Evaluation of cluster development level of agriculture products processing industrial park

Abstract: Industrial clustering, as a marked feature and a major pattern in the development of China's agro-processing industry, represents the trend of development. In order to study and summarize the successful experiences and investigate the status of cluster development of agro-processing industrial parks in different provinces, the author designed a comprehensive evaluation model, taking into account of diverse factors, including regional industrial clustering index, share of companies settled in industrial park, share of main business income, as well as investment in science and technology in the industrial park. Data on 8 indicators was collected in provinces : the evaluation score on the proportion of agro-processing companies in the industrial park among all companies of its kind in the province, the evaluation score on the proportion of large-scale agro-processing companies in the industrial park in all companies of its kind in the province, the evaluation score on the proportion of leading agro-processing companies in the industrial park in all companies of its kind in the province, the evaluation score on the proportion of fixed assets value of companies in the industrial park in the industrial total in the province, the proportion of main business income of companies in the industrial park in the industrial total in the province, the evaluation score on the proportion of after-tax profits of companies in the industrial park in the industrial total in the province, the evaluation score on the proportion of employment in the industrial park in the industrial total in the province, and the evaluation score on the proportion of investment in science and technology in the industrial park in the industrial total in the province. The level of clustering in various provinces is ranked according to statistics (from high to low): Heilongjiang, Jilin, Gansu, Shanxi, Inner Mongolia, Beijing, Fujian, Hebei, Jiangsu and Hunan. The study examined effects and level of clustering for agro-processing industrial parks in China. It finds that regions with high level of clustering are more privileged in terms of industrial resources or labor resources, more committed to investing in science, technology and technical innovation, and more capable in management and resource integration. Besides, they can properly extend the industrial chain to attract large-scale or leading companies, create favorable conditions for production and financing, and offer convenient services in transportation, technology and information. With reduced transaction cost and better productivity, the companies in the industrial parks can increase main business income and profits. The study notes that development of clustering in industrial parks will need to be put into the context of national fundamentals, tap the potential of local advantages, and be aligned with development of agro-processing industry. Efforts are needed to develop master plan for agro-processing parks, set up and enforce industrial standard, squarely implement preferential policies on taxation, water and power, provide more support in financing, commit to technology development and technical innovation, cultivate brand for leading companies, and set up role models to showcase good practices, in order to facilitate cluster-based development. Government shall create platform for services and regulation, focusing on early warning and surveillance. Several policy recommendations are put forward in the study as follows: advocate differentiated pattern of development (agricultural science and technology, agro-tourism, experience and sightseeing, etc), explore multiple functions of industrial parks, create new sources of employment and income for farmers, promote integration of the primary, secondary and tertiary industries, and boost innovative, balanced, green, open and shared development of the industry. The study provides reference for peer agencies, public organizations, companies and relevant researchers and analysts.