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GI: A MARKETING TOOL FOR ECONOMIC AND RURAL
DEVELOPMENT
A French experienceCyril Portalez
Agricultural counsellor, French Embassy in the UK
An intellectual property right recognized by WTO TRIPS agreement
The GI is a specific, distinctive intellectual property right.
It is an intellectual property right recognised in 150 countries
It is a collective right of use
Protect the producer from counterfeiting
Protect the consumer from fraud
16 b€ = 8% agriculture and food manufactoring turnover (80% from wines and spirits)
6 b€ for export = 27% food export18% cheese matured in France (volume)48 PDO - 28 000 producers 48 PDO - 28 000 producers
57% winery acreage 44% production (volume)
80 PGI - 25 000 producers80 PGI - 25 000 producers
39 PDO – 12 000 producers 39 PDO – 12 000 producers
Milk products PDO (48)
0
5
10
15
20
25
30
Cow milk cheese
Goat cheese ewe milk cheese butter Cream
29
13
3 2 1
Nu
mb
er o
f PD
O
Other PDO (39)
0
2
4
6
8
10
12
14
Olives and olive oils
Fruits, cereals,
vegetables
Meat Honey Sea food products
Condiment Hay Essential oil
13 13
7
21 1 1 1N
um
ber
of P
DO
PGI (80)
0
5
10
15
20
25
30
35
40
45
50
Meat Meat products
Fruits, cereals,
vegetables
Cheese Cream Sea food products
Bakery products
Cider Honey Pasta
48
3
15
41 2 2 2 2 1
Nu
mb
er o
f P
GI
Meat PGI
Examples of the positive impacts of GIs
PDO Comté cheese
Produced in Franche-Comté Adapted to local conditions (mountain area) Since the Middle Ages AOC since 1958
Specifications of the Comté cheese
BREEDING Species = Montbéliarde 1 acre of grassland per cow
MATURING Minimum 4 months Storage on planks of epicea
PROCESS Transformation within 24 hours Limited area of milk collection
Comté vs Emmental : close origins but opposite development strategies
Origins• Geographical area
COMTE
P.D.O. strategy
Heritage protection and local development
EMMENTAL
Industrial strategy
Generic product and production delocalization
20 000
25 000
30 000
35 000
40 000
45 000
50 000
55 000
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
Comté production in Franche-Comté : + 3%/year for 10 years
Local Emmental production has dropped
Comté
Emmental
Supply control
Improvement of quality
Advertisement cover
Development of individual packaging
Comté up-market strategy has an impact at every stage of the production value, with higher prices than those observed in the Emmental sector
4
4,5
5
5,5
6
1990 1992 1994 1996 1998 2000 2002
Comté
Emmental7 %
24 %
Gross price - maturing (€/kg)
• Comté is in the up-market segment
• Emmental is considered more as a cooking ingredient than a cheese (55% grated cheese)
20,00
25,00
30,00
35,00
40,00
1980 1985 1990 1995 2000 2005
9 %
14 %
Comté milk
Basic milk
Milk price (€/hl)
5
6
7
8
9
10
1990 1992 1994 1996 1998 2000 2002 2004
Comté
Emmental
46 %
Consumer price (€/kg)
20 %
34 471 29 075
62 49950 807
5 000
178 047
29 903
48 631
1 292
1 402
Comté production has remained anchored in Franche-Comté as an up-market product
Emmental production was transferred to the west, as a basic product
FrancheComté
Ain
96
97
Total 31 195 50 033
Comté production - France (tons) - source : DRAF
1971 (%) 2002 (%)
Total 101 970 257 929
Emmental production - France (tons) - source : DRAF
Franche Comté
Other historical areas
West
1971 (%) 2002 (%)
34
61
5
11
20
69
COMTE EMMENTAL
10 000
15 000
20 000
25 000
30 000
1988 1990 1992 1994 1996 1998 2000 2002
The economic profitability of milk farms in the Comté area has regularly increased
Comté area
Non-PDO area
32 %
Evolution of results before tax, per farm specialized in cows milk - K€
Improved profitability
Lower volatility
1,29
0,98
0,6
0,13
0,6
The number of full-time equivalent jobs per litre is 5 times higher in the Comté sector (not including milk producers)
Collect and primary processing
Maturing and selling
Administration
Packaging
Number of full time equivalent jobs per 1 000 000 liters collected
Source : fédération des coopératives laitières du Doubs, DPEI estimates
TOTAL 3,0 0,6
Comté Emmental 3,0 FTE vs 0,6 in the Emmental sector 0,5 indirect FTE per Ml in the Comté sector (promotion, consulting…)
Total jobs in the Comté business
Milk producers
3200
Direct jobs 1520
Indirect jobs 250
TOTAL 4 970
• The PDO requirements impose retaining a large number of cheese-making units • Product valorisation makes small units profitable • Small size of cheese units guarantees employment
AOC area
Cheese units in Franche-Comté
GIs boost production: Morbier cheese example
Source : ODG du Morbier, INAO
0
5
10
15
20
25
30
35
40
45
0
1000
2000
3000
4000
5000
6000
7000
8000
2000 2001 2002 2003 2004 2005 2006ton
ne
s
Production en tonnes
Fabricants
AOC, déc. 2000
Chili peppers from Espelette
(Piments d’Espelette)
GIs boost production
1999/20002000/2001
2001/20022002/2003
2003/20042004/2005
2005/2006
Surface plantée (ha)
Nombre de producteurs
0
10
20
30
40
50
60
70
80
90
Bayonne Ham
Since 1998 (recognition of the PGI):
• 7 new industrial machines (slaughtering-cutting, chopping)
• Creation of 10 salting units + 2 new collective workshops
• Creation of an interprofessional hub : multi-function laboratory, experimental manufacturing centre, museum : 15 000 visitors/year
• Relocation of production• €100 million investments • 1000 new jobs •From 700.000 to 1,3 M hams/year
Sou
rce:
Con
sort
ium
du
jam
bon
de B
ayon
ne
Collective and individual promotional policies
Actions by the Jambon de Bayonne IGP Consortium
Ets. LAHOURATATE
Produits gastronomiques du Sud-Ouest
Viandes - Charcuteries - Salaisons des
Pyrénées pour
Particuliers et Professionnels
Fabricant de Jambon de Bayonne
Certifié
Salaisonniers depuis 1850
Communication made by one specific company
GIs create added value for the local food chain
and for the local community
GIs add value based on local assets
Link to the terroir (area + traditional know-how)
+
Strong identity/specificity
+
Natural or voluntary limits of production
Unique product
Difficult to substitute
Adjustment by prices
=
ADDED VALUE
Associated products
SWEET ONION (PDO) Transformed products Sweet onion confit onion chutney
= > Associated products
REINETTE APPLE Juice Apple compote
CHESNUT Dry chestnut Chesnut flour Chesnut Jam
Social interaction
Preservation of open spaces, transition between fields and forests, traditional in Jura cattle rearing areas.
Positive Impact on landscape
The Jura mountains, in the AOC area:
open space
Landscape of Hautes-Vosges, outside the AOC:
closing area
Landscape of Haute-Saône, outside the AOC:
closed area
« Oignon doux des Cévennes »: a key
production for traditional landscapes in the
« Cévennes valleys»
Positive Impact on landscape
60
100
140
180
220
260
1989 1994 199940
60
80
100
120
140
160
1989 1994 1999
POSITIVE IMPACT ON THE ENVIRONMENT
Comté cheese example:The rules governing production imply a lesser intensification of rearing and a better protection of the environment
Non-PDO area
PDO area
Fertilizer utilization per ha – base 100 in 1990
Non-PDO area
PDO area
herbicide utilization per ha – base 100 in 1990
• The use of fertilizers and herbicides increased 2,5 times less rapidly in the PDO area.• The number of animals is 0,95/ha in the Comté area versus 1,11 in other areas.• 30 to 65 botanic species have been identified per field in the PDO area vs only 10 species in artificial grasslands.
GI collective approach
Environment protectionDevelops local activities
Positive impact on the food chain
Consumer demand
Creates value at farm level
Thank you for your attention
For more information http://www.inao.gouv.fr/
