The Mechanism of Cluster Restructuring of Farms under the Structural Transformation of Ukraine’s Agricultural Sector

Abstract

The aggravation of structural imbalances in Ukraine’s agricultural sector, driven by the consequences of full-scale war, disruptions in logistics chains, and shifts in global market configurations, necessitates a reassessment of farm development trajectories. Within this context, the cluster model emerges as a strategically oriented mechanism for restructuring, facilitating the integration of farms into unified production, logistics, and innovation platforms. The purpose of this study is to substantiate the mechanism of cluster-based restructuring of farms as a foundation for a new model of agricultural production, grounded in cooperative principles, institutionally sustainable interactions, and innovation-driven development. The methodological framework draws upon the concepts of institutional economics, the territorial cluster development model, and contemporary approaches to managing agricultural systems within an open innovation environment. The research identifies a comprehensive set of external and internal factors influencing transformational changes within the farming sector. Key principles for the formation of next-generation clusters are articulated, including voluntary participation, transparency in the allocation of roles and outcomes, a focus on innovation, and the adoption of digital management tools. A conceptual graphical model of the proposed cluster restructuring mechanism is presented, encompassing the following structural-logical stages: initiation of inter-farm collaboration, identification of a coordinating core, design of production and logistics chains, engagement of financial and institutional partners, and formulation of long-term development strategies. Particular attention is devoted to systemic barriers that hinder the implementation of the cluster approach, notably land fragmentation, low levels of trust among stakeholders, insufficient institutional support, and the inadequate integration of scientific and educational institutions into agro-cluster initiatives. Conclusions. The proposed mechanism for cluster restructuring provides a strategic framework for the innovative modernization of Ukraine’s agricultural sector in the context of post-war recovery. Its application fosters rural economic revitalization, promotes ecosystem-based entrepreneurship, and enhances access for small-scale producers to markets, financial instruments, and technological innovations. Further research should focus on developing performance metrics for agricultural clusters, adapting public-private partnership models to cluster formats, and advancing digital solutions for managing integrated agricultural structures.