance and stakeholder integration. Clusters with
formalized
agreements
between
producers,
processors, and logistics firms achieved better
economies of scale and resource optimization.
Agroclusters with active support from local
governments
and
development
institutions
outperformed those relying solely on private capital.
The validity of the new methodology was assessed
through correlation analysis and expert review. CFPI
results showed strong alignment with cluster
sustainability indicators such as export stability, input-
output efficiency, and rural job creation. Experts
agreed that the new framework offered a more
nuanced and strategic perspective than traditional
financial evaluations. The analysis confirms that a
context-sensitive, multi-dimensional methodology
provides a more accurate and practical assessment of
agrocluster performance. The CFPI serves as a useful
tool for decision-makers to identify strengths, address
weaknesses, and formulate targeted policy and
investment strategies. The positive correlation
between collaborative practices and financial
outcomes further underscores the importance of
institutional arrangements in agrocluster success.
Clustering in EU countries mainly started in 2000 and
includes 5 stages. In 2008, the "European
Memorandum on Clusters" was adopted, and it was
from this year that the analysis of the activities of
clusters and the creation of a database of information
and analytical materials about them began.
Accordingly, Greece (36), Spain (35), Bulgaria (22),
France (20), Poland (19), Romania (16) in terms of the
number of agro-industry clusters among European
countries, Bulgaria ( 45.8 %), Greece (45.0 %), Spain
(23.8 %), Iceland (20.0 %), Hungary (18.6 %),
Netherlands (14.5 %), France (12.1 %) and Poland (11.8
%) were leading . 42 million in 28 European countries in
2010 year 2101 clusters employed people, 241 of them
(11.5%) were agroclusters, in which 4.5 million or
10.8% of the total number of employees worked in the
clusters. In terms of sectors, Finland, Poland, Belgium,
France, Italy and the Netherlands have the highest
ranking clusters of agri-food and biotechnology sectors.
Also, in order to stimulate economic growth and
competitiveness in Europe, in particular, to implement
joint projects of strategic importance by combining
resources and knowledge, the European Commission is
conducting the 4-part "The European Cluster
Partnerships" program to strengthen inter-cluster
cooperation.
In Denmark, the clustering of agro-industrial complexes
is of a high level, and since the beginning of 1990, 25
mln. Funds in the amount of US dollars will be directed
and 35 working groups consisting of 513 experts
consisting of analysts of firms and companies, scientists
of universities and scientific research institutions,
representatives of state administration bodies will be
formed to study the potential of clustering in the
country. 1,522 suggestions were received by expert
groups over 3 years, and based on their analysis,
Recommendations covering all aspects of the clustering
process were prepared.
Scientific research institutions provide the members of
the cluster with innovative ideas and developments, in
which 80% of the costs of scientific research and 10%
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
of the cost of consulting services directed to the
creation of innovative products are covered by the
state.
CONCLUSIONS
The study demonstrates that traditional financial
assessment methods are insufficient for accurately
evaluating the performance of agroclusters due to their
complex, multi-stakeholder, and collaborative nature.
The proposed Composite Financial Performance Index
(CFPI), which integrates both quantitative financial
indicators and qualitative cluster-specific factors,
provides a more holistic and context-sensitive
approach.
The pilot implementation of the methodology revealed
that:
clusters with formalized collaboration mechanisms and
institutional support achieved higher CFPI scores,
regardless of traditional profitability metrics;
public-private partnerships and integrated value chain
management are key to achieving financial
sustainability and resilience in agrocluster systems;
the CFPI aligns strongly with sustainability indicators
such
as
employment
generation,
resource
optimization, and export performance, indicating its
relevance for strategic planning.
This new approach addresses critical gaps in
agrocluster evaluation and supports more informed
decision-making for governments, investors, and
development agencies.
Our offers and recommendations:
adoption of the CFPI model, it is recommended that
policymakers adopt the CFPI-based assessment
framework at the national level to evaluate agrocluster
performance more effectively and consistently:
capacity building and training, cluster managers,
financial
analysts,
and
local
government
representatives should be trained in the application of
the new methodology to ensure proper understanding
and implementation;
integration into agricultural policy, the assessment
results should be used as a basis for directing subsidies,
allocating development funds, and prioritizing cluster
support programs;
trengthening data collection systems, reliable and up-
to-date data on both financial and operational aspects
of agroclusters is essential. Governments should invest
in digital monitoring platforms to support continuous
evaluation,
promotion of collaborative governance, takeholder
coordination mechanisms within agroclusters should
be institutionalized to improve transparency,
accountability, and resource sharing;
further research, continuous refinement of the
methodology based on sectoral specifics and
international best practices is needed to enhance its
robustness and applicability across different regions
and cluster types.
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