The Research Of The Development Of Agricultural Products Processing Industry Cluster In Jiangsu Province

In the context of building a new socialist countryside in China, agriculture is even more essential as the first industry. However “three dimensional rural issues” are highlighted as a bottleneck restricting China’s economic development. Therefore, the agricultural products processing industry connects agriculture and industry as a bridge and it also becomes a new way to solve the problems about agriculture，rural areas and peasantry. Competitive industries tend to produce a conglomeration effect and develop clusters with regional characteristics. Thus the industrial clusters have become a global common economic phenomenon. Agricultural products processing industrial clusters show their outstanding competitive advantages. It becomes a new trend which adapts to agricultural industry’s development. Conglomeration effect of agricultural products processing industry has become more evident in some regions including Jiangsu Province where has developed many agricultural products processing bases and clusters with distinct features. These all promote regional development in rural areas and alleviate “three dimensional rural issues” effectively.The paper studies the development of Jiangsu’s agricultural products processing industry cluster on the base of relative theories of domestic and foreign. Firstly, paper describes the background, the purpose and the significance of the research, and then this study’s contents and methods are proposed. The paper also introduces related theories and the research status quo all over the world of agricultural products processing industry clusters. Secondly, the status of agricultural products processing industry and the problems appear in the development of the cluster in Jiangsu are in a comprehensive thought. It is found that agricultural products processing industrial cluster has formed in Jiangsu Province and its leading enterprises, brand industries, agricultural products processing bases and agricultural products processing focus areas are developing rapidly. Agricultural products processing industrial cluster of Jiangsu Province has a high degree of concentration and in recent years the cluster has made great achievements in the country. However, there are still some problems, such as low rate of deep processing, incomplete industry structure and industry chain, under-developed technology and equipment and enterprises’ low development level. All of these problems hinder the sustainable development of the cluster. Furthermore, the paper analyzes the cluster’s influence on rural development in Jiangsu Province based on relative data of1995-2009and it is found that the development of the cluster can promote rural construction, stimulate rural economic growth, increase peasants’ income which effectively alleviates the “three dimensional rural issues”. The results further illustrate the necessity of the development of agricultural products processing industrial cluster in Jiangsu Province. To analyze the factors which influence cluster’s development so that the impact factors can be better controlled to promote the development of the cluster, the paper conducted an analysis of total factor productivity (TFP) of the cluster. The results show that: agricultural products processing industry in Jiangsu still belongs to labor-intensive industry the industry is currently in the stage of increasing returns, thus expanding the production scale to increase output can achieve economies of scale, and it is significant to enhance the cluster’s scale the total factor productivity contributes most to agricultural products processing industrial cluster’s economic growth rate in Jiangsu Province and high-tech and the economies of scale promote the development of cluster, so it is a kind of deep growth. Finally, on the base of the results of the above analysis, policies recommendations which are in order to speed up the development of the cluster in Jiangsu are put forward: to improve the innovation ability of enterprises and the coordination ability of the cluster to establish the relationship of stable interest between farmers and the cluster to develop group strategy and brand strategy to promote the scale of the cluster to develop new labor-intensive agricultural products processing industrial cluster to give policy support to agricultural products processing industrial cluster.