SUPPORT TO MORE EFFICIENT AND INCLUSIVE AGRIFOOD CHAINS Study... · 2017-09-13 · Support to more efficient and inclusive agrifood chains Development of origin-based labels in the

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 Development of origin-based labels in the horticultural sector

Study tour Vignola-Cesena-Bologna

Impressum

Editor REDD ASSOCIATION

Avenue Charles-Dickens 6

CH-1006 Lausanne

Authors Pascal Bernardoni, Andrea Marescotti

Layout Pascal Bernardoni

© REDD ASSOCIATION, November 2014


Study tour Vignola-Cesena-Bologna

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 1

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

action to comply with the specification1, 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

horticulture sector was organised2. 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.



From October 5th – 10

th , 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.



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;



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:



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).



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.



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



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



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.



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).



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.



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.



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



(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;



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;



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.

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;



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



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



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.



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.



Participants

Name Company / Insitution Value chain e-mail

Nenad Kostić Company Foodland Kopaonik Ajvar / fruit

products

[email protected]

Vaso Lekić Company Foodland Kopaonik Ajvar / fruit

products

[email protected]

Milinka Jovanović Company Kopiko Kopaonik Ajvar / fruit

products

[email protected]

Zoran Arsić Processor Kopaonik Ajvar / fruit

products

[email protected]

Vladimir Dinić Copperative OBLAČINSKA VIŠNJA Oblacisnka Visnja

Merosina

[email protected]

Dušan Miladinović Cooperative OBLAČINSKA VIŠNJA Oblacisnka Visnja

Merosina

[email protected]

Toplica Nikolić Producer and member

Cooperative OBLAČINSKA VIŠNJA

Oblacisnka Visnja

Merosina

[email protected]

Desimir Stevanović Individual Producer

Mirjana Milutinović Association of entrepreneurs of

Arilje

Arilje raspberry [email protected]

Slobodan Obradović Owner of the Company Drenovac Arilje raspberry [email protected]

Nenad Vujović Head of Department of Agriculture

Inspection

[email protected]

Zoran Dragojević Serbian Intelectual Property Offce [email protected]

Tatjana Savic Gavrilovic Agrozem [email protected]

Jelena Djukic Translator [email protected]

mailto:[email protected]














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