Geographical Indications – a European treasure worth €75 billion

foood markets

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


Agri-food and drink products whose names are protected by the European Union as “Geographical Indications” (GIs) represent a sales value of €74.76 billion, according to a study published today by the European Commission. Over one fifth of this amount results from exports outside the European Union. The study found that the sales value of a product with a protected name is on average double that for similar products without a certification.

Commissioner for Agriculture, Janusz Wojciechowski, said: “European Geographical Indications reflect the wealth and diversity of products that our agricultural sector has to offer. Producers’ benefits are clear. They can sell products at a higher value, to consumers looking for authentic regional products. GIs are a key aspect of our trade agreements. By protecting products across the globe, we prevent fraudulent use of product names and we preserve the good reputation of European agri-food and drink products. Geographical Indications protect local value at global level.”

European food is famous for being safe, nutritious and of high quality. Traditional production methods contribute to the EU objective to also become the global standard for sustainability in food production.

EU quality schemes aim at protecting the names of specific products to promote their unique characteristics, linked to their geographical origin as well as know-how embedded in the region. These product names are part of the EU system of intellectual property rights, legally protecting them against imitation and misuse. Agri-food products and wines are protected as Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI), and spirit drinks as Geographical Indications (GI). European Union also protects Traditional Specialities Guaranteed (TSG), highlighting the traditional aspects of a product without being linked to a specific geographical area. The sales value of agricultural products and foodstuffs labelled as TSG are worth €2.3 billion.

The study was based on all 3,207 product names protected across the 28 EU Member States at the end of 2017 (by the end of March 2020, the total number of protected names increased to 3,322). It concludes that the sales value of a product with a protected name is on average double than that for similar products without a certification.

According to the study, there is a clear economic benefit for producers in terms of marketing and increase of sales thanks to high quality and reputation of these products, and willingness of consumers to pay to get the authentic product.

The main findings of the study are:

  • Significant sales value: Geographical indications and traditional specialities guaranteed all together accounted for an estimated sales value of €77.15 billion in 2017, 7% of the total sales value of the European food and drink sector estimated at €1,101 billion in 2017. Wines represented more than half of this value (€39.4 billion), agricultural products and foodstuffs 35% (€27.34 billion), and spirit drinks 13% (€10.35 billion). Out of the 3,207 product names that were registered in 2017 (both GI and TSG), 49% were wines, 43% agri-food products and 8% spirits drinks.
  • Higher sales premium for protected products: the sales value of the products covered by the study was on average double than the sales value for similar products without a certification. The value premium rate stood at 2.85 for wines, 2.52 for spirits and 1.5 for agricultural products and foodstuffs.
  • A truly European policy: Each EU country produces products whose names are protected at EU level and serve as flagships for the traditional culinary heritage of regions and as economic drivers for the national agri-food sector.
  • Exports of geographical indications: geographical indications represent 15.5% of the total EU agri-food exports. Wines remained the most important product both in terms of total sales value (51%) and extra-EU trade (50%). The U.S., China and Singapore are the first destinations for EU GI products, accounting for half of the export value of GI products.

To ensure that the EU quality policy continues to deliver at its best, an online public consultation was launched from 4 November 2019 to 3 February 2020 to gather feedback on the policy from stakeholders. Among the key findings, a majority of respondents agreed that EU quality schemes benefit producers and consumers. The ‘factual summary’ report gives a detailed overview of the feedback received from the public consultation.

Background

Protected Designation of Origin (PDO), Protected Geographical Indication (PGI), and Geographical Indications (GI) for spirit drinks guarantee to consumers that the concerned produce is genuinely made in its specific region of origin, using know-how  and  techniques embedded in the region. The main difference between the PDO and the PGI is related to how much of the raw materials come from the area or which steps of the production process haves to take place in the specific region. Famous geographical indications include for example Bayerisches Bier, Champagne, Irish Whiskey, Kalamata olives, Parmigiano Reggiano, Polish Vodka, Queso Manchego, Roquefort.

Traditional speciality guaranteed (TSG), on the other hand, highlights the traditional aspects such as traditional production method or traditional composition, without being linked to a specific geographical area. Examples of famous TSG are Bacalhau de Cura Tradicional Portuguesa, Amatriciana tradizionale, Hollandse maatjesharing,andKriek.

The EU has concluded more than 30 international agreements, which allow the recognition of many EU Geographical Indications outside the EU and the recognition of non-EU Geographical Indications in the EU. Geographical Indications play an increasingly important role in trade negotiations between the EU and other countries. The Commission also dedicates around €50 million every year to promote quality products in the EU and around the world.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Commission Vice-President Rehn exaggerates Eurozone’s growth prospects

Industrial policy: recommendations to support Europe’s leadership in six strategic business areas

Number of MEPs to be reduced after EU elections in 2019

5 ways to break down the barriers for women to access leadership roles

A Sting Exclusive: “On the road to Japan-EU Economic Partnership Agreement”, by Ambassador Katakami of the Japanese Mission to the European Union

AI can help us unlock the world’s most complex operating system – the human body

5 amazing schools that will make you wish you were young again

Healthcare guidance apps to professional’s continued education?

The world needs a circular economy. Help us make it happen

Victims of terrorism remembered

Banks cannot die but can be fined

The next generation is key for a European renaissance

UN appeals for international support as flood waters rise in wake of second Mozambique cyclone

UN expert calls for international investigation into ‘evident murder’ of Jamal Khashoggi

‘The clock is ticking’ on meeting the Sustainable Development Goals, says UN deputy chief

A Monday to watch the final act of a Greek tragedy; will there be catharsis or more fear?

Syrian Constitutional Committee a ‘sign of hope’: UN envoy tells Security Council

Coronavirus: Commission stands ready to continue supporting EU’s agri-food sector

Norway is returning Easter Island artefacts to Chile (Will Britain ever return the marbles to Greece?)

MWC 2016 Live: Mobile ad industry still waiting for “revolution”

Brexit casts a shadow over the LSE – Deutsche Börse merger: a tracer of how or if brexit is to be implemented

MWC 2016 Live: Roshan CEO opens up on Afghanistan challenges

EU Commission announces Safe Harbour 2.0 and a wider Data protection reform

Commission sets moderate greenhouse gas reduction targets for 2030

From Russia with love: Brussels and Moscow close to an agreement on Ukraine’s gas supplies

Sudan Prime Minister survives attempted assassination

Monday’s Daily Brief: WFP mulls ‘last resort’ Yemen aid suspension, top peacekeeping awardee announced, abuzz over Bee Day, Ebola threat ‘very high’

EU-U.S. Privacy Shield: Second review shows improvements but a permanent Ombudsperson should be nominated by 28 February 2019

Why helping cross-border commuters is key to fighting COVID-19

Future EU-UK Partnership: European Commission takes first step to launch negotiations with the United Kingdom

Emotional control and introspectivity in times of pandemic

Why economic growth depends on closing the interview gap

The Khashoggi affair: A global complot staged behind closed doors

THE ROAD TO GANESHA

EU-Turkey relations: EU considers imposing sanctions while Turkey keeps violating Cyprus’ sovereignty

What if Trump wins the November election and Renzi loses the December referendum?

Nicaragua crisis: One year in, more than 60,000 have fled, seeking refuge

Trump after marginalizing G20 attacks Europe and China where it hurts, brandishes currency war

EU-Ukraine Summit: moving forward together in solidarity

MEPs to prioritise environment and climate action in next long-term budget

In Libya, Guterres ‘deeply concerned’ by risk of fresh military confrontation, urges restraint

UN forum to bring ‘big space data’ benefits to disaster response in Africa

The 5 lessons from New York Climate Week to help us combat deforestation

More than four in 10 women, live in fear of refusing partner’s sexual demands, new UN global study finds

Poverty and social exclusion skyrocket with austerity

3 ways to use digital identity systems in global supply chains

EU leads the torn away South Sudan to a new bloody civil war

Gender parity can boost economic growth. Here’s how

Technology can help solve the climate crisis – but it will need our help

An open letter from business to world leaders: “Be ambitious, and together we can address climate change”

Cyclone Idai: UNICEF warns of ‘race against time’ to protect children, prevent spread of disease in flood-ravaged Mozambique

EU-US trade war? EU calls for logic while Trump’s administration is a loose cannon in a dangerous lose-lose situation for global prosperity

This AI outperformed 20 corporate lawyers at legal work

We spend half our time at work in meetings – and that’s not necessarily a bad thing

Is history a new NATO weapons against Russia?

How three US cities are using data to end homelessness

2013, a Political Odyssey: What future for Italy?

The jobs forecast is unsettled. It’s time for a reskilling revolution

The European Parliament fails to really restrict the rating agencies

UPDATED: Thousands flee fighting around Libyan capital as Guterres condemns escalation, urges ‘immediate halt’ to all military operations

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s