Social capital and promotion of local agri-food products

1. Social capital and promotion of local agri-food products dr Anna Kłoczko-Gajewska Warsaw University of Life Sciences – SGGW anna_kloczko_gajewska@sggw.pl

2. Products protected by EU law (1/3) • Geographical Indication: • comes from certain area, place or country • the quality or characteristics are significantly or exclusively due to a particulargeographical environment • production, processing OR preparation takes place in the region • Designations of Origin • comes from certain area, place or country • specific quality, reputation or other characteristics attributable to thatgeographical origin • production, processing AND preparation takes place in the region

3. Products protected by EU law (2/3) • Specifically Traditional Products Guaranteed • produced in a certain way for at least decades • based on the tradition and culture All three protected from: • any direct and indirect commercial use of the name • any imitations : „method…”, „in the style of…” • any other false or misleading indication

4. Products protected by EU law (3/3)http://ec.europa.eu/agriculture/quality/door/list.html;jsessionid=pL0hLqqLXhNmFQyFl1b24mY3t9dJQPflg3xbL2YphGT4k6zdWn34!-370879141?locale=en • Czech Republic – 32 (4) (olomoucké tvarůžky ) • Poland – 36 (kabanosy) • Slovakia – 14 (4) (oravský korbáčik) • Hungary - 12   (budapesti téliszalámi)

5. What about other products? • Coutry regulations, which cannot interfere with EU regulations • Some specific branches (wines in France) • Other lists (traditional products in Poland) as a „first step”

6. Definition of social capital • “Intuitively, the basic idea of ’social capital’ is that one’s family, friends and associates constitute an important asset, one that can be called upon in a crisis, enjoyed for its own sake or leveraged for material gain“ (Woolcock) • “the norms and social relations embedded in the social structures of society that enable people to coordinate action and to achieve desired goals” [Narayan;2002]

7. Multidimensionality of social capital • Units of observation: • Macro (country level) • Mezzo (associations) • Micro (individuals) • Concepts of social capital • Structural vs cognitive • Bonding vs bridging

8. Types of social capital: structural vs cognitive • Structural • information sharing • collective action (e.g. producer groups or informal help) • collective decision making • … …through established roles and social networks, rules, and precedents • Cognitive: • norms and values • trust • attitudes and beliefs • …

9. Types of social capital: bonding vs bridging • Bonding: • groups of people relatively more alike • help to „get by“ • Bridging: • groups of people of different kind • help to „get ahead“ many groups simultaneously bond along some social dimensions and bridge across others

10. Bonding social capital Positive outcomes: • Strengthening links within a group • Higher solidarity and mutual trust • Predictability of actors’ behaviour • Possibility of getting help in need • Willingness to act together • Securing following rules and norms

11. For non-members (Unintentional) excluding non-members from possibilities Hostility towards non-members Using ties against other groups (mafia) For members Reinforcing inertia Lack of privacy Demanding conformism from members Strong norms and sanctions impeding development Bonding social capitalNegative outcomes

12. Bridging social capital • Positive outcomes • Creating inter-group networks • Better exchange of information • Building social inclusion BUT there is no evidence of influence on • creating solidarity • making people cooperate

13. Welfare Bridging Bonding Diversity of social networks Influence of of bonding and bridging social capital on development Source:based on [Woolcock, Narayan; 2000]

14. Results of the operating of social capital • In human capital (spread of knowledge) • In physical capital (jointly built objects) • Reducing transaction costs • Reducing collective actions dilemmas • Social sphere (trust) • Some negative outcomes, as well

15. Examples of social capital initiatives (1/2) • Partnerships between authorities • Joint policy development • Public-private partnerships • Joint policy development • Empowering rural enterprises • Traditional business clusters and networks

16. Examples of social capital initiatives (2/2) • Business networks for the joint distribution of rural products * • Business networks focusing on unique selling propositions * • Business networks strenghthening local tourism sector *

17. Source: http://www.pkky.fi/Resource.phx/pkky/hallinto/english.htx

18. Business network for the joint distribution of rural products: Finland, North Karelia • Local food manufacturers jointly selling their products to institutional kitchens and restaurants • Initiated by a public institute for adults’ education • Courses, seminars, study trips, consultancy, project manager • After 3 years „own shop” was established (wholesale and retail) • Products joinlty promoted in supermarkets

19. Joint distribution of rural products in North Karelia - impact • Creation of 10,5 full-time jobs • Increase of the products’ value • Creation of several new products • Using new marketing materials and channels

20. Sources: http://pl.wikipedia.org/wiki/Nawarra_(prowincja), http://www.navarra.es/home_es/Gobierno+de+Navarra/Organigrama/Los+departamentos/Desarrollo+Rural+Industria+Empleo+y+Medio+Ambiente/Acciones/Planes+especificos/Acciones+medio+ambiente/Conservacion+de+la+biodiversidad/Montes+de+la+Valdorba.htm

21. Business networks focusing on unique selling propositions: Spain, Valdorba • Strucured and holistic concept of sustainable management of wild mushroom production • Partnership of local authorities, educational institutes, public and private enterprises • Basing on well-defined and set structure for social and economic development • Beginning with multidisciplinary study of the characteristics of the region • Regular meetings for agreement on actions, speeches, conferences

22. Unique selling propositions in Valdorba- impact • Development of rural eco-tourism sector linked to mushroom activity (30% increase in rural hotel occupation) • Selling truffles jointly with other local products = 30% incerase in price for truffles • Great progress in providing basic services, eg. water supply, rubbish colection, Internet, social events • Development of local rural leaders

23. Source: http://fringewine.blogspot.com/2013/05/welschrieslingolaszrizlinggrasevina.html

24. Business networks focusing on unique selling propositions: Hungary, Villany • Vine tour: partnership of local authirities and small private enterprises • Initiated by local authorities, in order to fight with recession and depopulation • Study trip abroad, cheap loans, trainings, mutual information sharing, half-formal meetings • Certificates, road signs with pictograms, internet sites, brochures, study-tours, events

25. Unique selling propositions in Villany- impact • 3500 points of wine drinking • 70 certified services (shops, restaurants, craft, museums, etc.) • 900 beds for tourists • Tourists stay for longer and use more services • Since 1994 number of toursts have risen significantly

26. Thematic villages • Make the village recognisable • A unique topic to attract tourists (mostly services and impressions, but also particular products) • Needs a plan accepted by the villagers • Not a main source of income, sometimes just making the village a better place to live

27. Key success factors • Strong leader • Elites engaged in the process • Norms of cooperation • Existing institutions • Success of the first action • Flow of information

28. How easy is it to create and to destroy social capital?

29. Thank you for your attention Any questions are welcome anna_kloczko_gajewska@sggw.pl