support to more efficient and inclusive agrifood chains
Transcription
support to more efficient and inclusive agrifood chains
SUPPORT TO MORE EFFICIENT AND INCLUSIVE AGRIFOOD CHAINS STUDY TOUR 5 – 10 OCTOBER 2014 VIGNOLA (MO), CESENA (FO), BOLOGNA IMPLEMENTED IN COLLABORATION WITH WITH THE SUPPORT OF WITH TECHNICAL CONTRIBUTIONS FROM Support to more efficient and inclusive agrifood chains Study tour Vignola-Cesena-Bologna Development of origin-based labels in the horticultural sector Impressum Editor REDD ASSOCIATION Avenue Charles-Dickens 6 CH-1006 Lausanne Authors Pascal Bernardoni, Andrea Marescotti Layout Pascal Bernardoni © REDD ASSOCIATION, November 2014 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector Table of Content Table of Content ...................................................................................................................................... 1 Background of the study tour................................................................................................................... 1 Note ......................................................................................................................................................... 3 The Vignola Cherry PGI .......................................................................................................................... 3 The Amarene brusche di Modena (Jam by Sour cherries of Modena PGI) ............................................ 7 The Traditional Balsamic Vinegar of Modena PDO Aceto Balsamico Tradizionale di Modena PDO ..... 8 Pesca e Nettarine di Romagna et Pera di Emilia Romagna (The peach and nectarine of Emilia Romagna PGI and the Pear of Emilia-Romagna PGI) ............................................................................ 8 Authorities and institutions..................................................................................................................... 13 Analysis ................................................................................................................................................. 16 Lessons learnt ....................................................................................................................................... 18 Study tour Vignola-Cesena-Bologna Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector Introduction Background of the study tour Consumer demand for food products that bear a specific quality label, and its associated guarantees in relation to specific social expectations, is increasing. This is also true for labelling in relation to origin, traditions, and local expertise. Serbia has inherited from Yugoslavia the legal and institutional framework for the protection of Geographical Indications (GIs). As a reminder, GIs are indications that identify a good as originating in the territory where a given quality, reputation or other characteristic of the good is essentially attributable to its geographic origin. Nearly 50 GIs are registered in Serbia. However, GIs are still perceived by institutions, producers and consumers primarily as an IP protection tool. As a result, most of the GI producers’ initiatives aim primarily at the legal protection of the name without much concrete 1 action to comply with the specification , improvement and guarantee of the quality or promotion of the products. One of the reasons for such weak enforcement of the GI system is the lack of empowered organisations gathering value chain stakeholders, able to act collectively on the behalf and in the interest of their members. These organisations known as consorzio di tutela in Italy, consejo regulador in Spain or syndicat de défense et de promotion in France focus on defence and promotion of the GI and are not involved in the products trade. In order to enhance the development of sustainable GIs, a study tour to Italy on GIs in the 2 horticulture sector was organised . Participants included Serbian fruit producers, fruit and vegetable processors and representatives from relevant associations, as well as representatives from the Serbian Department of Agriculture Inspection and the Intellectual Property Office (see annex 1). 1 In some countries or some cases, Code of Practice or Book of Rules. In this document, we’ll use the term “specification” that is used in the EU and by the EC. 2 Study tour on Geographical Indications: Sharing Italian experience to promote traditional Serbian products. Study tour Vignola-Cesena-Bologna 1 Support to more efficient and inclusive agrifood chains th Development of origin-based labels in the horticultural sector th From October 5 – 10 , 2014, participants travelled to Rome and subsequently to the Emilia Romagna region of Italy to meet with key stakeholders to learn about five Italian products which have obtained Protected Geographical Indications (PGI) or the Protected Denomination of Origin (PDO) status in Italy and represent a successful illustration of GI implementation, namely: Ciliege di Vignola PGI; Amarene Brusche di Modena PGI; Pesca e nettarina dell’Emilia Romagna PGI; Pera dell’Emilia Romagna PGI and Aceto Balsamico Tradizionale di Modena PDO. The main purpose of the study tour was to acquaint participants with origin-based labelling strategies through the above-mentioned examples, facilitated by discussion on potential benefits of GIs with Italian fruit producing, processing, packaging and distribution firms, producers associations and regional authorities. The Study tour addressed: the GI system in Italy and its importance within the agribusiness sector, including reference to the legal and institutional framework, and its functioning; practical steps required to develop, produce, market and protect a GI label product; characteristics of five successful GI examples and problems encountered in the different phases (set up, adoption, marketing, protection); the role of the GI organization in relation to the value chain, cost and benefits for each member and the governance at territorial level; evaluation of GI effects in relation to sustainable development; the protection of GIs, “who does what”: internal and external controls and certification safeguard; and marketing aspects related to the GI label, adding value and redistribution of benefits along the value chain. This capacity building activity is part of a project organized under the FAO/EBRD cooperation agreement, financed by Luxembourg and contributing to the achievement of FAO’s Strategic Objective 4: Enable inclusive and efficient agricultural and food systems. On the project side, Mr Emmanuel Hidier, FAO Senior Economist, Ms Emilie Vandecandelaere, FAO Agribusiness Economist; Mr Andrea Marescotti, Associate Professor of Agri-Food and Rural economics, University of Florence; Ms Francesca Marrocco FAO Investment Centre; and Mr Pascal Bernardoni, REDD took part to part of the whole study tour. Study tour Vignola-Cesena-Bologna 2 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector Visits to the different GI case studies Note The report does not aim to document the integrity of the discussions the group had with the different interlocutors but rather to focus on the main issues that each visit/case revealed that are of interest to the participants. The Vignola Cherry PGI Visit to the Consorzio della Ciliegia di Vignola IGP Meeting with Walter MONARI (Director) and Chiara ETIOPI (Assistant) Cherry production has a long tradition in the region, and the reputation of the Vignola cherry goes beyond the national boundaries. In the 80’s, a shift towards high-density orchards was implemented to decrease costs. This innovation was promoted by the consortium and adopted first by pioneer farmers prior to becoming the rule for all farms. Meanwhile, important work on varieties has started to increase productivity. The sector is seeing a more predictable yearly yield, which is easing complications during pruning and harvesting. Also on the rise is the growth of market demanded varieties, in terms of size and colour. In 1990, before Vignola had obtained the protection of being designated a PGI, the consorzio, founded in 1965, protected the name for both cherries and plums (the other important fruit production in the area) as a collective geographical mark. In 2012, the Vignola cherry obtained the PGI, but so far the added value generated by the PGI is still limited, as before that: The cherry of the region already had a great reputation; The geographical collective trademark referring to the area of production already existed and was well known on the market; Study tour Vignola-Cesena-Bologna 3 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector A specification (code of practice) associated with this collective mark already ensured consistency in quality of the product sold on the market; The value chain was already well organised with cooperatives and a strong consorzio. The only real benefit of the PGI was to prevent the usurpation of the name Vignola with names such La Vignolese, VignolCherry, etc. The strategy is clearly defensive, as it applies to a product with a clear reputation linked to its origin. The restrictions on the list of admitted varieties approved by the Italian Ministry of Agriculture lead the consorzio to develop a collective trademark, “La Tentatrice” in order to sell cherry varieties excluded from the GI at a premium price. These varieties, often improved to better respond to market demand in criteria like size and colour, encountered full success, resulting in similar prices being obtained by the quality label and the PGI. A few years later, the product specification was revised in order to include all the locally cultivated cherry-tree varieties, although the modification has been approved to date. The consorzio is financed by a small fee the organization gets from the pale of the packaging boxes bearing the label to the producers at a price they would pay for the box without the label. In this way, the consorzio benefits from an economic sliding scale. The principles of human resources management are to keep the team slim by subcontracting as many tasks as possible and to ensure the maximum flexibility by employing staff as consultants (no employees). Azienda Agricola Quartieri Nino e Marisa, Via Leonardo Vecchiati 1335, Savignano Farm Quartieri Nino e Marisa, Panaro – Modena Meeting with Nino QUARTIERI (Farmer) This is a farm of 15 hectares of orchards, growing 51 varieties of cherries, peaches, plums, kiwi and persimmons, as well as producing honey. The farm is characterised by a high technology and investment level with orchards equipped with rain protection to avoid growing high moisture fruits. The investment on rain protection per hectare reaches € 50,000, which is equivalent to the annual turnover per hectare. The majority of the sales are done on-farm to consumers. Only the remaining 40% is sold through the cooperative. The farm is: Study tour Vignola-Cesena-Bologna 4 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector A member of the Association Strada dei Vini e dei Sapori "Città Castelli Ciliegi"; A member of the Foundation “Campagna Amica”/Coldiretti (one of the biggest Italian Farmers’ Unions); Part of a pedagogical farm network for kids/schools. Trials are conducted on-farm in cooperation with the consorzio and researchers. According to the consorzio director, institutional research is not effective enough to conduct useful and specific research in the cherry sector. Agriturismo La Civetta and discussion with Walter MONARI, Owner of la Civetta The visit showed how non-agriculture activities contribute to the income of rural households in marginal areas. In this case, hilly and mountainous areas are less favourable to the main sector of the region (i.e. fruits growing) and farmers have more diversified on-farm agri and non-agriculture activities. La Civetta also offers part time jobs to rural women. APOFRUIT Italia, Via Garofolana 636 – Vignola Visit to the packaging and distribution business APOFRUIT Italia Meeting with Claudio BIONDI (Vice-President) ApoFruit is one of the main players of the sector in Italy with: 3,700 producers members 194.000 tons of fruit and vegetable collected 205 Million Euro turnover 12 packing centres and 6 additional collection sites (see map) The geographical distribution of the whole national territory allows ApoFruit to supply a wide range of fruits and vegetables during the whole year. In addition to the cherry di Vignola, ApoFruit processes other GIs (Asparagus from Altedo, Potato from Bologna, Pears and Peaches from Emilia Romagna, Red Oranges from Sicily). Study tour Vignola-Cesena-Bologna 5 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector As for many other operators, Mr Biondi identified two positive effects of the PGI. The first is the accessibility to the market. The second is that in case of price drops of generic products, the PGI allows to keep prices at the same level. Mr Biondi gave the example of the Italian potato sector currently facing fierce competition from French potatoes imported at 15 Euro cents per kilo. Despite this depressed market context, the “Patate di Bologna, DOP” did not see their price decreased. However, Mr Biondi also insisted on the segmented differentiation strategy of the organisation with a number of quality standards and labels such as: PGIs; Solarelli (a trademark linked to higher-quality fruit owned by ApoFruit); Almaverde Bio (a collective trademark owned by a consorzio); Made in blue (a label promoting exports); SOLEMILIA - Terre Bolognesi. The use of these different labels is sometimes limited to subsidiaries of ApoFruit or members such as Canova s.r.l. being the user of Almaverde and a member of the consorzio managing this collective mark. Mr Biondi also insisted on price transparency and the method of calculating it on the basis of actual market prices. The different services ApoFruit provides to its members were also presented: Technical advice (advisors and info/training material); Financial investment support: o channelling EU funds under Common Market Organisation (Fruit & Vegetables: http://ec.europa.eu/agriculture/fruit-and-vegetables/index_en.htm) instruments o negotiating favourable credit conditions with commercial banks Trials (husbandry techniques, varietal); Crops insurances. Study tour Vignola-Cesena-Bologna 6 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector The Amarene brusche di Modena (Jam made with Sour cherries of Modena PGI) Cooperativa Essiccazione Frutta Monterè, Stradello Agazzotti 90 – Modena Meeting with Alberto Mario LEVI (President) and Andrea BERNARDI (Director) The cooperative is one of the two operators that process the sour cherries of Modena PGI in jam. The exact name of the product is confettura extra Amarene brusche di Modena. The consorzio gathers only 8 members (6 growers and 2 processors/growers). The small number of stakeholders is related to the original reason for starting the commercial production of sour cherries in the region. Indeed, the sour cherry production is linked to the production of plums and has represented a diversification strategy of plum growers equipped with automatic shaking machines. Therefore only the few growers owning large orchards and shaking machines engage in the sour cherry production. The president of Monterè, without confirming a clear influence on the price by the PGI, clearly stated that the PGI allowed them to enter the large retail sector with one fruit jam only, while the usual position of retailers is to request a larger range of flavours to single producers. Another effect of the PGI is a lot of free marketing and visibility due to media and general public interest in PDO/PGI. PGI jam Amarene Brusche di Modena with the EU PGI and the GI logo Study tour Vignola-Cesena-Bologna 7 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector The Traditional Balsamic vinegar of Modena PDO Aceto Balsamico Tradizionale di Modena PDO “L’acetaia comunale di Vignola. Production of Aceto Balsamico Tradizionale di Modena PDO”, Municipio di Vignola, Via Bellucci 1 – VignolaMeeting with Francesco ISEPPI The visit mainly illustrated the interaction of the public sector (in this case the local government of Vignola) with some GI value chains, for the promotion of the territory. Mr Iseppi insisted on the importance of “storytelling” on the products about the territory, as it promotes an interest in the visitors regarding the products and the region. Pesca e Nettarine di Romagna and Pera di Emilia Romagna (The peach and nectarine of Emilia Romagna PGI and the Pear of Emilia-Romagna PGI) Meeting with Luca Mari (Centro Servizi Ortofrutticoli (CSO), Peach & Nectarine and Pear PGI Consortia) Mr Mari highlighted the importance of peaches, nectarines and pears, which make up about ¾ of the fruit production of Emilia Romagna. The CSO has the authority to ensure the role of consorzio di tutela for two PGIs: the Pear and the Peach & Nectarine. The consorzio is composed of 14 members: 5 consorzi; 4 cooperatives; 2 chambers of commerce; 2 provincial governments; 1 association of municipalities. PGI producers pay the following fees to the Consorzio: Membership fee; A contribution per surface on the basis of the report of the certification body; and Study tour Vignola-Cesena-Bologna 8 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector A contribution per quantity on the basis of the report of the certification body. The consorzio has the following roles: Protection and control of the domestic market and consumption promotion of the export market; Promotion of the commercialisation of the product in line with the specification; Managing the PGI specification and ask for modification when needed; Organization of events or any other initiative aiming at the promotion of PGI products, or improvement of its reputation and image, including the use of different collective brands. As for the reputation and the value of the PGI, Mr Mari recognised that the image of the PGI pear and the PGI peach is still weak if compared, for instance, to the apple of Alto Adige. But the consorzio is working on the reputation and identity through: Fruit intrinsic qualities; The sticker with the logo applied on each fruit; The packaging; and A labelling that tells a story on the product or gives advice (see picture with advice on consumption) The consorzio promotes the PGI through Advertisement campaigns; Promotion at selling points (supermarkets); Fairs; TV shows; Flyers and information printing material. Study tour Vignola-Cesena-Bologna 9 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector Promotion of the PDO Parmigiano Reggiano and the PGI Pera dell’Emilia Romagna. The promotion of two products of a same region that can be consumed together: a technique frequently used for GIs from the same region In conclusion, Mr Mani highlighted the main strengths and weaknesses of the PGI pear from Emilia Romagna: Strengths: Link to the territory; Potentially high production volumes; Reputation (78% of consumers state to know the PGI). Weaknesses: Low homogeneity of the supply; High fragmentation due to the fact that anybody who can certify is allowed to sell; Low market penetration due to conflict with private brands; Low investment in advertisement. OROGEL, Via Dismano 2830 – Cesena (FC) Meeting with Matteo POLLINI (Responsible for Product Quality and Innovation) In 1967, a group of partners founded the Cooperative of Produce Farmers (COPA), which initially brought together 11 members, all from the Cesena area. Building on this experience, other cooperatives were formed (CAPOR – APORA – APA), and later Granfrutta Zani and ARPOR, which led in 1969 to the foundation of Consorzio Fruttadoro di Romagna, a consortium made up entirely of coops. After a phase of intensive growth and consolidation of the group cooperatives from 1972 to 1974, Fruttadoro expanded its activities and began exploring new product categories, especially some that had recently appeared on the market, such as deep-frozen and freeze-dried foods. In 1978, the gradual but constant growth of the Fruttadoro consortium brought about the foundation of OROGEL, a company which handles the production, sale, and distribution of frozen products from the Cesena plant. In 1995, with the continued growth of the Group's activities and the creation of other operating companies (there were now 15 in the Group) the Fruttadoro consortium took on the role of holding company. Moreover, fruit and vegetable products began to be grown in experimental fields using integrated and organic farming methods aimed at preserving their unique nutritional qualities (this marked the start of the "Benessere" project). Study tour Vignola-Cesena-Bologna 10 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector In 1996, OROGEL launched Compagnia del Gelato, a wide range of high-quality, traditional ice cream. To optimize the distribution of frozen products, OROGEL SURGELATI S.p.A was founded to oversee a complex network that would rapidly and efficiently serve all of Italy. Today, Orogel is the number one Italian-owned company in the frozen vegetable sector and number two in the frozen food sector, second only to a multinational corporation. For the vegetable and herb sector, OROGEL is the undisputed leader in the Italian market. The group is a combination of cooperatives, consorzi and limited companies, all entities belonging to the cooperatives, i.e. to the farmers. Jam of PGI fruits – in this case the peaches from Romagna – with the “Terre d’Italia” label belonging to Carrefour. Terre d’Italia is a label that includes a wide range of products with quality linked to the origin that in some cases are PGI or PDO, but for the majority are just geographical indications without protection. Study tour Vignola-Cesena-Bologna 11 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector According to Mr Pollini, again the PGI does not result in a premium price, but as other people met during the study tour, Mr Pollini emphasized first that the PGI eases the access to market and second it prevents price reduction. Mr Pollini emphasized also that PGI are just one standard among many others used by Orogel related to organic production and other processing standards for different markets. In addition, Orogel has developed different brands related to different entities of the groups (Orogel Fresco and Fruttadoro) and/or product lines (SoloSole for organic and Fresco Gusto for fruit harvested at full ripening). AgriBologna, Senso Fresco, Senso Fresco shop, via Viti 5 – Bologna Meeting with Lauro GUIDI (General Director) After presenting the two warehouses and explaining the different product lines, Mr Guidi explained the relationships between the different entities and the contractual relationships between producers and the cooperative. Study tour Vignola-Cesena-Bologna 12 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector AgriBologna is a consorzio of cooperatives, most of them founded in the 60’s. The consorzio was founded in 1989 and is now comprised of 135 agriculture enterprises. AgriBologna owns a number of companies, among them Senso Fresco that sells fresh-cut fruits and vegetables all over Italy. The group has reimbursed all credits used for important investments over the last 20 years. Becoming a new member of the cooperative costs € 250 as entry fee plus 0.3% of the sales for the first 6 years. This rule has never changed and is not linked to the value of assets of the cooperative. The voting right is based on the participation of the cooperative assets. In that sense, this cooperative is ruled a bit like a shareholder company. The conditions of payment to the producers are clear with a margin of 18% perceived by the cooperative. The calculation of the price is made as it is the case in ApoFruit and Orogel, by taking the market price of the day of delivery to give the best indication possible to the producer and to pay on the basis of the price of the day the cooperative finalizes the sale. As for other companies, the benefits resulting from the PGI seem limited to market access, at least at an initial stage. Authorities and institutions Ms Alessandra D’Arrigo (Representative of the Italian Ministry of Agriculture and Forestry Policies) Ms Arrigo emphasised first on the importance of GIs in Italy that with 160 registered PDO and 104 PGI it is the country with the highest number of registered denominations in the EU. 103 of these are fruits and vegetables and cereals, but this sector represents only 6.7% of the total turnover of all protected GIs. Producers and processors are located in few regions in Italy (high regional concentration of GIs) and the 10 main Italian GIs represent more than 80% of the total turnover of GI products. The total value of GIs is €12.6 billion (€2.5 billion is exported). Italian laws and regulation conform to EU directives, but the Italian Ministry has regulated many aspects of the GIs “life”, such as the composition and role of the Consortia, the controls, and the documentations to be sent to the Ministry when producers want to apply Study tour Vignola-Cesena-Bologna 13 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector (historical report, technical report, socio-economic report, etc.), that makes Italy differ from many other “less demanding” countries (with the sole exclusion of France, maybe). Consorzio di tutela (the organisation for the GI protection) which gathers the stakeholders of the GI value chain has important powers delegated by the public authority when they comply with some rules of representativeness set out by the Italian Ministry of Agriculture at the beginning of 2000. Another Italian specificity is the fact that an important number of competences are delegated to the regions. Regions have a role in promoting regional PDO-PGIs and supporting the registration/application procedure, and they give a non-binding opinion on the application producers sent to the Ministry. An important role of the regions is the control they have over the certification bodies. Regione Emilia-Romagna, Assessorato Agricoltura, terza torre, piano 19. Viale della Fiera 8 – Fiera District area – Bologna Meeting with Carlo MALAVOLTA (Responsible for Quality Labels and Food Certification) and Alberto VENTURA (Representative for Quality Labels and Food Certification). Mr Ventura insisted on the importance of the PDO/PGI sector in Emilia Romagna with 20 PGI and 19 PDOs present in the region (15% of the Italian GIs). With three big GI products, Parma ham, Parmigiano Reggiano and Grana Padano, the Emilia Romagna represents 44% of the national turnover of PDOs and PGIs. Mr Ventura presented the roles and functions of the different institutional players: European Union: Once received the application from the countries, instruct the files until registration at European level; The Italian Ministry of Agriculture: Evaluate the files after reception of the request and the regions opinion; forward the request to the EC; assess labels of products with PDO or PGI ingredients; Italian regions: Express a formal opinion after the reception of the application; supervise the work of the certification bodies; Certification bodies - (accredited EN 45011): control the compliance with specification after approval of the Ministry of Agriculture; Consorzi di tutela (Interprofessional bodies managing the PDO/PGI recognised on the basis of the law 526/99, art. 14): protection and promotion of the PDO and PGI on the market; assess labels of products with PDO or PGI ingredients; Study tour Vignola-Cesena-Bologna 14 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector Message to consumers asking them to call a green number 800 020 320 and inform the carabinieri NAC about « Made in Italy » indication on products from foreign origin. Ispettorato centrale della tutela della qualità e della repressione frodi dei prodotti agroalimentari – ICQRF (Food products quality and antifraud central inspectorate): authorisation of certification bodies, market surveillance and supervision of certification bodies activity; Nuclei Antisofisticazione e Sanità, NAS (Carabinieri Anti-food forgery and Health Team), Nucleo Antifrodi Carabinieri ,NAC (Carabinieri Antifraud Team), Corpo Forestale dello Stato, CFS (State Forest Corps): Various control and repression action on production sites and the market. The NAC and the NAS in action Checkfruit (inspection body of Pesca e nettarina dell’Emilia Romagna IGP e Pera dell’Emilia Romagna IGP) and the Ufficio Repressioni Frodi Meeting with Eugenio GOVONI (Director) and Nadia DISANTI (Responsible) Check Fruit is a certification body specialised in the fruit and vegetable sector. Check Fruit is a certifier authorised by the Ministry of Agriculture (The CB must be accredited EN 45011, replaced since 2012 by the norm UNI CEI EN ISO 17065) for the following protected GIs: Peach and nectarine from Romagna; Study tour Vignola-Cesena-Bologna 15 Support to more efficient and inclusive agrifood chains Pear from Emilia-Romagna; Scallion from Romagna; Chestnut from Castel del Rio; Green Asparagus from Altedo; Red orange from Sicilia; Potato from Bologna; Garlic from Voghiera; Melon from Mantova; Barbary fig di San Cono. Development of origin-based labels in the horticultural sector The Region supervises the work of the CBs. While the consorzio di tutela and different state entities ensure surveillance of the market to avoid counterfeits and frauds, the certification body focuses its activity on the control of the process of production and the product and their compliance with the specification. Based on the specification, the CB prepares the plan of control that has to be approved by the Ministry of Agriculture. The plan of control comprehends among other points: The conformity requirements (based on the specification); The auto-control system and production records; Measures in case of non compliance by the consorzio di tutela; Measures in case of non-compliance by single producers; Frequency of control and sampling rules. The certifications costs are rather moderate. With roughly € 200 for fruit growers (farmers) and € 500 for processors, these costs barely affect the production price. Conclusion Analysis The situation of the fruit sectors and the PGI value chains observed in Italy, and more specifically in Emilia Romagna, is interesting in many regards, but also very specific. First of all the sector is highly organised with: most growers organised in cooperatives or engaged in other forms of collective organisation; Study tour Vignola-Cesena-Bologna 16 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector packers and processors federated in consorzi or similar type of entities; strong vertical linkages ensured by the fact that often packing and processing enterprises belong to the farmer cooperatives. The long tradition of organisation and supply chain integration by the primary producers results in a number of very sustainable groups and subsidiaries. This explains the capacity of these operators to developing many products, acquire technology and mobilize capital and scale up production. Except for the Amarene Busche di Modena PGI, a quite small value chain and a confidential product, operators who are involved in the sector manage multi-products enterprises. Growers crop several types of stone and pome fruits; some are PGIs, a few producers are organic. Packers and processors use this product diversity that they further segment with different product lines. This is the case of ApoFruit, Orogel and AgriBologna. This diversification is then communicated by labelling and certification schemes. This holistic strategy concedes, but also requires, the affiliation of many producers, large areas and important production volumes. This high number of producers/rural families making their living from this sector contributes to rural livelihood. PGIs are only one of the diversification orientations of the operators who place the product on the market. The territorial origin is definitively an important selling argument. In western Europe it became one of the key attributes of food products. However, the origin is one of the quality attributes among many others such as environmental and social sustainability (organic, local food, IP, etc.), GMO free, taste (ripened harvested fruits such as Fresco Gusto, Premium lines such as Fruttadoro). This strategy is a response to the diversity of consumers and clients’ expectations. The fact that PGIs are only one of the differentiation strategies explains partly why premium prices are not achieved simply. The complexity of a mature, or for some people over-complicated, market requires from the actors to differentiate their production while keeping prices affordable. In this market, differentiation becomes the rule. In supermarkets, all products are differentiated, as generic products receive the label “Budget” or “Best price”. The success or the functioning of the system has not been disturbed by the introduction of the PGI. The clear share of the duties and role, between the consorzio and the economic operators, is key to avoid conflicts. In particular, the non-interference by the consorzi in trade activity is a major factor of stability and peaceful coexistence over time. The reasons for registering a GI can vary. A general distinction is made between defensive and offensive approaches. One of the fruit case studies observed during this study tour, the Study tour Vignola-Cesena-Bologna 17 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector cherry from Vignola, was rather defensive with the main objective being the denomination’s protection from misuses and abuses. The cases of the Amarene Busche di Modena, the Pear from Emilia Romagna and the Peach and Nectarine from Romagna aim mostly at building the identity and the reputation of the product and take a more offensive approach. In all observed cases, a logo was developed to strengthen the visual identity of the GI. In none of the cases of protected GIs encountered during the study tour were the costs of the certification mentioned as a problem. The only real inconvenience in complying with the specification mentioned by Vignola cherry producers has been the constraint of the limitation of varieties imposed by the Ministry of agriculture, but this problem seems on the way to being solved. The complication on the authorised varieties generated by the registration of the cherry from Vignola , and the most likely outcome, indicates that the system is ready to consider economic aspects, as more or at least equally important as the tradition and diversity. Should the authority show more realism and pragmatism from the start? Synergies exist sporadically within the tourism sector in the case studies observed. However, despite statistics of tourism in Emilia Romagna showing that it is an important sector, a closer analysis indicates a low number of foreigners, a low number of beds in rural tourism structures and a high number of nights on the coast (Rimini province), especially among young people and families during the Summer. In summary, despite efforts to attract tourists in rural areas of the Emilia Romagna, the different initiatives are poorly rewarded due to the characteristics of tourism in this area. This does not mean that at the individual level there are not opportunities that can be exploited, as the example of Agritourism La Civetta shows. In this case, the non-agriculture activity income is most likely higher than the selling of food products. Additionally, part of the sales are strongly linked to the tourist services offered by the entrepreneur. Lessons learned This last section aims at identifying aspects of approaches, strategies and institutional arrangements that can inspire Serbian players. Of course the gap between the Italian and Serbian realities is important and therefore any instrument or approach must be adapted. Beside the GI system, the organisational aspects have impressed all participants of the study tour. The sustainability of cooperatives and consorzi and the relationships between Study tour Vignola-Cesena-Bologna 18 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector value chain partners are the aspects that participants have retained from the study tour. At the same time, the observed case-studies have generated to some extent scepticism among the participants about the economic benefits of GI protection if applied to Serbian cases, at least at an initial stage. Concerning GI protection impacts of prices and incomes, we have seen above that, although premium prices are difficult to achieve merely through the exclusive protection of the GIs, certified GIs help to stabilise prices and ensure in some cases access to the market. This situation could be the one encountered in Serbia, where based on the economic crisis and low incomes, consumer readiness to pay more might be limited. It should also be taken into account that in recent years consumers’ behaviour has been greatly affected by the economic crisis, which persuades most consumers to take care of pure affordability concerns, thus weakening the attention paid to high-quality issues. The remark, as quoted by many people during the tour, that having PGI or PDO products helps stabilize prices and markets and isolate the PGI-PDO product from the high price variability encountered by the “conventional” products should be seen as an important effect. As mentioned above, the organisation of the sector has impressed the Serbian participants the most. The discussions have shown that in Emilia-Romagna this level of organisation prevailed even before the introduction of GI protection. Emilia-Romagna is effectively a farmers’ association-cooperatives-consortia. In other regions the situation is much worse, except maybe for Trentino Alto-Adige and a few other regions. In Serbia on the other hand, producer organisations may present some weakness. With few exceptions countrywide, producers could be better organized and associations further developed and engaged. In that respect, the cases of the regions of the producers participating in the study tours differ from each other, but all have some elements of value chain organisation: In Merosina, the presence of the cooperative Oblacinska Visnja is a good start for bringing producers together and engaging in differentiation strategies; In Kopaonik, the presence of several processing companies already clusters some producers but can be further developed; In Arilje, the association of the Arilje Entrepreneur (including mostly cold storage owners) and these companies clustering growers can represent a starting point, but linkages and trust are still very weak. Study tour Vignola-Cesena-Bologna 19 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector At the difference of Italy, in Serbia where value chain governance is to be strongly developed, adoption of GIs properly managed could significantly improve organisation and coordination among the value chain stakeholders. The decentralised system seen in Italy that delegates many competences on agriculture and agricultural policy to the Regions is not unique and can be found in Germany, Austria and other countries. This confers a great proximity between competent authorities and users of the system. Study tour Vignola-Cesena-Bologna 20 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector Participants Name Company / Insitution Value chain e-mail Nenad Kostić Company Foodland Kopaonik Ajvar / fruit Nenad.Kostic@foodland.rs products Vaso Lekić Company Foodland Kopaonik Ajvar / fruit vaso.lekic@foodland.rs products Milinka Jovanović Company Kopiko Kopaonik Ajvar / fruit kopiko_szr@yahoo.com products Zoran Arsić Processor Kopaonik Ajvar / fruit zrarsic@hotmail.rs products Vladimir Dinić Copperative OBLAČINSKA VIŠNJA Oblacisnka Visnja oblacinska.visnja@gmail.com Merosina Dušan Miladinović Cooperative OBLAČINSKA VIŠNJA Oblacisnka Visnja oblacinska.visnja@gmail.com Merosina Toplica Nikolić Producer and member Oblacisnka Visnja Cooperative OBLAČINSKA VIŠNJA Merosina Desimir Stevanović Individual Producer Mirjana Milutinović Association of entrepreneurs of toplicapadina@gmail.com Arilje raspberry mirjana.milutinovic@arilje.eu Arilje raspberry office@drenovac.co.rs Arilje Slobodan Obradović Owner of the Company Drenovac Nenad Vujović Head of Department of Agriculture nenad.vujovic@minpolj.gov.rs Inspection Zoran Dragojević Serbian Intelectual Property Offce zdragojevic@zis.gov.rs Tatjana Savic Gavrilovic Agrozem tanja@agrozem.org Jelena Djukic Translator Study tour Vignola-Cesena-Bologna jelenadjukic@yahoo.com 21 Support to more efficient and inclusive agrifood chains Development of origin-based labels in the horticultural sector REDD ASSOCIATION Avenue Charles-Dickens 6 - 1006 Lausanne - Switzerland T. +41 21 533 10 30 - F. +41 21 533 10 40 - www.redd.ch