Towards food quality: European dimension for consumers and farmers
In fact, the EU quality food schemes were created about two decades ago. Since then, one thousand agricultural products and foodstuffs from across the EU and beyond have been already registered. In recent years there has been a boost in applications due to enlargements of the EU and a growing interest from non-EU producers, e.g. from India, China, Thailand, Vietnam, etc. The advantages of the quality products' schemes are evident both for farmers and consumers in all member states.
High quality food-sector: progress & competitiveness
Although the agro-food industry represents 2% of the EU-27 GDP and 13.5% of total employment in the EU's manufacturing sector, its importance is vital for citizens. Besides, the sector consists of approximately 310 000 enterprises, including some global leaders. It continues to play a fundamental role in satisfying the needs of consumers and contributes an annual production of more than € 600 billion to the EU economy.
However, the entire European food supply chain has entered a period of adjustment. Consumer preferences are changing as a result of income and lifestyle developments as well as shifts in population. Customer concerns about food safety, and food quality; health and prices have also imposed stringent requirements on the sector.
Recent r oadmap to boost the European agro-food industry dates back to Commission's initiatives in July 2009. The Commission underlined, that the EU's food industry was not excluded from the economic downturn. To give this important industry sector fresh impetus, the then European Commission's Vice President Gunter Verheugen and Commissioners Mariann Fischer Boel and Meglena Kuneva, prepared recommendations for the EU High-Level Group, which were issued in spring 2009.
The Commission officially acknowledged a call upon industry and national authorities to help implement recommendations which should lead to a more competitive agro-food sector for the benefit of consumers, farmers and the agro-industry. The Commission's idea was to elaborate recommendations to assist the promotion of high quality food for European citizens.
The Commission's Roadmap of Key Initiatives (from 2009) was supposed to be implemented, generally, by the participating member states interested in the following coordinated actions:
• improvement of the transparency of the fixing of prices and contractual arrangements along the food supply chain;
• establishing a market surveillance mechanism of counterfeiting ;
• a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) to assess the position of the European agro-food industry in the global market;
• simplification of the administrative procedures, particularly for SMEs, for participation in research funding programs;
• setting up a social dialogue in the agro-food industry;
• developing educational programs which raise awareness of the importance of the agro-food industry;
• setting up a European Forum to discuss the improvement of commercial relations among the players of the food chain , with the aim to adopt an EU wide code of conduct;
• launching a study on the effects of retailers' own brands on the competitiveness of the agro-food industry, in particular on Small and Medium-Sized Enterprises (SMEs);
• promotion of the instruments available for SMEs , e.g. Enterprise Europe Network.
The High Level Group on the competitiveness of the agro-food industry (bringing together senior policy makers from the agro-food industry, civil society and professional associations) identified and addressed issues that determined the competitiveness of the agro-food industry. Major outcome was the direction towards quality food as a stable framework for years to come.
The food and drink industry is one of Europe's most important and dynamic industrial sectors. It is made up of about 280 000 companies, over 90% of which are SMEs; it provides jobs for 4 million people. The European food industry is the EU's “number one industry” in terms of turnover (around € 800 billion).
Quality package reform
The EU quality registers for agricultural products and foodstuffs comprise three kind of quality stuff. The EU quality package reform was adopted on 10 December 2010; the package comprised a number of measures designed to consolidate schemes, labelling terms, and initiatives that assist farmers communicate about the qualities of product to consumers. The aim is to improve consumer information about the farming input to products and enable farmers and producers of first-stage processed goods to secure a fair price for their product characteristics and farming attributes.
Two legislative proposals, on “Quality schemes” and on “Marketing standards” are under scrutiny presently in the Council and the Parliament with a view to first reading soon in 2011.
Quality schemes
First is the so-called PDO quality foodstuff; there are presentlty 505 Protected Designations of Origin (PDO). These are the names of products that owe their characteristics exclusively or essentially to their place of production and the savoir faire of local producers. The agricultural product or foodstuff must have been produced, processed and prepared in a given geographical area using recognised know-how. The PDO sign looks the following way:
Second, are the goods with the protected geographical indications. There are 465 Protected Geographical indications (PGI): these are agricultural products and foodstuffs whose reputation or characteristics are closely linked to production in the geographical area. At least one of the stages of production, processing or preparation takes place in the area. First two – PDO and PGI are generally regarded as one scheme.
Third, there are 30 Traditional Specialities Guaranteed (TSG): product names that guarantee the traditional character, either in the composition or means of production. TSGs are not linked to any particular location, but must be produced in line with the specification laid down. The Commission also manages two registers for geographical indications of wines and spirit drinks.
Commission's opinion
"The one thousandth name registered is a significant milestone for the quality schemes. There is still great potential for these schemes that give visibility to Europe's quality products and valorise agricultural traditions and rural heritage. The EUs quality schemes are the cornerstone of the Commission's Quality Package currently in discussion in Parliament and Council. With this proposal we reinforce the PDO-PGI schemes in particular increasing the role and responsibilities of groups and breathe new life into the TSG scheme," – Dacian CIOLOS, Commissioner for Agriculture and Rural Development. (1)
EU Registers
Since 1992, the Commission, i.e. its DG AGRI has operated registers for agro-products and foodstuff:
• Register for protected designations of origin (PDO) and register for protected geographical indications (PGI);
• Register for traditional specialities guaranteed (TSG)
These registers contain names of agricultural products and foodstuffs, including cheese, hams, meat, fruit and vegetables, as well as olive oils, dairy products, beers, bakery products, spices, coffee, and condiments. Separate schemes operated by the Commission concern spirit drinks and wine names.
The names and scheme logos can only be used to describe authentic product corresponding to the specification laid down. In this way, the EU schemes identify and protect the names of quality agricultural products and foods.
The PDO (Protected Designation of Origin) is used for products with a strong link to the defined geographical area where they are produced; a PGI (Protected Geographical Indication) denotes products linked to a geographical area where at least one production step has taken place. The Traditional Specialities Guaranteed (TSG) scheme emphasises the product's traditional composition and traditional mode of production (2).
Italian cheese. The jubelee product nr ONE thousand was Piacentinu Ennese PDO, a cheese from the province of Enna in Sicily, Italy. The cheese is made from raw sheep's milk and saffron crocus (also from Enna), pepper and salt are used in its production. The sheep are grazed on uplands (between 400 and 800 meters above sea level) supplemented by fodder hay, straw and wheat stubble. The cheese owes its specificity to the use of saffron, the pastures and the savoir faire of the local producers (3).
The EU register keeps account of all 1000 registered names divided between schemes, countries and products. A study from the Commission showed that the PDO-PGI products had had a wholesale turnover of more than 14 billion euros in 2007 (4).
Table: Wholesale value of agricultural products and foodstuffs (excluding wines and spirit drinks; includes beers and other beverages) sold under PDO and PGI designations.
|
€ mln |
2005 |
2006 |
2007 |
2008 |
average |
|
Cheese |
5259 |
5258 |
5464 |
5625 |
5401 |
|
meat and meat products |
3431 |
3411 |
3573 |
3731 |
3537 |
|
Beer |
2301 |
2407 |
2361 |
2366 |
2359 |
|
fruit and vegetables |
770 |
764 |
900 |
870 |
826 |
|
bakery products |
749 |
726 |
738 |
742 |
739 |
|
fish products |
528 |
529 |
464 |
439 |
490 |
|
olive oil |
204 |
220 |
198 |
228 |
213 |
|
other products |
453 |
495 |
500 |
518 |
491 |
|
Total |
13695 |
13810 |
14197 |
14519 |
14055 |
Note: in bold are most popular quality products
The list of DG AGRI compiles 1000 entries
The ‘1000 PDOs-PGIs-TSGs' refers to 1000 separate entries in the PDO-PGI and TSG Registers. Some entries contain two or more versions of the name (for example where a national language and regional language are used to name the product). In addition, some entries refer to a range of distinct products. Each entry in the register, even if it comprises multiple names or covers multiple products, is counted as one.
The list of names does change over time: at the request of producers, some names are amended and some are cancelled. But overall the total number of register entries has continuously increased. The dates given (the ‘last reference date') are generated by the database. These are mostly the dates of registration, but later dates are used in case a name has been officially amended.
More registrations are expected
Further 16 names are ready for entry into the registers, the final step being translation of the registration regulations into the 22 EU official languages for publication in the Official Journal of the EU (which takes about two months). 3 names are at a similar stage, but for cancellation. Behind these, 60 names have been published for opposition and/or opposed. Some 70 new names are in examination, while 32 dossiers have been examined and the applicants asked to supply more information.
Further 77 amendment dossiers are following a similar path, but these will not result in the addition of a new name or cancellation of an entry.
Registered names' benefits
The scheme logos and registered names allow consumers to choose authentic and traditional product. The logos identify products linked to a territory and so help maintaining a market identity for that product.
Producers who rely on commodity production can find that buyers switch sources according to market price: but a product protected under a PDO, PGI or TSG cannot be produced using inferior ingredients and production methods without discontinuing use of the name. This will not prevent buyers from switching sources for product – but where a PDO, PGI or TSG has consumer recognition in the market, supermarket buyers will think twice before substituting for a cheaper brand.
A successful PDO, PGI or TSG with good market recognition can therefore create value, increase demand, avoid use of cheap raw material, secure local jobs and in a way can contribute to the development of agricultural and rural economy. The schemes help producers to obtain a premium price for quality products made according to tradition in specified places.
Quality Package for the PDO-PGI schemes
Given the success of the PDO-PGI scheme, the Quality Schemes Regulation proposal is designed to consolidate the scheme without changing its essential features. It remains an intellectual property protection scheme, focussed on names of farming product intrinsically linked with a geographical zone.
Changes that are proposed include: greater role for groups of farmers and producers to maintain standards and monitor use of the name in the marketplace; clarification of legal rights, especially in relation to trade marks, and shortening of the registration procedure (5).
Quality Package for the TSG scheme
With only 30 names registered since 1992, the TSG scheme has not reached its potential. The Quality Schemes Regulation proposal therefore proposes a radical overhaul of the scheme, in order to underpin the credibility of the scheme with consumers and focus the scheme on traditional recipes. The main elements proposed are to increase the period indicating ‘traditional practice' from 25 years to 50 years – i.e. before the industrialisation of agriculture; to require that both the ingredients and processing method are traditional; and to limit the scheme to processed product. It is also proposed to shorten procedures and limit the scheme to the protection of names (6).
Eugene ETERIS, European Correspondent, February 2011
References:
1. See: IP/11/154, Brussels, 15 February 2011.
2. For more information see:
as well as MEMO/11/84, Brussels, 15 February 2011.
3 . On Piacentinu Ennese PDO , see link in the Commission's DOOR on-line database:
4 . See:
5. See: DOOR database for registered PDOs, PGIs, and TSGs:
6. See: DG AGRI Quality Policy website:
and MEMO/11/84
№2(52), 2011