Development of Geographical Indication’s supply chains in the Balkans: Outlook and limits

Development of Geographical Indication’s supply chains in the

Balkans: Outlook and limits

20 years of farming and rural transition in Eastern Europe. What have we learned? SFER, Rural’Est, AgroSup Dijon,

October 20-21 2011

Magali Estève, Dr. Marguerite Paus (AGRIDEA),

Dr. Dominique Barjolle (ETH Zurich), Pascal Bernardoni (SEEDEV)

Outline

Research Questions Geographical Indications: definition and conditions Context in the Balkans Case studies:

Cheese from Livno (Bosnia and Herzegovina) Smoked ham from Uzice (Serbia)

Discussion and conclusions

Research Questions Case studiesDefinition & Context Discussion

What are the conditions and the limits of the implementation of the European GI scheme in two countries: Serbia and Bosnia and Herzegovina?

Relevance of the scheme transfer? Adaptability in a transition and Europeanization context?

Hypotheses: The implementation of a sui generis system of GI protection – as an

institutional transfer - implies: At national level: 1) a learning process (idea dissemination and

expertise production), 2) a network, 3) institutional competence At local level: negotiation processes (definition of the production

methods and geographical limits)

Research Questions:


Geographical Indications (GIs) are defined by the Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement as being “indications that identify a good as originating in the territory of a Member, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographic origin”.

Geographical Indications (WTO definition)

Protection of a denomination – IPR tool No explicit mention of the GIs’ collective dimension (based on

shared practices and know-how as well as common reputation).


Geographical Indications: conditions in the EU

1- Specificity/ typicity, linked to a territory (“terroir”), which makes the product clearly distinguishable from its competitors. (promotion of the “terroir”)2- Consumers' acknowledgment. The product has a name and is trustworthy. Anchored in the past, its reputation has developed progressively. (promotion of the product)3- A common code of practices and quality control under the responsibility of an external certification body. (promotion of the production methods)4- A collective organisation (loose or strong), an implicit condition reinforced by the European PDO/PGI regulation and the Swiss law.


Geographical Indications (European approach)

Beyond the explicit and implicit conditions to register a GI as a PDO or PGI, the European PDO and PGI regulation and the Swiss law clearly set rural development objectives (e.g. development of unfavoured regions through quality differentiation, cultural heritage maintenance)


Context – Western Balkan

WTO access (Bosnia and Herzegovina and

Serbia are observer governments)

EU integration (potential candidates)Europeanisation process

Harmonisation of legislationInstitutional transfer In the framework of the Community Assistance for Reconstruction,

Development and Stabilisation (CARDS) programme for the Western Balkans, a project called ‘Industrial and Intellectual Property Rights’ was launched in July 2003.


Context – Western BalkanTransition to a liberalised economy Withdrawal of State Agrokombinats (former Yugoslavia), role of

urban market supplier New actors in agro-food supply chains (entry of middle-sized

processors, traders, retailers & supermarkets) New organisation of supply chains and markets (coordination)


Context – Western Balkan Geographical Indications and legislation

Sui generis protection New Serbian law (revisions in 2006 and 2010) / New Bosnian law

(2002) Similar type of legislation (definition and concept of Geographical

Indication and Appellation of Origin), but: - the Institute for Intellectual Property is responsible for the register (technical expertise?)- Individuals, private companies, chamber of commerce, local authorities, or the State have the right to submit an application (collective approach is not mandatory),


Context – Western Balkan Geographical Indications and legislation

- marginal role of the producers in the management of the protected GIs (the organisation that will manage the GI is not specified),- there is no opposition procedure before the final registration (that would allow third parties to officially oppose to the protection of a product),- no certification and controlling procedures (certification by the State of “authorised users”),- the codes of practice are not public (lack of transparency towards consumers and “non-authorised” producers)


Case study: Livanjski Sir (cheese from Livno)documented by Bernardoni and Estève (2008)

This protection initiative is carried by a sheep breeders and cheese producers association (the Cincar association).

Facilitation: Italian NGO (UCODEP), financial

support from the Tuscany region and the Italian government

Specification: raw milk + definition of the production area by the Cincar association (cf particular ecosystem)

Codification: ewe milk, min 70%, code of practice finalised in 2008

Coordination: Association of household producers, exclusion of dairies

Heritage preservation: specific agricultural ecosystem – polje (valorisation of local resources)


Milk production

Cheese production

Cheese TypeLivno cheese100 % sheep milk

Quantities

Markets

Pudja Dairy Susa DairyTraditionnal

producers above 250 sheeps

Traditional producers under 250 sheeps

Livno type cheese Cow milk

Livno Dairy

70% sheep milk - 30% cow milkLivno cheese

On farm production

Cow milk

Dairies

Sheep milk

Livno green markets

Local tradersSmugglers

EXPORT MARKET : CROATIA

Supermarkets Restaurants, hotels

Gastarbeiter(diaspora)

NATIONAL MARKET : BiH

WholesalersMETRO

Livno shops

Liebe Petra

Dieser Text ist wirklich ziemlich verunglückt. Einerseits extrem hochgestochen (nicht nur im Stil, sondern auch in den Aussagen, wie soll etwa ein SCP-Projekt "structured as a strategic responsability for Macedonia's future" sein? Und CAC "necessary demand of contemporary human existence" sein?) und andrerseits unklar in den Aussagen (oder mindestens hab ich viel nicht verstanden). Ich zweifle, ob sich dieser Text noch retten lässt.

Viel interessanter wäre es mE z.B. eine ganz konkrete Reportage aus einem Dorf zu haben, zB. indem ein Journi mitgeht zu einer Filmvorführung und mit den Leuten spricht und darum herum noch einen Einleitungstext macht, der das Projekt erklärt. Oder ein Interview mit Bujar und Nikola über ihre konkrete Arbeit und der Frage, was ihnen die Zusammenarbeit bringt und wie sie aussieht (ebenfalls mit Einleitung zu Projekt). Ob sich sowas in letzter Minute noch machen


840 t 50 t 1’680 t 120 t

Liebe Petra

Dieser Text ist wirklich ziemlich verunglückt. Einerseits extrem hochgestochen (nicht nur im Stil, sondern auch in den Aussagen, wie soll etwa ein SCP-Projekt "structured as a strategic responsability for Macedonia's future" sein? Und CAC "necessary demand of contemporary human existence" sein?) und andrerseits unklar in den Aussagen (oder mindestens hab ich viel nicht verstanden). Ich zweifle, ob sich dieser Text noch retten lässt.

Viel interessanter wäre es mE z.B. eine ganz konkrete Reportage aus einem Dorf zu haben, zB. indem ein Journi mitgeht zu einer Filmvorführung und mit den Leuten spricht und darum herum noch einen Einleitungstext macht, der das Projekt erklärt. Oder ein Interview mit Bujar und Nikola über ihre konkrete Arbeit und der Frage, was ihnen die Zusammenarbeit bringt und wie sie aussieht (ebenfalls mit Einleitung zu Projekt). Ob sich sowas in letzter Minute noch machen lässt mit einem/r guten Journalist/in? Wenn ja, würde ich das machen. Eigentlich müsste Andreas das entscheiden, aber da er weg ist, können wir dafür die Verantwortung übernehmen.

Case study: Uzicka Goveda Pršuta (smoked beef ham from Uzice)documented by Bernardoni and Paus (2008)IDA, a local NGO is in contact with the Ministry of Agriculture and the Intellectual Property Office. Since 2007, meetings and working groups are organised to establish a new code of practice, shared by most of the Pršuta producers in the area.

Facilitation: Local NGO (Ibar Development Association) Specification: consensual definition of the production

area, negotiation about the origin of the raw material (beef)

Codification: discussion about the pieces of meat to be selected

Coordination: working group, difficult take off of the collective action (former Agrokombinat as single “authorised user”)

Heritage preservation: festival, local livestock


Processing = around 500 t

C SZl

Producers in Serbia (meat pieces)

Around 40 small processors

500 t x 16 Euros /kg = 8 mio Euros

Supermarkets, specialized shops

Traders

Serbian consumer market

Green markets

Import (Brazil, Argentina)


DiscussionLocal stakes

Exclusion processes through the definition of the geographical area and the production methods

Dilemma: strengthening the link to the terroir and traditional methods (resulting in exclusion process) versus promoting the economic development of the supply chain and the region

dual production (small households vs new processors, and role of supermarkets), new technology, definition of « traditional » production methods, risk of « delocalisation », individual strategy

Potential for small-scale farmers (but certification issue, collective action) Trade-off


Producers, processorsMotivations

Legal framework (national)

Certification body (quality

controls)

Local facilitators

From S. Réviron, 2007

Former systemIntellectual Property AgencyMinistry of AgricultureFood Safety Agency

Technical Cooperation Programmes

Negotiation,

cooperation

Collective

Negotiatio

nForeign and local NGOs, Foreign Aid Agencies

Structural changesNew actors

?

Consumers

WTO accessEU integration

Rural development objectives


DiscussionNetwork building and learning process (national level)

Large process of negotiation among diverse political and administrative institutions (power, responsibilities, competence building)

Difficulties for the administrative staff to comprehend the structural changes of the agro-food supply chains and markets

External pressures for changes within the institutional environment

Need for institutional capacity building Trainings and study tours for administrative representatives in Italy

(Livno cheese case) and Switzerland (ham from Uzice case) Perception of the “model”, knowledge from solutions applied

elsewhere Exchange with the European “epistemic” community (GIs’ experts

and professionals)


DiscussionNetwork building and learning process (local level)

Emergence of facilitative organisations (e.g. NGO UCODEP, IDA) that link producers and national institutions

Creation of a network composed of producers associations, NGO and facilitators, national representatives and foreign experts: negotiation at local and national levels

Potential conflicts related to different motivations Development of local and national networks and competence

building Sustainability of these networks? Short-term financial resources

versus long-term and demanding development of the GI framework


Conclusion

Structural changes at local level, Willingness to rapidly comply with EU requirements versus

current institutional context, Negotiation processes (at all levels), external motivations Potential vicious circle (loss of commitment at local level/

top-down approach at institutional level), but potential for rural development and local resources

valorisation


Thank you for your attention !

[email protected]@[email protected]@seedev.org

Producers, processorsMotivations

Legal framework (national)

Certification body (quality

controls)

Local facilitators

From S. Réviron, 2007

Intellectual Property AgencyMinistry of AgricultureFood Safety Agency

Foreign and local NGOs,

Foreign Aid AgenciesConsumersRural development objectives

Raised as one of the top priorities by the EU, the reform of the food safety system became logically for all the countries of the region an issue that is high on the policy agenda. Reference laboratories, veterinarian inspectors, HACCP, milk hygiene, avian flu, brucellosis, etc.; Ministries have to postpone their rural development strategy formulation. Still, the food safety issues are not solved, especially when it comes to the small-scale producers. It is therefore logically that people who have to find solutions to improve on-farm food safety and address traceability for instance, saw suddenly in geographic indications a tool to control processing and food safety. This preoccupation coupled with the fact that food quality in the Balkans is understood as food safety and standardization could reduce and even divert geographic indications’ scope. Other dimension such as socio-economic and environmental stake might be ignored because they do not correspond to the priorities dictated by the EU.

Development of Geographical Indication’s supply chains in the Balkans: Outlook and limits

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