- Enhancing Productivity:
- Agglomeration economies lead to cost reductions and efficiency gains.
- Co-opetition (balance between competition and cooperation) within the cluster.
- Access to specialized skills and knowledge.
- Shared infrastructure and services.
- Improving Market Access:
- Stronger value networks (horizontal among producers, vertical among suppliers/processors).
- Facilitates marketing of produce.
- Connects farmers to processors and retailers.
- Example: Mega Food Parks connecting farmers, suppliers, food-processors, retail chains.