Lessons from Jamaica coffee industry: quality certification of

Geographical Indications Opportunities and Limitations
Darin A. Sukha (Ph.D.)
Cocoa Research Centre
The University of the West Indies
St. Augustine.
http://www.cocoacentre.com; http://www.cacaocentre.com.
World Cocoa Foundation – 2nd Annual Seminar on Cocoa in the Americas
Theme Fine Flavour and Quality
7-8 September 2015
San Salvador, El Salvador
Outline
• Understanding GI
o
o
o
o
“Big money”
Historical
Philosophical
Formal definitions and Legal framework
• Using Blue Mountain Coffee experiences as an example
for cocoa
o Opportunities
o Limitations
• Way forward for cocoa
Linking product to origin is big business…
• Significant markets exist - especially in more affluent
countries and emerging markets:
o + US$50 Billion in global sales of GI products annually
o Scotland, Australia, China and Chile have +US$1 Billion in GI
exports
o (Mexico) Tequila exports: + US$ 725 Million
o (Jamaica) Blue Mountain Coffee: + US$ 24 Million
o Cocoa: untapped potential…
• Significant price differentials to be derived from origin
linked products
o For coffee it ranges from US$ 9 – US$ 43/pound
A historical understanding of GI
Historical association of special high value goods to
their origin
•
•
•
•
•
Silk and Ceramics from India and China
Salt and Coffee from Ethiopia
Ivory an Gold from Africa
Cedar from Lebanon
Porcelain from Dresden
A philosophical understanding of GI
The Quality Tree
• Like a tree, GI take their
strength from:
o The LAND
o The CLIMATE
o The PEOPLE nourishing and
protecting them
o The trunk represents the
intrinsic QUALITY that resides
inside and anchors this tree
to the people and land where
it grows
Roots to grow a Geographical Indication
• Origin
o Linking place to product
• Tradition
o Mixing practices and know how –
Tradition
• People
o All these coming together to create a
product with a special link to the
region
• Protection
o Reassuring consumers and producers
o Soil, Climate, Know-how, Special
breeds or Varieties
What products can GI be used for?
• Geographical indications are typically used for
agricultural products, foodstuffs, wine and
spirit drinks, handicrafts and industrial
products.
A more formal understanding
Formal definitions and the legal framework
What is a Geographical Indication?
• A sign used on products that have a specific
geographical origin and possess qualities or a
reputation that are due to that origin.
• The sign must identify the product as originating in a
given place.
• The qualities, characteristics or reputation of the
product should be essentially due to the place of origin
and/or process.
• There is a clear link between the product and its
original place of production.
Schemes for designations of origin, GI and
traditional specialities allow…
• Products to bear quality marks that enhance
their prestige.
• Consumers can easily recognise them by their
logos.
• Names often need to be protected from
imitation, faking or fraud.
Think of walls to protect quality…
Geographical Indications
Collective Marks
Trade Marks
Branding
Product Name
Control over origin-linked names are achieved via
• Labelling Laws and Listing Schemes
o
o
o
o
Unfair competition laws
Consumer protection laws
Labelling laws
Marketing and Publicity listing schemes linked to
reputation
• Trade Marks
o Distinctive non deceptive signs to distinguish product
 Individual trade marks
 Collective trade marks
 Certification marks
Individual Trade Marks
• Individual Trade Marks are recognizable signs,
designs, or expressions which identifies products or
services of a particular source from those of others.
• They distinguish the product as being owned by a
specified natural or legal person and apply to firms or
single organisations.
Collective Marks
• Collective marks are usually defined as signs which
distinguish the geographical origin, material, mode of
manufacture or other common characteristics of
goods or services of different enterprises using the
collective mark.
• The owner may be either an association of which
those enterprises are members or any other entity,
including a public institution or a cooperative.
Certification Marks
• Certification marks are usually given for compliance
with defined standards, but are not confined to any
membership.
• They may be used by anyone who can certify that the
products involved meet certain established standards
and criteria.
The GI concept encompasses the following
‘marks’ as well…
Protected Designation of Origin (PDO)
• Means a product is produced,
processed and prepared in a
specific geographical area using
the recognised know-how of local
producers and ingredients from
the region concerned.
Protected Geographical Indication (PGI)
• Identifies a product whose quality or
reputation is linked to the place or region
where it is produced, processed or prepared.
• The ingredients used need not necessarily
come from that geographical area.
• These products must adhere to a precise set
of specifications and bear this logo for ease
of recognition.
Traditional specialities guaranteed
• Focuses on tradition by recognising that a
product has a traditional composition or
production method that are not linked to a
geographical area.
The legality behind these definitions
and marks
Laws and Treaties – WIPO, WTO, TRIPS
• International trade made it important to try to
harmonize the different approaches and standards that
governments used to register GIs.
• A number of international treaties were established to
deal partly or entirely with the protection of
geographical indications or appellations of origin.
• These treaties are administered by:
o World Intellectual Property Organisation (WIPO)
o World Trade Organization’s (WTO) Agreement on Trade
Related Aspects of Intellectual Property Rights (TRIPS)
Relevant treaties administered by WIPO
• Paris Convention
• Madrid Agreement for the Repression of False
or Deceptive Indications of Source on Goods
• Lisbon Agreement
• Madrid Agreement
• Protocol Relating to the Madrid Agreement
• TRIPS Agreement
What rights does a GI provide
• Those who have the right to use the GI can prevent
its use by a third party whose product does not
conform to the applicable standards.
o E.g.: in the jurisdictions in which the Darjeeling
geographical indication is protected, producers of
Darjeeling tea can exclude use of the term “Darjeeling”
for tea not grown in their tea gardens or not produced
according to the standards set out in the code of
practice for the geographical indication.
• However, a protected geographical indication does
not enable the holder to prevent someone from
making a product using the same techniques as those
set out in the standards for that indication.
o E.g. other teas
Choice of legal instrument to use for
protection depends on
• Organisation of the producers
• Production capacity of producers to adhere to a
specification
• Available resources to exploit the name and origin
linked identity
• Proving and maintaining the link to origin
• Control requirements or regime
Think of walls to protect quality…
Geographical Indications
Collective Marks
Trade Marks
Branding
Product Name
Differences in philosophy
• The European and United States Governments
have fundamental differences in philosophy as
to what constitutes a "genuine" product.
Differences in Philosophy
• In Europe, the reigning theory is that of
terroir, that there is a specific property of a
geographical area, and that dictates a strict
usage of geographical designations.
• In the United States, the naming is generally
considered to be a matter of intellectual
property.
Philosophical overlap
• However, there is some overlap, with some American
products adopting a European way of viewing the matter.
The most notable of these are crops:
o Idaho potatoes
o Florida oranges
o Vidalia onions
• In each of these cases, the state governments of Georgia,
Florida, and Idaho registered trademarks, and then allowed
their growers—or in the case of the Vidalia onion, only
those in a certain, well-defined geographical area within
the state—to use the term, while denying its use to others.
Opportunities
The branches to harvest from are…
• Value
o Better income for producers
• Diversity and heritage maintained
• Stronger rural areas
o Reduced rural migration
• Consumers
o Reassured about quality and origin
• Reinforced communities
o Developing a sense of belonging
With the right support the quality tree
produces fruits…
• Origin, tradition and people
• Protection
• Economic value
• Valorisation of rural areas
• Recognition
• Social impact
• Consumer benefits
But first we need the fundamental
framework to develop a GI specification
for cocoa to link to chocolate…
Three fundamental elements for GI
specification development
• Forming producer groups
o Push for GI must be from producers
o What kind of group should they form
• Defining the product specification
o
o
o
o
Identifying and describing the product
Precise and scientific
Defining what to exclude
Boundaries and limits established for product
• Product quality and process control
o What aspect of the product is being controlled




Origin and Traceability
Specific quality of the final product
Grades
Production method - processing
o What is the appropriate system of control
Administrative steps required for origin linked
or GI scheme
•
Legal devices for protection must exist in the country
•
Guidance in filling out the GI application form
•
Receipt of applications from producer groups and payment of fees
•
Assessment of applications for technical and marketing validity
•
Checking out the production control system
o Local, Regional and ISO standards
•
Checking the validity of the name
o Upholding the rights of prior users of the name
o Opposition
•
Registration
•
Enforcement in the marketplace
Coffee as an example for cocoa
Cocoa and Coffee compared – global perspectives
Production
Post-harvest
Market
Consumption
COCOA
4 million t
Farmers – no mechanization
More than 90% of cocoa produced annually can be considered
as bulk (or basic) cocoa. Fine and flavor cocoas represent only
5% of world cocoa production.
Chocolate (cocoa is 50 to 70 % of the final product) – People
don’t know the origin of the cocoa beans used to prepare
chocolate (Now some consumer know the % of cocoa in the
chocolate)
Label
Organic chocolate
Fair trade chocolate
GI : Cocoa Arriba (Venezuela) (in progress)
Quality
Consumers are not aware of the relation between origin,
variety, post-harvest conditions and chocolate quality (in fact
it’s not easy because cocoa is 60 % of the chocolate and it’s a
manufactured product). For a production area it’s not easy to
control parameter for cocoa quality as the orchard contains a
mix of different clones and post-harvest is done by farmers.
Quality control
Visual aspect (cut-test) – Humidity - OTA
COFFEE
6 – 7 million t (Arabica 65 %)
Farmers – Cooperatives
Robusta: dry method
Arabica: wet method (mechanization)
About 8 % of the production is “Premium Grade Coffee”. Increasing
demand for the “specialty coffee market”.
Coffee is 100 % of the final product (coffee drink).
Consumers know the origin of their coffee:
• blend of Robusta/Arabica, pure Arabica/Robusta coffee
• Origin (Kenya, Costa Rica…)
Organic coffee
Fair trade
Rainforest alliance
Utz kapeh
Bird friendly
CCCC
GI : Kenya Coffee – Blue Mountain – Bourbon pointu Generally for an area the production comes from a specific clone
(Blue Mountain coffee orchard is planted with Typica Coffee (90 %)
– “Bourbon pointu” obtained with Arabica Laurina). For both origin
farmers harvest red cherries and deliver coffee cherries to factories
that process coffee by the wet method and after dry it. So it’s easier
to describe “qualities characteristics” as there is a strong link
between the product and the quality. The only transformation for
coffee industry is roasting.
Visual aspect (Green coffee bean analysis). – Humidity – OTA Cupping
Features of the Jamaican coffee industry applicable for
cocoa
• Definition and organisation of the industry
o
o
o
o
Formal articles of association for applicants
Brand definition
Suitable growing areas defined and linked to quality attributes
Classification of product quality
• Quality certification of producers and exporters
o
o
o
o
Standardised Training in production and processing
Extension and advisory teams for farmers, processors and dealers
Standardised assessment protocols and a defined typical quality
Local and external certification
• Traceability
o Defined growing areas with registered growers, processors and dealers
o Approved listing of chemicals and other inputs
• Sensory testing
o Tasting in approved facilities using standardised methods
Brand Definition depending on growing elevation
• Only coffee grown at elevations
between 3,000 and 5,500 feet
(1,700 m) could be called Jamaica Blue
Mountain.
• Coffee grown at elevations between
1,500 and 3,000 feet (910 m) is called
Jamaica High Mountain.
• Coffee grown below 1,500-foot (460 m)
elevation is called Jamaica Supreme or
Jamaica Low Mountain.
Jamaica Blue Mountain® Coffee – product defined
and certified
• Jamaican Blue Mountain Coffee or Jamaica Blue Mountain Coffee is
a classification of coffee grown in the Blue Mountains of Jamaica.
• Blue Mountain coffee are noted for and characterised by their
“intense aroma, along with an intricate range of flavours with a
subtle hint of herbs, spice and chocolate and lack of bitterness”.
• Jamaica Blue Mountain Coffee is a globally protected certification
mark, meaning only coffee certified by the Coffee Industry Board of
Jamaica can be labeled as such.
• The Coffee Industry Board of Jamaica must approve and issue
licenses to the cultivators and exporters of Jamaica Blue Mountain
Coffee.
• The climate of the region is cool and misty with high rainfall. The
soil is rich, with excellent drainage. This combination of climate and
soil is considered ideal for coffee.
Source: http://en.wikipedia.org/wiki/Jamaican_Blue_Mountain_Coffee
Where are the Blue Mountains?
©
Source: Loreen Walker, CTA ECDPM Workshop (2008)
The Coffee Industry Regulation Act
• The Coffee Industry Regulation Act specifies what coffee may use the Blue
Mountain label. Additionally, it restricts the use of the Blue Mountain
trademark to those authorized by the Coffee Industry Board. Broadly
speaking, coffee harvested from the parishes of Saint Andrew, Saint
Thomas, Portland and Saint Mary may be considered Blue Mountain
coffee. The specific boundaries are defined as follows:[2]
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Starting at Skibo and proceeding in an east-south-easterly direction to Swift River;
thence east-south-easterly to Chelsea;
thence east-south-easterly to Durham (Samba Hill);
thence south-easterly to Belleview;
thence south-easterly along the western slope of the John Crow Mountain to Cedar Grove;
thence westerly to Font Hill;
thence north-westerly to Ramble;
thence westerly to Good Hope;
thence north-westerly to Dallas;
thence north-westerly to Industry Village;
thence north-westerly to Maryland;
thence north-westerly to Golden Spring;
thence northerly to Brandon Hill;
thence north-easterly to Tranquility;
thence east-north-easterly to Skibo.
Source: http://en.wikipedia.org/wiki/Jamaican_Blue_Mountain_Coffee
Quality Classifications of the Blue Mountain Label
• The Coffee Industry Regulations Act allows for five classifications:
• Blue Mountain No. 1 - 96% of beans must have a screen size of 17/20. No
more than 2% of the beans may have significant defects.
• Blue Mountain No. 2 - 96% of beans must have a screen size of 16/17. No
more than 2% of the beans may have significant defects.
• Blue Mountain No. 3 - 96% of beans must have a screen size of 15/16. No
more than 2% of the beans may have significant defects.
• Blue Mountain Peaberry - 96% of beans must be peaberry . No more than 2%
of the beans may have significant defects.
• Blue Mountain Triage - Contains bean sizes from all previous classifications.
No more than 4% of the beans may have significant defects.
Source: http://en.wikipedia.org/wiki/Jamaican_Blue_Mountain_Coffee
What is the situation for cocoa regionally?
Extremes
exist!
What do we have in place already in Trinidad and
Tobago already?
Support systems in place
• Administrative supportive
o Intellectual Property Office
o Trade Implementation Unit of
Min of Trade, Industry and
Investment
o Cocoa Development Company
of T&T established
o Government appointed
committee to oversee and
explore GI initiatives
• Listing of potential GI for
T&T
• Farmer Clusters identified
and Co-operatives
registered where possible
• Ongoing research/activities
generating information in
support of GI
o GIS mapping
o Flavour profiling of clusters
for brand building
o Quality certification
 Local
 Regional
o Traceability systems
GIS modelling for cocoa suitability
Grading and
Quality
• National cocoa grades
defined
• Regional grades inline
with international
certification bodies
under review
• Quality certification
becoming
mainstream
Flavour profiling at CRC/UWI
Research linking flavour to
“Terroir”
Studies into Processing Location effects on cocoa
flavour
Attribute Intensity
6
***
5
***
4
***
LRE
3
ME
***
2
SJE
*
1
th
er
O
/g
re
en
ea
ny
ut
ty
Ra
w/
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Fl
or
al
Fr
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Bi
tte
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A
str
in
cid
A
Co
co
a
0
* P≤0.05
** P≤0.01
*** P≤0.001
Not Significant (NS) P>0.05
•
General flavour trends for the
processing locations from average
scores for individual clones
– Manickchand Estate
• higher acid and fruity scores
– San Juan Estate
• lowest acid and fruity scores
• highest floral scores
– San Juan Estate
• highest cocoa flavour scores
– La Reunion Estate
• generally between scores for ME
and SJE
Studies into Growing Location effects on cocoa
flavour
6
*
4
***
ICG,T
**
LRE
3
Marper
UWI
2
1
*
* P≤0.05
** P≤0.01
*** P≤0.001Not Significant (NS) P>0.05
Ot
he
r
ree
n
ea
ny
/g
tty
Ra
w/
b
Nu
al
Fl
or
ty
Fr
ui
Bi
tte
r
ge
nt
As
tr i
n
Ac
id
co
a
0
Co
Attribute Intensity
5
Independent NIR profiling to support flavour
effects
4
4
2
‡
0
‡
‡
La Reunion Estate
Manickchand Estate
‡
San Juan Estate
-2
-4
LDA Factor 2 (37.8 %)
LDA Factor 2 (8.3 %)
6
3
2
1
1 ICG,T
4
0
2 LRE
4 UWI
2
-1
1
-2
-3
-4
-6
-6
-4
-2
0
2
4
LDA Factor 1 (91.7 %)
6
-4
-3
-2
-1
0
1
2
LDA Factor 1 (62.2 %)
3
4
Limitations
Challenges in creating and maintaining a GI
• Avoid poor design or inadequate governance structure
o Avoid dominance by narrow interests or a single enterprise
• Discourage GI if the products lacks sufficient distinguishing characteristics
or reputation for its origin
o Explore other origin marketing protection options like Trade marks and
Indications of source
• Keep costs down
o Organisational, Institutional, Product spec. definition and ongoing operational
costs
• Controls must be appropriate to the product and market
• Ensure that there is a simple, clear and functional GI registration system
locally
What else do we need to get our act together?!
• Systematically define and monitor our cocoa production
and processing along the lines of GAP, HACCP based
systems and SPS
• Develop local certification marks and traceability systems
• Aim for external certification (if cost is feasible)
• Build awareness and education of all stakeholders about
the options, process, implications, monitoring and costs
of seeking GI’s
Only then can we sensibly explore niche marketing
based on flavor, other attributes and terroir (GI)
Our needs for a successful GI…
• Strong organisational and institutional structures to maintain,
market and monitor the GI.
o Long term commitment to the core processes of
 Identifying and demarcating the GI
 Organising existing practices and standards
 Establishing a plan to protect and market the GI
• Equitable participation among the producers and enterprises in the
GI region.
• Strong market partners committed to promote and commercialise
the GI
• Effective legal protection
o Monitoring and enforcement to reduce fraud
Conclusions
• GI contributes to the social and sustainable
development of the rural area concerned
via:
o Avoiding rural migration
o Maintaining biological diversity
o Maintaining small scale producers
o Preserving traditional knowledge
o Improving market access – global access linked
to local traditions
What we want to have at the end of it all…