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1 Labelling Quality linked to Origin and Tradition : The Institutional Framework Jean-Pierre BOUTONNET (INRA/SAD, Montpellier, France) Hélène ILBERT (CIHEAM/IAM,

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Presentation on theme: "1 Labelling Quality linked to Origin and Tradition : The Institutional Framework Jean-Pierre BOUTONNET (INRA/SAD, Montpellier, France) Hélène ILBERT (CIHEAM/IAM,"— Presentation transcript:

1 1 Labelling Quality linked to Origin and Tradition : The Institutional Framework Jean-Pierre BOUTONNET (INRA/SAD, Montpellier, France) Hélène ILBERT (CIHEAM/IAM, Montpellier, France) Hubert DEVAUTOUR (CIRAD/ES, Montpellier, France) FAO – Ministère de lagriculture et de la pêche maritime du Maroc Les produits alimentaires de qualité liée à lorigine et aux traditions en Méditerranée Casablanca 8-9 novembre 2007

2 2 Identification and differentiation of agricultural and food products Threshold Quality = rules : definition of the product, sanitary requirements, etc. Compliance to regulation cannot be certified. Failure persecution in front of penal Courts Distinctive Quality : Voluntary Signs of differentiation of a product on a particular market. Failure loss of market shares Brands (Private goods) Certification brands (collective or club goods) Standards (voluntary compliance) Geographical Indications (public goods) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

3 3 Legal comparison : Brands vs. GI (1) BrandGeographical Indication PROTECTION OF ORIGINAL NAMES Type of lawRegulating human creation and property. Regulating the links between human activities and nature. TermLinked to the use made by the owner: prescription if not used. No prescription : terroir and heritage have no term. Type of propertyIndividual, owned by a person or an organisation. Asset of the firm : can be evaluated and sold. Collective, even if only one user. Not possible either to delocalise or to sell. ObjectivesCorporate Sign. The product and process can be changed immediately. Codifying tradition and constant processes. FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

4 4 Legal comparison : Brands vs. GI BRANDGEOGRAPHICAL INDICATION PROTECTION OF ORIGINAL NAMES Types of requirements about characteristics of the product and process Up to the owner. May change without informing the customer. Code of practices discussed by the stakeholders and integrating collective concerns. May change after agreement of the relevant collective organisation. Everybody is informed of any change. Transmission to future generations. FunctionsIncome for the ownerCollective action with redistribution of value added to all stakeholders. Local and community development FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

5 5 Characteristics of the geographical indication Factor of competitiveness Open Voluntary Collective Valorisation of a quality, a reputation, or specific characteristics linked to a place: Origin = a place + a public code of practices Guaranty by the State FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

6 6 Example : pélardon A localized product An organisation for local development FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

7 7 pélardon A small goat cheese from Southern France Crisis Decision to area OK code of French decree EU decision apply for a PDO Practices OK. The common objective: Protection against misuse of the name. The debate: Dairy plants …. Develop their commercial networks. Cheese producers : Image of a local and traditional know-how. FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

8 8 Livestock Permanent indoor farming forbidden 210 days pasture - 0,2 ha per milk goat Not more than 400g concentrate feed per litre of milk Cheese processing Raw milk Traditional handmade moulding and dripping of curd Freezing of curd forbidden pélardon The code of practices is the result of a compromise. Main topics : a traditional localized cultural product. A set of requirements more difficult for processors than for farmers. FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

9 9 Differentiation : An access to national market Retail price (euros per piece) National levelRegional levelLocal level 1 2 Local goat cheese Pélardon PDO Other PDO goat cheeses (price equivalent for the same weight) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

10 10 A success resulting from a particular organisation A collective entity specifically dedicated to the defence and management of the denomination, the syndicat des producteurs de pélardon : 120 farmers of which 40 members of the co-operative dairy plants, – 2 dairy co-operatives – 2 cheese ripening firms. A certifier body. A public authority : INAO (French Institute for Origin and Quality) pélardon FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

11 11 Geographical Indications : The objectives of the institutional framework Reserve the use of the name Strengthen collective action : free entry, protection against opportunism (usurpation of notoriety) Guarantee the credibility of controls Equity of constraints, protection against unfair competition (individual appropriation of the collective resource) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

12 12 Geographical Indications : The elements of the Institutional Framework An institutional framework has to be built. Its fundamental elements are : A relevant public Authority A Collective holder of the denomination A Control body FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

13 13 The relevant public Authority(1) Coordination of the whole system Consistency with other rules: Trade, frauds, price control, fairness of transactions Agricultural Policy Rural Policy Public Health Policy Trade and economic Policy Juridical Defence on the International Scene FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

14 14 The relevant public Authority (2) Recognition and definition of the procedures and requirements for reaching recognition Registration and definition of the procedures and requirements for obtaining the registration of the product Definition of the rules and principles for the organisation of controls and organoleptic tests Organisation of the control of specifications: by its own staff or by a third party ; definition of the rules for the agreement of the third parties FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

15 15 Collective holder of the denomination (all the elements of the chain, from farmers to consumers, through processors and distributors) Writes the code of practices and proposes an area Designs the control plan Applies for the recognition and registration Runs internal controls FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

16 16 Control Body (1) Obtains the agreement from the Competent Authority in view to undertake external controls of the application of the code of practices : Certification of the product (Audit + retaliation) : withdrawal of a non compliant group of designated products. Inspection (Audit only) : Information on the non compliant group of designated products to the relevant authority, in charge of the retaliation (withdrawal of the product, fine, …) Develops, in collaboration with the holder of the denomination, the code of practices FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

17 17 Control Body (2) Checks the application of the code of practices Checks the traceability of the products along the supply chain Organises a control plan or an inspection plan with: Self-controls Operated by each firm about its own activity Internal controls Operated by the collective holder towards its members External controls Operated by the third party control body (including the fair operation of the two previous ones) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

18 18 Conclusions (1) Difficulties of Institutional Framework building Long term process (several years) due to the necessity of collective agreement Initial costs of building the schemes : heavy for small and medium size communities Choice of the relevant Authority Identification of the collective holder (legitimacy, motivation) International recognition

19 19 Conclusion (2) Efficiency of the Institutional Framework Necessity of institutions to empower local initiatives enabling economic actors to negotiate Creation of an added value and equity of income distribution, through collective frameworks Possibility to register the geographical indication under national laws and abroad (EU) ; access to a wider market FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

20 20 Thank you Jean-Pierre Boutonnet, Hélène Ilbert, Hubert Devautour Casablanca, 8-9 novembre 2007


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