Geographical Indications GIs and Sustainable Rural Development: Exploring the Connections DOLPHINS D

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Geographical Indications (GIs) and Sustainable
Rural DevelopmentExploring the Connections
DOLPHINSDevelopment of Origin Labelled
Products Humanity, Innovations and
Sustainability

• Maria Cecilia Mancini University of Parma
• With participation of L.M. Albisu, G. Allaire,
  F. Arfini, D. Barjolle, G. Belletti,
• F. Casabianca, B. Lassaut, A. Marescotti, B.
  Sylvander, E. Thevenod, A. Tregear

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Plan

• Background
• Who participated
• Key themes
• Methodology
• Outputs
• Questions and remarks at the end of the project

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Background

• a. Origin of DOLPHINS Project
• b. Stakes
• c. The context

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a. Origin of DOLPHINS Project

• The GENERAL AIM of the Concerted Action DOLPHINS
  was to ease and strengthen exchanges of the
  scientific results of the research conducted in
  European countries on OLP-related topics. This
  was achieved by means of
• 1. the setting-up of a network of scientists
  involved in research in social sciences in the
  field of OLPs
• 2. the activation of dissemination instruments in
  order to meet the needs of citizens,
  policy-makers, researchers, firms and all the
  other operators involved in OLPs.

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a. Origin of DOLPHINS Project

• SCIENTIFIC OBJECTIVES  
• 1. to better understand the characteristics and
  the evolution of OLPs in the agro-food system,
  also by analysing the links and synergies between
  OLPs and local/global production and marketing
  systems, rural development, and
  consumers/citizens
• 2. to provide criteria for an assessment of
  public policies at various levels concerning
  PDO-PGI and other OLPs
• 3. to provide relevant recommendations to the EU
  in order to better prepare and support the
  negotiation process in the framework of the WTO
  Round regarding the protection and promotion of
  OLPs.

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b. Stakes

• INRA - Institute National Institute for Agronomic
  Research (France)
• UREQUA - Research Unit for Agro-food
  Qualifications
• ETIQ - Unité Économie et Sociologie Rurales
• LRDE - Research Unit on Development of Livestock
  Activities
• CEDRAN - Research Center for agro-food law
• University of Parma (Italy)
• University of Florence (Italy)
• Centro Ricerche produzioni animali (Italy)
• Institut dEconomie Rurale de lEcole
  polytechnique fédérale de Zürich
• University of Munich (Germany)
• Servicio de Investigación Agroalimentaria
  Saragozza Spain
• University of Newcastle (England)
• University of Edinburgh (Scotland)
• Fondation Universitaire Luxembourgeoise (Belgium)
• Departamento de Estudos de Economia e Sociologia
  Agrárias (Portugal)
• University of Helsinky (Finland)

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b. DOLPHINS Project

• 15 research teams
• 9 countries France, Italy, Switzerland, Spain,
  United Kingdom, Germany, Portugal, Belgium,
  Finland
• 7 OLP related topics
• (i) Technical and regulatory aspects, (ii) chains
  and markets, (iii) rural development, (iv)
  consumers and citizens, (v) characteristics of
  distribution chains, (vi) public policies, (vii)
  syntheses and recommendations
• Concluded on February 2004

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web site www.origin-food.org

• database
• Publications 727 references
• Institutions 126 references
• Research in process 55 projects
• 30000 visitors yearly
• (1500 / month during autumn 04)

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c. The context

• Trade Liberalisation (Negotiations WTO under
  TRIPS agreement)
• Cairns Group opposes to  geographic protection
• Developing countries want to benefit from
  liberalisation (GI doesnt correspond to any
  material quality!).
• GI mislead consumer!
• Europe wants to defend and to promote its
  agricultural model (rural and regional
  development, multifunctionality)

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c. The Liberal Thinking

•  All strategies are valuable once they do not
  mislead consumers
• Basic principle of Marketing
•  me too   !!
• Imitator
• I am able to make the same product as you,
  better than you, at a lower cost. If the name is
  not protected by a Trademark, I use it!
• On the other hand
• "me too" (imitation) leads to usurpation of
  intellectual property creating problems to rural
  development

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FINAL RESULT A MEXICAN EXAMPLE
Mexican Ham?
Spanish Ham?
Italian Ham?
Is this consumer protection?????
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c. Examples of Usurpations

• Brazilian Champagne
• Danish or French Feta
• American Chablis
• Australian "Parmigiano
• Canadian Parma Ham
• Etc..

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c. discussion

• Liberal Jurists
•  Majority of cases, consumers do not know the
  origin of the product ? Then, they are not
  mislead 
• Jim Chen there is not prejudice then!

• Jurists in favour to protection replies
•  It is a  premium to more dishonest producers
  selling to dim-witted consumers

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c. Legal Definitions of Origin (2)

• Indication of Origin Indication refers to a
  country or a place of origin of a product
  (Paris, 1883)
• Geographic Indication Indication used to
  identify one product as being originated from one
  territory of one member, or from one region or
  locality of this territory, in the case where
  one quality, reputation or other characteristic
  determined by this product can be attributed
  essentially to this geographical origin  (TRIPS
  -Adpic, 1994)
• Designation of Origin geographic name of a
  country, region or locality, which can be used to
  designate a product from which it is originated
  and then the quality or characteristics are due
  exclusively or essentially to the geographical
  environment, including the natural and human
  factors (Lisbon, 1958)

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c. Legal Definitions of Origin (1)
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c. examples

• UK Stilton, Farmhouse Cheddar, Scotch beef
• Germany Beer Bavaroise, Asparagus
• Italy Parmigiano Reggiano, Parma Ham, Olive Oil
  of Tuscany
• France Roquefort, Comté
• Spain Ham of Teruel, Serrano Ham
• Portugal Tras os montes Olive Oil

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c. OLP ( Dolphins definition)

•  Local Products, based on strong territorial
  identity and a reputation, and / or typical
  products based on specific modes of production
  and whose quality, reputation or any other
  characteristics are attributable essentially to
  their geographic origin 
• These products are not necessary protected.

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Key themes of the research for OLPs

• Legal protection of producers/local systems
  /chains from usurpations and imitations (WP 1)
• OLPs chains organisation and collective action
  (WP 2)
• Contribution to rural and regional development
  (WP 3)
• Link between OLP and consumers and citizens (WP 4)

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• The methodology is as below
• Literature collection and knwoledge
  systematization.
• SWOT analysis on the basis of the current
  situation of OLPs.
• Elaboration of typologies of OLPs based on
  archetypes.
• Development of four policy scenarios feasible at
  EU level.
• Description of the impact of the different
  scenarios on the OLP archetypes.

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Main Results of Dolphins
2. Public Policies
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Factors of Diversity of the OLP
1

• Size (volumes, delimitation, number of producers,
  ..)
• Categories of products and degree of
  transformation
• Specificity / typicality
• Dimension of the market (local, regional,
  national, export)
• Market Organisation
• Level of development (established, new)
• Types of consumers
• Type of protection (Collective brands, PDO, PGI)

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Dolphins Results (WP 1 to 6)
1

• WP1 Technical and juridical diversity
• WP2 The value exists sometimes, created or not
  by coordination of chains
• WP3 The resource Origin do not necessary set
  the conditions of rural development
• WP4 Variability of willingness to pay, of
  notorieties of OLPs. Notions of proximity
• WP5 Diversity of chain structures
• WP6 There is a policy for protection not for
  development

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SWOT ANALYSIS threats and opportunities
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SWOT ANALYSIS threats and opportunities
2
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2
SWOT ANALYSIS strenghts and weaknesses
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Two essential variables to evaluate
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• A. The logic of the system (or governance)
  territorial, sectorial or corporate governance.
• B. The dynamic of the system developing and
  developed systems.

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A The logic of the systems (or governance)
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• Territorial Governance
• Various locals enterprises and institutions
  negotiates among themselves in one territorial
  base and formal or informal contracts. High
  degree of organisation at spatial level local
  institutions and inter-sectorials relations
• Examples Comté (F), Parmigiano Reggiano (I),
  Tuscany Olive Oil (I),

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3

• Sectorial Governance
• Various enterprises and institutions negotiate
  among themselves with formal and informal
  contracts in the same sector of activity. High
  degree of information of the chain organisation.
  Systems established firmly in the territory (by
  production conditions) but fragile with
  institutions and local economies
• Examples Roquefort (F), Parma Ham (I), Jersey
  potatoes (UK),

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3

• Corporate Governance
• including enterprises which do not fundamentally
  adhere to OLP ideology and culture
• .
• Examples Bavarian beer (D), Zampone e Cotechino
  di Modena (I), Beacon fell Lanchashire Cheese
  (UK),

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Each real system is a combination
3

Corporate
Real System
Sectorial
Territorial

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The dynamic of the systems
3

• It reflects the level of development of the
  project.
• The stakes are either to create and develop the
  system,or either to manage, improve and to
  protect against from external threats.

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Logic
Dynamic
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3
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4

• CAP reform won (1ST SCENARIO)
• The general objective of the MTR was to provide a
  clear planning framework to European farmers for
  their business decisions, enhancing their
  entrepreneurial function to produce what the
  consumers and the market wanted, and optimising
  costs. Farmers were to gain reward for the
  service they provided to society instead of
  depending on public handouts. Thereby, the reform
  sought to substantially stabilise farmers
  incomes and open at the same time new paths to
  diversification, including a stronger development
  of non-food agricultural production such as
  renewable energy resources.

The impact of Scenario 1 on OLPs in general was
dependent upon the sector in which the OLPs
operated, the degree to which OLP supply chains
were established, and the extent to which OLPs
were reliant upon the raw materials of producers
strongly affected by the new subsidy
arrangements.
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Liberalism without rules won (2ND SCENARIO) The
WTO negotiations (Millennium round) led to a
weaker political position of the European Union.
The Indications of Origin, protected in principle
in the framework of the TRIPS agreement, are not
well protected, due to the many exceptions and
the strength of the private trademarks.
OLPs were not favoured in this scenario. Only the
largest supply chains protected by the
registration of their trademarks could survive.
Smaller OLPs which had a good recognition from
consumers had their trademarks registered and
could survive at the country level. Those who
were able to exploit the internet opportunities
and other commercial innovations could also keep
their position on the market.
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Cork Conference won (3RD SCENARIO) CAP policy
takes into account the multifunctionality of
agriculture, by supporting the diverse roles the
agriculture plays in the different EU rural
areas. The reform of EU agricultural policy
includes well-targeted policy measures, which
will enable the agricultural sector to contribute
to the viability of rural areas, and address
environmental issues.
In this scenario the role of OLPs is very
important. OLPs are recognized as a fundamental
link between specific local resources and
markets, and hence OLPs selling, geographical
indications, direct marketing initiatives etc.
are seen as a way for promoting traditional local
farming and processing systems, and solving the
market failure in remunerating positive
externalities linked to the OLPs systems.
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Regionalism won (4TH SCENARIO) WTO negotiations
succeed in an acceleration of trade
liberalisation the market support through the
Common Market Organisations have to disappear.
Direct market support is no longer allowed. .
Impact on OLPs in general The regional
competencies are a good way to encourage sectoral
or corporate initiatives to evolve in a more
territorial logic. But the risks are high
when too many regions are not giving sufficient
financial support and political impulse, the
territorial developing or developed initiatives
can be forced to evolve to sectoral (and after
severe restructuration of the industry sometimes
even corporate) logic. The territorial dimension
can be totally loose The opportunism prevalent
in the corporate / sectoral logics will be
prejudicial for product quality.
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OLPs and the four scenarios
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Recommendations for new research areas
WP1 - OLP products definition, characteristics,
legal protection Interdisciplinary research. A
large knowledge gap exists on the link between
the natural characteristics of the production
area and the intrinsic quality of the product.
Such research is important to collect arguments
in defence of the specific quality of OLPs with
respect to generic standard food products,
arguments which are of particular importance in
the WTO negotiations. Competence /know-how
There is a lack of research on traditional
rural/local knowledge and know-how. Under which
conditions OLP are reproducible?
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Recommendations for new research areas
WP2 Link between OLPs and production-marketing
systems Marketing of OLPs As often, marketing
is one of the weakest links in OLP supply chains,
more research is needed on the relationship
between distribution channels and OLP producers.
(short and new channel, e-commerce?) Co-operation
/ competition and supply chain coordination
Co-operatives are deeply involved in the
production, processing and marketing of typical
products. Is it a better organisational model?
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Recommendations for new research areas
WP 3 Links between OLP and rural development
1. Evaluation of effects of typical products on
rural development At present there are few
studies which attempt to quantify and to compare
the effects of typical production at different
territorial levels (Region, State, EU). Can be
interesting to define the theoretical tools
(indicators, methodology) for assessing the
scenario of the potential resources (quality
products, traditional products) existing in the
different territories and in the different
countries at different territorial levels?
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Recommendations for new research areas

• WP 4 Links between consumers and citizens
• In terms of key areas for future research, the
  following are identified
• Estimates of sizes and profiles of markets for
  different OLPs
• Understanding/insight into OLP usage in the
  context of wider (food) habits
• Understanding of OLP usage as embedded within
  socio-cultural context
• Understanding what consumers perceive as an OLP
• Understanding of how different OLPs are perceived
  and valued by consumers
• Estimates of willingness to pay for different
  OLPs
• Analysis of the role of official marks and
  designations (e.g. PDOs/PGIs) in consumer
  perceptions of OLPs
• Investigation of future evolution/usage of OLPs

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Conclusions

• The legitimacy of the OLPs contribution to
  social goals has to be based on strong evidence
  (renegotiations of the TRIPS agreement)
• Consumer attitudes and behaviour have to be
  analysed much more intensively than today, so
  that specific marketing means for OLPs (product
  attributes, promotion, brands, distribution
  channels), can be developed.
• Strong OLP supply chains must be able to market
  efficiently specific products on local markets as
  well as on remote markets. This means that modern
  management methods must be implemented on both an
  individual and a collective basis, and
  coordination and cooperation will be strongly
  encouraged in the framework of consortiums whose
  legitimacy must be reaffirmed.
• Finally, public policies must be clearly oriented
  towards OLP development (and not only
  protection).

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Thanks for your attention! - arrivederci!