GI: A MARKETING TOOL FOR ECONOMIC AND RURAL DEVELOPMENT

1. GI: A MARKETING TOOL FOR ECONOMIC AND RURAL DEVELOPMENT A French experience Cyril Portalez Cyril.portalez@dgtpe.fr Agricultural counsellor, French Embassy in the UK

2. 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

3. 16 b€ = 8% agriculture and food manufactoring turnover (80% from wines and spirits) • 6 b€ for export = 27% food export 18% cheesematured in France (volume) 48 PDO - 28 000 producers 39 PDO – 12 000 producers 80 PGI - 25 000 producers 57% winery acreage 44% production (volume)

4. Milk products PDO (48)

5. Other PDO (39)

6. PGI (80)

7. PGI poultry

8. Meat PGI

9. Examples of the positive impacts of GIs

10. PDO Comté cheese Produced in Franche-Comté Adapted to local conditions (mountain area) Since the Middle Ages AOC since 1958

11. 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

12. 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

13. Comté production in Franche-Comté : + 3%/year for 10 years Local Emmental production has dropped • Supply control • Improvement of quality • Advertisement cover • Development of individual packaging Comté Emmental

14. Comté up-market strategy has an impact at every stage of the production value, with higher prices than those observed in the Emmental sector Gross price - maturing (€/kg) Milk price (€/hl) Comté milk Comté 14 % 24 % Basic milk 7 % Emmental 9 % Consumer price (€/kg) • Comté is in the up-market segment • Emmental is considered more as a cooking ingredient than a cheese (55% grated cheese) Comté 46 % 20 % Emmental

15. Total 101 970 257 929 Total 31 195 50 033 Comté production has remained anchored in Franche-Comté as an up-market product Emmental production was transferred to the west, as a basic product COMTE EMMENTAL 1971 (%) 2002 (%) 1971 (%) 2002 (%) 69 Ain West 5 97 Other historical areas 61 96 20 Franche Comté Franche Comté 34 11 Comté production - France (tons) - source : DRAF Emmental production - France (tons) - source : DRAF

16. Evolution of results before tax, per farm specialized in cows milk - K€ The economic profitability of milk farms in the Comté area has regularly increased Comté area 32 % • Improved profitability • Lower volatility Non-PDO area

17. Milk producers 3200 The number of full-time equivalent jobs per litre is 5 times higher in the Comté sector (not including milk producers) Direct jobs 1520 Indirect jobs 250 TOTAL 4 970 • 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 Comté Emmental Administration Packaging Maturing and selling Collect and primary processing TOTAL 3,00,6 Number of full time equivalent jobs per 1 000 000 liters collected Source : fédération des coopératives laitières du Doubs, DPEI estimates

18. 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 Cheese units in Franche-Comté AOC area

19. GIs boost production: Morbier cheese example AOC, déc. 2000 Source : ODG du Morbier, INAO

20. GIs boost production Chili peppers from Espelette (Piments d’Espelette)

21. 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 Source:Consortium du jambon de Bayonne

22. Collective and individual promotional policies Actions by the Jambon de Bayonne IGP Consortium Communication made by one specific company

23. GIs create added value for the local food chain and for the local community

24. 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

25. 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

26. Social interaction

27. Positive Impact on landscape Preservation of open spaces, transition between fields and forests, traditional in Jura cattle rearing areas. 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

28. Positive Impact on landscape « Oignon doux des Cévennes »: a key production for traditional landscapes in the « Cévennes  valleys»

29. PO SITIVE 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 Non-PDO area PDO area PDO area Fertilizer utilization per ha – base 100 in 1990 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.

30. Consumer demand GI collective approach Creates value at farm level Positive impact on the food chain Develops local activities Environment protection

31. Thank you for your attention • For more information • http://www.inao.gouv.fr/