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Traditions-Tastes-Regions Program in Hungary and its Green Paper aspects

Traditions-Tastes-Regions Program in Hungary and its Green Paper aspects. Imola KISÉRDI-PALLÓ Ph . D . Ministry of Agriculture and Rural Development HU EU High Level Conference on the Future of Quality Policy of Agricultural Products and Foodstuffs 12-13 March 2009 Prague CZ.

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Traditions-Tastes-Regions Program in Hungary and its Green Paper aspects

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  1. Traditions-Tastes-Regions Program in Hungary and its Green Paper aspects Imola KISÉRDI-PALLÓ Ph.D. Ministry of Agriculture and Rural Development HU EU High Level Conference on the Future of Quality Policy of Agricultural Products and Foodstuffs 12-13 March 2009Prague CZ

  2. STARTINGMOTTO „Dis-moi ce que tu manges, je te dirai ce que tu es” (Tell me what you eat and I tell you what you are) Le Physiologie du Gout Brillant Savarin, 1825

  3. Chapters • European Quality Concept to ensure the Competitiveness of Traditional Foods (1992-1997) II. Traditions-Tastes-Regions (TTR) Program in HU (1998-2002) III. The Complex Utilisation Strategy of the TTR (2003- ) • Consumer preferences to the Traditional Products (2004-2008) • Hungarian suggestions concerning Green Paper (2009)

  4. European Quality Concept – Quality Labelling since 1992 • Quality Guarantee for Consumers • Legal Protection for Producers against unfair market competition • Added Marketing Value grows competitiveness • Sustainable Rural Development efficient tool

  5. EUROTERROIRS ProgramConception (1993-1997) • Traditions, region and culture linked to the products as important quality features • Traditional and regional products are part of the national cultural heritage • Competitivenessof these products with highadded value can be increased in the overstocked European and globalmarket

  6. Inventaire des Produits Alimentaires des Regions de l’Union Européenne (4000) • L’Inventaire du Patrimoine Culinaire de la France (890) • Traditional Foods from Britain (395) • Deutschlands kulinarisches Erbe (300) • Inventário espanol de productos traditionales (532) • Inventário de los productos traditionais portugueses (351) (number of products in 1997)

  7. TRADITIONS-TASTES-REGIONS Program in Hungary 1998-2002 • Background: Euroterroirs Program in the EU (1993-1997) • Aim: To create a Collection of Traditional and Regional Products in Hungary - thus improving their competitiveness • Financing: PHARE (French experts) French Government (French-Hungarian Initiative, INFH) Hungarian Government (Ministry of Agriculture and Agricultural Marketing Centre)

  8. Traditional and Regional Product Concept Concept „Traditional and Regional Product” refers to the knowledge (local know-how, culture) available in local communities (place) and knowledge transfer over generations (time). Reference: SINI(2000):Typical Local Products, DOLPHINS Studies, EU 5th Research Framework Program

  9. 3 dimensions of Traditional and Regional Products History (Time) Culture (Tradition) Geography (Place) The Specific Quality of a Traditional and Regional Product is determined by Geography, History and Culture relating to the manufacture of the product. Source: KISÉRDI-PALLÓ, I.(2003):PhD Thesis, Corvinus University, Budapest

  10. Criteria of TTR Collection • Production by traditional method • Linked to a specific geographical region • Historical dimension (min. 2 generations = 50ys) • Good reputation • Existance of production and distribution

  11. Results of the TTR program • 1998: Elaboration of the criteria by the Scientific Panel • 1999: Collected 1148 product proposals by experts and examined by the Scientific Panel • 2000:300 product descriptions accepted by the National Council • 2001:1st edition of the Book in two volumes • 2002:Trademark of „HÍR” TTR registered by the Hungarian Patent Office, owned by the Ministry of Agriculture and Rural Development • 2003: CD version in HU and Book 2nd edition • 2004: CD version in EN, D and HU • 2005:3rdedition of book

  12. TTR - Regions Northern Hungary Northern Great Plain Western Transdanubia Central Hungary Central Transdanubia TTR-logo Southern Great Plain Southern Transdanubia

  13. The Regional Division of Products listed in the TTR Collection 86 90 80 70 58 60 46 50 43 40 30 28 30 20 9 10 0 SouthPlain North Plain South Central West. North Central Danub. Hu Hu Danub. Danub.

  14. The Sectorial Division of Products listed in the TTR Collection 120 110 100 80 55 60 40 31 22 22 20 13 13 10 0 meat bakery drinks spice sweets Confectionary Fruit-veget. dairy

  15. Complex utilisation strategy of TTR • Utilisation by instruments of collective marketing AMC • Utilisation by instruments of industrial property rights TMs & GIs • Utilisation in rural development programs RDP Approved by the Ministerial Board in 2003.

  16. Results of collective marketing (Agricultural Marketing Centre) • Publication of the Collection (book, CD, homepage, films) • Enlargement of the Collection (Transylvania) • Presentation of the Collection on international exhibitions (e.g. FOODAPEST, IFE Hungary, OMÉK, SIA, Royal Show, Grüne Woche) • Supported utilisation of the Collection in the education & research (competition for bakery & confectionery candidates) • Promoting the distribution of TTR products (e.g. CORA supermarkets)

  17. Utilisation by instruments of industrial property rights • PDO/PGI Submitted 11 national protected products to the COM until now Szegedi téliszalámi (Winter salami of Szeged) registered in 2007 • TSG Traditional soda water under national protection • Trademark TTR trademark system for products in the preparation phase

  18. Utilisation in the rural development programs 2000-2002: Rural Development Support System in Hungary 2003-2004:SAPARD in HU 2004-2006:Agricultural and Rural Development Operational Program 2007-2013: New Hungary Rural Development Program Criteria: • Producer organisations/groups • Conformity with quality, hygiene and animal welfare requirements (cross compliance)

  19. „Traditional Food” Working Groupin Hungary Established in the framework of theEuropean Organization for Quality HNC in 2004 Objective: to improve the utilization strategy of the TTR collection at European level Members: 124 experts Activities: Conferences (EU Community Conference, 2006) Seminars e.g. TAIEX seminar, 2005 Expert Meetings Proceedings and Publications Collaboration with other professional partners

  20. Consumer Expectations to Traditional Products with factor analyses • QUALITY factor High quality Safety Healthy • ECONOMIC factor Export orientation Competitiveness • TRUST factor Origin (Place dimension) History (Time dimension) Tradition (Culture dimension ) Conclusions: Three independent factors can be distinguished: quality, economic and trust factors. Within these factors can be seen the elements with high weighting as well. Within the trust factor, consumers contribute to determining role of geographical, historical and cultural aspects of the traditional products. Source: NÓTÁRI, M (2008) and POPOVICS, A (2008)

  21. Conclusions and Suggestionsbased on Marketing-Mix (4P) • Product: Trust to products – Consumers in favour of Hungarian foods with trade mark • Price: Moderate willingness to pay extra price for traditional products - suitable price level • Place: Direct sales - Hungarian corners in the supermarkets • Promotion:Effective marketing-communication strategy Source: SZAKÁLY, Z.- SZILÁGYI,O (2008) University of Kaposvár

  22. Determination of Conclusions and Determination of breaking points based on SWOT analyses The TTR products are suitable for the EU registration BUT • The cooperation of the producers is not perfect – To encourage the formation of producer groups • Modest reputation of the products - To enhance the reputation by collective marketing instruments • To promote their market accession – To create local or regional organizations (e.g.cluster, SF convivium) KISÉRDI-PALLÓ, I.(2006): EU Community Conference, Debrecen, Proceedings

  23. Example for creation of cluster Creation of cluster (e.g. Slow Food „convivium”) Objective: To protect the local products and culture Centre: BRA (ITALY) In the world: 1000 conviviums/80 000 members Hungarian conviviums: SF Budapest (2003) for confectionary SF Debrecen (2004) for honey cake SF Szatmár County (2005) for plum jam SF Kiskunság (2006) for mangalitza and bioproducts www.slow-food.hu

  24. Green Paper aspects – Hungarian comments Winning Together Building on Success Harnessing Diversity Key Elements of the Competitiveness Towards a European Vision of Quality /Study of European Organization for Quality, supported by the European Commission, 2000/ Green Paper on Quality Policy fits very well to these principles.

  25. Hungarian suggestions I. To extend the scope of the traditional product with soda water category Our reasons based on the case study revised by HBS: • Long traditional know-how (180 ys) • Well-organised producer group since 100 ys (nowadays 500 members, 10 000 employees in 1500 manufactures) • High quality, safety and healthy product • Innovative approach • Environmental approach (refilling) • Variable sales channels (B2B, B2C, locavore) • Strong cultural dimension (historical museum and book, link to literature and painting) • HU inventory which spread in Europe (AT,DE, PL, SL, UK, PT, ES, IT, RO, LV,LT, EE) „The experience of generations and centuries was needed before the Hungarian invented spritzer, the secret of long life.” (Sándor Márai) Pablo Picasso

  26. Hungarian suggestions II. To enhance the reputation of traditional products bynational or regional trademarks e.g. TTR Our objective: to introduce TTR as national quality scheme in the near future.

  27. Hungarian suggestions III. Common initiative of producer groups to apply for TSG registration (e.g. „kürtős kalács” i.e. chimney cake/ pastry horn in the CEECs) Traditional Chimney Cake originated from Transylvania (RO), and spread in Hungary and Slovakia and Czech Republic as well.

  28. Hungarian suggestions : Plus One Promoting innovation of traditional products related to their competitiveness: „New Regional Product” category (Ittersum, 2000): Products developed relying upon local specialities and experiences EU TRUEFOOD project - EU 6th Research Framework Prog. Intradfood 2005 – Innovation in Traditional Foods EFFOST Conference, Valence, October, 2005 Innovation is the new dimension of the quality according to the Futures Study, 2008, American Society for Quality Food Culture: Tradition, Innovation and Trust 17th IAMA Agribusiness World Forum Parma, June, 2007 Global Challenges - Local Solutions 19th IAMA Agribusiness World Forum Budapest, June 20-23, 2009

  29. CLOSINGMOTTO „Le fait des nations dependent de ce que ils mangent” The fate of the nations depends on what they eat. Le Physiologie du Gout Brillant Savarin, 1825

  30. THANK YOU FOR YOUR ATTENTION! E-mail: Kiserdii@fvm.hu

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