The Convenient side of the Pdo certification Gabriella Arciprete Advanced management control and sustainable development Università degli Studi di Siena

1. DEFINITION AND REQUIREMENTS

To begin… PURPOSES Wines Beers Vinegars Other products (ex spices) Raw meats Cheeses Other animal products (eggs, honey, dairy products.) Olive oils Essential oils Cereals, fruits and vegetables Seafood EU schemes of geografical indication and traditional specialties PURPOSES to protect the reputation of the regional foods, To promote rural and agricultural activity to help producers obtain a premium price for their authentic products to eliminate the unfair competition and misleading of consumers by non-genuine products

Requirements of Protected designation of origin ‘designation of origin’ means the name of a region, a specific place or […]a country, used to describe an agricultural product or a foodstuff: — originating in that region, specific place or country, — the quality or characteristics of which are essentially or exclusively due to a particular geographical environment with its inherent natural and human factors, and — the production, processing and preparation of which take place in the defined geographical area; To receive the PDO status, the entire product must be traditionally and entirely manufactured (prepared, processed and produced) within the specific region and thus acquire unique properties. (Source: EU regulation No. 1151/2012)

Italian PDOs Grana Padano Pistacchio di Bronte Parmigiano reggiano Cinta senese Prosciutto di Parma

2. PDO PRODUCTS AND FIRMS

Why do firms adopt PDO certification on their products? To differentiate on a qualitative base To give information to the consumers To reach those consumers (or new markets) who are increasingly interested in typical products (=high quality, genuinity)

Is PDO always convenient ? BENEFITS - Premium price Pdo certification as a recognition of quality for the whole firm Protection from imitations and abuses of the name of a place COSTS - Preliminary costs: experts consulences Operational costs: adaptation of processes, controls Promotion costs

When PDO is convenient Large companies (capable to reduce the fixed costs by economies of scales) Companies and firms selling in international markets Products using a territorial name with a big reputational capital Products with not-long-listed standards to comply with (lower adaptation costs and conformity costs)

Sources https://agriregionieuropa.univpm.it/it/conte nt/article/31/8/costi-e-benefici-delle- denominazioni-geografiche-dop-e- igp?page=0%252C0%252C1 http://www.wipo.int/wipolex/en/text.jsp?file _id=309789 https://en.wikipedia.org/wiki/Geographical_i ndications_and_traditional_specialities_in_the _European_Union