GI: A MARKETING TOOL FOR ECONOMIC AND RURAL DEVELOPMENT A French experience Cyril 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 export 18% cheese matured in France (volume) 48 PDO producers 57% winery acreage 44% production (volume) 80 PGI producers 39 PDO – producers

Milk products PDO (48)

Other PDO (39)

PGI (80)

PGI poultry

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

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 Comté Emmental 7 % 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) 9 % 14 % Comté milk Basic milk Milk price (€/hl) Comté Emmental 46 % Consumer price (€/kg) 20 %

Comté production has remained anchored in Franche-Comté as an up-market product Emmental production was transferred to the west, as a basic product Franche Comté Ain Total Comté production - France (tons) - source : DRAF 1971 (%) 2002 (%) Total Emmental production - France (tons) - source : DRAF Franche Comté Other historical areas West 1971 (%) 2002 (%) COMTEEMMENTAL

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

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 liters collected Source : fédération des coopératives laitières du Doubs, DPEI estimates TOTAL 3,0 0,6 ComtéEmmental  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 jobs1520 Indirect jobs250 TOTAL4 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 AOC, déc. 2000

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

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 : visitors/year Relocation of production €100 million investments 1000 new jobs From to 1,3 M hams/year Source:Consortium du jambon de Bayonne

Collective and individual promotional policies Actions by the Jambon de Bayonne IGP Consortium 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

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 protection Develops local activities Positive impact on the food chain Consumer demand Creates value at farm level

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