- Definition: Geographical concentration of industries.
- Concentration of producers, agro-industries, traders, and other actors.
- Engaged in the same industry, inter-connecting and building value networks.
- Promotion of Agricultural Development:
- Generate agglomeration economies (cost reductions, efficiency gains from proximity).
- Improve access to local and global markets.
- Lead to higher value-added production.
- Raise competitive advantage of farmers and agribusiness firms.
- Increase current productivity and innovative capacity.
- Positive impacts on income enhancement and employment generation.
- Offer great potential for improving the local economy.