Labelling Quality: Institutional Framework for Origin and Tradition in Mediterranean Food Products

1. FAO – Ministère de l’agriculture et de la pêche maritime du Maroc Les produits alimentaires de qualité liée à l’origine et aux traditions en Méditerranée Casablanca 8-9 novembre 2007 Labelling Quality linked to Origin and Tradition:The Institutional FrameworkJean-Pierre BOUTONNET (INRA/SAD, Montpellier, France)Hélène ILBERT (CIHEAM/IAM, Montpellier, France) Hubert DEVAUTOUR (CIRAD/ES, Montpellier, France)

2. Identification and differentiation of agricultural and food products Threshold Quality = rules : definition of the product, sanitary requirements, etc. Compliance to regulation cannot be certified. Failure  persecution in front of penal Courts Distinctive Quality : Voluntary Signs of differentiation of a product on a particular market. Failure  loss of market shares Brands (Private goods) Certification brands (collective or club goods) Standards (voluntary compliance) Geographical Indications (public goods) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

3. Legal comparison : Brands vs. GI (1) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

4. Legal comparison : Brands vs. GI FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

5. Characteristics of the geographical indication Factor of competitiveness Open Voluntary Collective Valorisation of a quality, a reputation, or specific characteristics linked to a place: Origin = a place + a public code of practices Guaranty by the State FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

6. Example : pélardon • A localized product • An organisation for local development FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

7. pélardon A small goat cheese from Southern France 1980-90 1993 1997 1999 2000 2001 Crisis Decision to area OK code of French decree EU decision apply for a PDO Practices OK. The common objective: Protection against misuse of the name. The debate: Dairy plants …. Develop their commercial networks. Cheese producers : Image of a local and traditional know-how. FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

8. pélardon The code of practices is the result of a compromise. Main topics : a traditional localized cultural product. Livestock Permanent indoor farming forbidden 210 days pasture - 0,2 ha per milk goat Not more than 400g concentrate feed per litre of milk Cheese processing Raw milk Traditional handmade moulding and dripping of curd Freezing of curd forbidden A set of requirements more difficult for processors than for farmers. FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

9. Differentiation : An access to national market Retail price (euros per piece) Local goat cheese Pélardon PDO 2 Other PDO goat cheeses (price equivalent for the same weight) 1 National level Regional level Local level FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

10. pélardon A success resulting from a particular organisation • A collective entity specifically dedicated to the defence and management of the denomination, the “syndicat des producteurs de pélardon” : 120 farmers of which 40 members of the co-operative dairy plants, – 2 dairy co-operatives – 2 cheese ripening firms. • A certifier body. • A public authority : INAO (French Institute for Origin and Quality) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

11. Geographical Indications : The objectives of the institutional framework Reserve the use of the name Strengthen collective action : free entry, protection against opportunism (usurpation of notoriety) Guarantee the credibility of controls Equity of constraints, protection against unfair competition (individual appropriation of the collective resource) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

12. Geographical Indications : The elements of the Institutional Framework An institutional framework has to be built. Its fundamental elements are : A relevant public Authority A Collective holder of the denomination A Control body FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

13. The relevant public Authority(1) • Coordination of the whole system • Consistency with other rules: • Trade, frauds, price control, fairness of transactions • Agricultural Policy • Rural Policy • Public Health Policy • Trade and economic Policy • Juridical Defenceon the International Scene FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

14. The relevant public Authority (2) • Recognition and definition of the procedures and requirements for reaching recognition • Registration and definition of the procedures and requirements for obtaining the registration of the product • Definition of the rules and principles for the organisation of controls and organoleptic tests • Organisation of the control of specifications: by its own staff or by a third party ; definition of the rules for the agreement of the third parties FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

15. Collective holder of the denomination(all the elements of the chain, from farmers to consumers, through processors and distributors) • Writes the code of practices and proposes an area • Designs the control plan • Applies for the recognition and registration • Runs internal controls FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

16. Control Body (1) • Obtains the agreement from the Competent Authority in view to undertake external controls of the application of the code of practices : • Certification of the product (Audit + retaliation) : withdrawal of a non compliant group of designated products. • Inspection (Audit only) : Information on the non compliant group of designated products to the relevant authority, in charge of the retaliation (withdrawal of the product, fine, …) • Develops, in collaboration with the holder of the denomination, the code of practices FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

17. Control Body (2) • Checks the application of the code of practices • Checks the traceability of the products along the supply chain • Organises a control plan or an inspection plan with: • Self-controls Operated by each firm about its own activity • Internal controls Operated by the collective holder towards its members • External controls Operated by the third party control body (including the fair operation of the two previous ones) FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

18. Conclusions (1)Difficulties of Institutional Framework building • Long term process (several years) due to the necessity of collective agreement • Initial costs of building the schemes : heavy for small and medium size communities • Choice of the relevant Authority • Identification of the collective holder (legitimacy, motivation) • International recognition

19. Conclusion (2)Efficiency of the Institutional Framework • Necessity of institutions to empower local initiatives enabling economic actors to negotiate • Creation of an added value and equity of income distribution, through collective frameworks • Possibility to register the geographical indication under national laws and abroad (EU) ; access to a wider market FAO/MinAgMorocco-Casablanca nov 2007 – Boutonnet/Ilbert/Devautour : Institutional Framework

20. Thank you Jean-Pierre Boutonnet, Hélène Ilbert, Hubert Devautour Casablanca, 8-9 novembre 2007