Tag Archives: GI

GIs sales value of €75bln

Agri-food and drink products whose names are protected by the European Union as “Geographical Indications” (GIs) represent a sales value of €74.76 billion, according to a study published today by the European Commission. Over one fifth of this amount results from exports outside the European Union. The study found that the sales value of a product with a protected name is on average double that for similar products without a certification.

“European Geographical Indications reflect the wealth and diversity of products that our agricultural sector has to offer. Producers’ benefits are clear. They can sell products at a higher value, to consumers looking for authentic regional products. GIs are a key aspect of our trade agreements. By protecting products across the globe, we prevent fraudulent use of product names and we preserve the good reputation of European agri-food and drink products. Geographical Indications protect local value at global level”, Commissioner for Agriculture, Janusz Wojciechowski, said.

European food is famous for being safe, nutritious and of high quality. Traditional production methods contribute to the EU objective to also become the global standard for sustainability in food production.

EU quality schemes aim at protecting the names of specific products to promote their unique characteristics, linked to their geographical origin as well as know-how embedded in the region.

These product names are part of the EU system of intellectual property rights, legally protecting them against imitation and misuse. Agri-food products and wines are protected as Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI), and spirit drinks as Geographical Indications (GI). European Union also protects Traditional Specialities Guaranteed (TSG), highlighting the traditional aspects of a product without being linked to a specific geographical area. The sales value of agricultural products and foodstuffs labelled as TSG are worth €2.3 billion.

The study was based on all 3,207 product names protected across the 28 EU Member States at the end of 2017 (by the end of March 2020, the total number of protected names increased to 3,322). It concludes that the sales value of a product with a protected name is on average double than that for similar products without a certification.

According to the study, there is a clear economic benefit for producers in terms of marketing and increase of sales thanks to high quality and reputation of these products, and willingness of consumers to pay to get the authentic product.

The main findings of the study are:

Significant sales value: Geographical indications and traditional specialities guaranteed all together accounted for an estimated sales value of €77.15 billion in 2017, 7% of the total sales value of the European food and drink sector estimated at €1,101 billion in 2017. Wines represented more than half of this value (€39.4 billion), agricultural products and foodstuffs 35% (€27.34 billion), and spirit drinks 13% (€10.35 billion). Out of the 3,207 product names that were registered in 2017 (both GI and TSG), 49% were wines, 43% agri-food products and 8% spirits drinks.

Higher sales premium for protected products: the sales value of the products covered by the study was on average double than the sales value for similar products without a certification. The value premium rate stood at 2.85 for wines, 2.52 for spirits and 1.5 for agricultural products and foodstuffs.

A truly European policy: Each EU country produces products whose names are protected at EU level and serve as flagships for the traditional culinary heritage of regions and as economic drivers for the national agri-food sector.

Exports of geographical indications: geographical indications represent 15.5% of the total EU agri-food exports. Wines remained the most important product both in terms of total sales value (51%) and extra-EU trade (50%). The U.S., China and Singapore are the first destinations for EU GI products, accounting for half of the export value of GI products.

To ensure that the EU quality policy continues to deliver at its best, an online public consultation was launched from 4 November 2019 to 3 February 2020 to gather feedback on the policy from stakeholders. Among the key findings, a majority of respondents agreed that EU quality schemes benefit producers and consumers. The ‘factual summary’ report gives a detailed overview of the feedback received from the public consultation.

EU-China protect GI products

European Commission announced it has reached a landmark agreement with China to protect 100 European Geographical Indication (GI) products, including 26 Italian ones, in China and 100 Chinese GI in the EU.

https://twitter.com/philhoganeu/status/1192461158504128514?s=21

The emblematic Italian food products such as Barolo wine, Prosciutto di Parma ham and Grana Padano cheese will now have greater protection from imitation on the wast Chinese market.

Among the Chinese products to feature in the agreement are Pixian Dou Ban (Pixian Bean Paste), Anji Bai Cha (Anji White Tea), Panjin Da Mi (Panjin rice) and Anqiu Da Jiang (Anqiu Ginger).
Four years after coming into force, the scope of the agreement will continue to expand to cover an additional 175 GI names from the EU and China.

https://twitter.com/winesolutions1/status/1191731814634807296?s=21

European Geographic Indication products are renowned across the world for their quality,” said European Agriculture and Rural Development Commissioner Phil Hogan. “Consumers are willing to pay a higher price, trusting the origin and authenticity of these products, while further rewarding farmers.

https://twitter.com/euagri/status/1192026337050943488?s=21

This agreement shows our commitment to working closely with our global trading partners such as China. “It is a win for both parties, strengthening our trading relationship, benefitting our agricultural and food sectors, and consumers on both sides”.

EU quality schemes aim at protecting the names of specific products to promote their unique characteristics, linked to their geographical origin as well as traditional know-how. This is one of the great successes of European agriculture, with more than 3,300 EU names registered as either Protected Geographical Indication (PGI) or Protected Designation of Origin (PDO). A further 1,250 or so non-EU names are also protected within the EU, mostly thanks to bilateral agreements such as this one with China. In value terms, the market for EU geographical indications is around €74.8 billion, and together they account for 15.4% of total EU food and drinks exports.