Linked to the Land

Developing Irelands Local and Regional food and drinks

Foreword

Linked to the Land - Developing Irelands Local and Regional food and drinks

Bord Bia and industry should make the optimal use of Irelands protected Geographical 2020, page 35 ) Indications, and to identifying further designations. Ireland has (Food Harvest not exploited this opportunity to any significant effect to date .

Europe has a long tradition of food and drink being linked to particular geographical regions. A system for registering geographical indications is provided by Council Regulations (EC) No 509/2006 and 510/2006 under the Common Agricultural Policy. To date four Irish products have received such status.

This paper sets out the main issues in securing GIs, examines Irelands position to date and the potential for registering more products as PDO, PGI or TSG in Ireland. The paper is in two parts; Part I is an examination of the main policy issues and Part II, a proposal for action to develop more Irish GIs in furtherance of the objective in the Food Harvest 2020 report.

Food Industry Development Division

August 2012

Table of Contents

Foreword ............................................................................................................................................... II PART IExamination of Policy Issues ................................................................................................. 1 1.1 1.2 The Scheme of Geographical Indications ......................................................................... 2 The Value of having a Geographical Indication ............................................................... 4

Producers....................................................................................................................................... 4 Consumers..................................................................................................................................... 4 Other Stakeholders ...................................................................................................................... 6 1.3 Critical issues for GI Production ........................................................................................ 7

Balancing costs ............................................................................................................................... 7 Building the Group and Establishing the Link ................................................................................ 7 1.4 Experience to date in Ireland ............................................................................................. 8

PART II POTENTIAL FUTURE DEVELOPMENT OF THE SCHEME IN IRELAND.............. 10 2.1 2.2 2.3 2.4 Food Harvest 2020 (FH2020) ......................................................................................... 11 Discussions on GI Potential .............................................................................................. 12 Recommendations ............................................................................................................. 12 Key Stakeholders ................................................................................................................ 13

DAFM ........................................................................................................................................... 13 Bord Bia ....................................................................................................................................... 14 TASTE Council............................................................................................................................ 14 Teagasc......................................................................................................................................... 15 BIM............................................................................................................................................... 15 Marine Institute (MI) / Seafisheries Protection Agency (SFPA) ......................................... 15 2.5 Priority Actions to be undertaken .................................................................................... 17

Annex A ............................................................................................................................................... 20

1.PART I Examination of Policy Issues

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1.1 The Scheme of Geographical Indications

Within the European agricultural system different regions have over generations produced cheese, wine and other products in a way that is unique and traditional to a locality. The Common Agricultural Policy protects such products through Geographical Indications, which recognises food that is linked to a geographical region, by reason of reputation, local ingredients or production methods, and highlights this through an EU labelling system and logo mark products for consumers. GI food products, including beer and wine but excluding spirits 1, represent 2.5% of the consumer value of European food consumption and have an estimated value of 14.2 billion (2007).

Agricultural products, drinks and foodstuffs can apply for GI status where a clear link exists between the characteristics of a product or foodstuff and the defined geographical area. The products need not be unique, but the characteristics of the region- topographic, savoir-faire, reputation, and natural resources- must have an impact on the characteristics of the product.

Geographical Indications are a type of intellectual property. PDO, PGI and TSG designations, linked to a region or to a production method, are protected from imitation and misuse of the name. The EU logo and recognition that these are quality products may assist products to command a price premium. GI producers must maintain the quality of the product, comply with scheme specifications and meet control requirements.

Although GIs are associated with artisan production, both artisan and more industrial producers may be eligible. Under the GI process, producers apply for registration of their standard methods, recipes and characteristics. In practice, this is
1

GIs for spirits are regulated by Regulation (EC) No 110/2008 of the European Parliament and the Council

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a group endeavour with trade associations and farmer groups putting forward an application. However it is important to note that any producer, within the defined geographic area, who meets the specifications, can avail of the GI, even if not a member of the applicant group.

There are three types of Geographical Indicators;

Protected Designation of Origin (PDO) where the product must be produced, processed and prepared in the geographical area and where the quality or characteristics are essentially due to that area.

Protected Geographical Indication (PGI) where the product must be produced or processed or prepared in the geographical area and where a specific quality reputation or other characteristics are attributable to that area

Traditional Speciality Guaranteed (TSG) where the product must be traditional (25 years/handed down through generations) or established by custom.

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1.2 The Value of having a Geographical Indication

In 2011 the European Court of Auditors reported on the operation of the geographical indication scheme (2011). They found that the schemes have potential to be a positive economic opportunity for the agriculture and fisheries sectors but that lack of consumer awareness limits their impact. They recommended that a clear strategy of promotion should be organised by the Commission. Noting the report, Council recognised that lengthy procedures and a lack of awareness were affecting the potential of the GI scheme and asked the EU Commission, in agreement with Member States, to develop a strategy on awareness.

Producers There is growing enthusiasm among consumers for high quality food with a clear local identity. Consumers want to know how food is produced and they want to support local producers. Producers can add value and potentially secure a better price by linking GI products with this consumer demand. For producers the main benefit to consider is the potential to negotiate a better price. However the added value of a PDO/PGI label may not be realised without investment in a campaign of increasing public awareness and understanding of these products.2 GIs can open market opportunities for producers to access specialised markets where competition can be on aspects other than simply price. Internationally, in trade negotiations between the European Union and other countries over Free Trade agreements, the EU regularly seeks recognition and protection of the GI System.

Consumers For consumers GI markings and labels are information mechanisms designed to offer a guarantee of consistent quality and thereby encourage consumers to select these products. There is evidence that some consumers value the food quality

F Chaddad, C Fischer, M Hartmann CAB International 2010 Agri food Chain Relationships

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attribute of GIs but this has to be balanced against the fact that there is very low recognition of GI s marks in Ireland and indeed in other European Countries also. GIs are not the only quality mark or certification for consumers to be aware of and there can be confusion over the meaning of different logos. There may also be cases where consumers already have an attachment to a well know brand/mark or type of product (e.g. Camembert Cheese) and consumers may not perceive the use of GI markings to add anything of additional value in these cases.

Irish Consumers are traditionally brand conscious and associate brands as an important symbol of quality assurance3. In Ireland consumers are more likely to be aware of a brand name of a particular farmhouse cheese rather than to know about its specific links to the region. Whilst in Europe buying local can mean supporting a tradition of regional food, in Ireland this may translate into a broader notion of buying products from the locality/county or Irish products. Products marketed in Ireland often promote broad concepts such as clean green rural nature rather than specific regional qualities.4

M Cawley, P Commins, S Gaffey, D Gillmor, M Henchion, P McDonagh, B McIntyre The Irish Finding of FAIR3CT96-p 1827 project
4

M Henchion B McIntyre British Food Journal Volume 102 Number 8 2000

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Other Stakeholders The specific regional qualities of GIs, which are unique and built up over time, mean that they illustrate, in a very particular way, the essence of a region and a countrys food tradition. Having a number of GIs in a country and having GIs which represent substantial production can enhance national recognition.

GIs may be primarily an opportunity for producers but their benefits can be broader in a rural and coastal areas. Regional growth strategies can build on local GIs to develop tourist trails, food festivals etc. In this way the benefits of GI registrations pass outwards to a broader group.5 However strong primary interest from producers would first be needed to develop them.

Another issue for consideration is the potential jobs aspect. There is evidence that GI production can have higher employment levels, which is usually due to type of traditional production techniques used. This also applies to artisan products in general. Furthermore while technologically efficient producers will have best potential to succeed in global competitive markets, GIs offers other niche market opportunities for smaller producers.

A tregear, F Arfini G Belletti A Marescotti Journal of Rural Studies 23 2007

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1.3 Critical issues for GI Production

Balancing costs There are cost implications with setting up a GI. As inputs can only come from a certain area this could increase the cost of production or limit expansion potential. GI producers may benefit from a higher price but this is not always achieved and any premium has to be able to compensate for any possible additional costs.

Building the Group and Establishing the Link A significant issue for successful registration and maintenance of a GI is the nature of the producers who have come together to make the application. GIs reward collective traditions rather than any one entrepreneurs vision. This aspect of the collective is more routed in Southern European agriculture and it can be a challenge to achieve in some Member States. A group of individuals have to enter into a joint process to gain recognition of a collective intellectual property. Producers need to work out issues of cooperation and competition, economic and non-economic values. PDO PGI production may be based on local production methods and ingredients but the group must also be able to achieve commercial performance to survive.

Because of the need to have a functioning group, Governments cannot impose GI initiatives, even if they see potential that producers do not. 6 However although the idea of the group is central, models of coordination can vary from tight developed coordination to a looser model. Where no organisation exists, building one can be a complex and challenging task. A strong group is more likely to have the shared viewpoint necessary to sustain production and develop commercial opportunities over the long term. A further challenge can arise for groups, as GI production is not limited to members of the original group but is open to anyone within the delineated territory who meets the specification.
6

S Reviron, JM Chappuis CAB International 2011 Labels of Origin for Food.

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1.4 Experience to date in Ireland

Ireland currently has four approved GI food products (Clare Island Salmon, Imokilly Regato, Timoleague Brown Pudding and Connemara Lamb). A further application (Waterford Blaa/Blaa) has recently been registered with the European Commission and a national consultation has been started for an all island application for Irish farmed salmon.

The Department of Agriculture, Food and the Marine is the Competent Authority for the EU Quality Products Scheme of Geographic Indications. develop their applications and receive registrations. The Department welcomes new applications for quality products, and will work with producers to

There are aspects of the GI system which do not fit well with the Irish food tradition. The concept of a regional link for quality food production, as opposed to quality assurance schemes, is not clearly understood. Food development and innovation in Ireland more often illustrates a tradition of individual innovation. Individual producers may not usually apply for a Geographic Indication for their products. Nor may the name of a Member State (e.g. Ireland ) be used except in exceptional circumstances.

The experience to date is that there is a variety of reasons for difficulty in progressing potential Irish GI applicants. The length of the process is off putting. A group structure is required and this may either not exist at all or be too loose a structure for the purpose of maintaining a GI registration. Producers may not wish to commit to the control and maintenance of a GI in the absence of certainty of a price premium. They may have developed an existing brand and have no desire to share this intellectual property with all producers in a region. Furthermore, as the added value of a GI mark is often realised only for exports to other EU countries where they may

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be more recognised, smaller producers without significant exports may not see any need for GI registration.

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2PART II POTENTIAL FUTURE DEVELOPMENT OF THE SCHEME IN IRELAND

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2.1 Food Harvest 2020 (FH2020)

Food Harvest 2020, published in 2010, sets out an ambitious vision for the future strategic development of the Irish agrifood and seafood industries based on three principles: acting SMART; thinking GREEN; and achieving GROWTH. This vision acknowledges that Ireland needs to address structural challenges to meet the international competitive challenges. Resources must be focused on the opportunity presented by consumers who demand the highest quality in production and environmental standards, expect clear visibility on sustainability issues and, crucially, may be willing to pay a premium for this. Food Harvest 2020 supports the development of a dynamic, consumer-responsive sector, which can achieve sustainable growth despite the challenges of volatility in input costs and world food prices. FH2020 brings a policy imperative to the greater development of the GI sector in Ireland. It also emphasises that speciality claims to consumers must be evidence based and backed up by systems to guarantee these claims to consumers. As part of developing greater competitiveness FH2020 calls for Encouragement of an entrepreneurial approach to the development of high potential start-up food businesses and dynamic artisan producers and that Bord Bia and industry should make the optimal use of Irelands protected Geographical Indications, and to identifying further designations. Ireland has not exploited this opportunity to any significant extent to date.

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2.2 Discussions on GI Potential

In late 2011 Food Industry Development Division attended a Taste Council meeting to hear their views on GI potential in Ireland and presented the concept of seeking diverse GI applications which would have substantial commercial potential and/or niche value which could benefit the local food tourism economy. Further discussions took place in May 2012. Since January 2012 discussions on developing a plan to encourage more GI applications have taken place between Food Industry Development Division, Bord Bia, BIM and Teagasc. It has become clear that there is a shared consensus that potential exists for further GI approvals and that stakeholders are willing to work together to achieve this. It is also considered that a cross-agency approach focused on collaboration and a specific programme of actions is a necessary ingredient for a substantial increase in GIs and in the light of limited public resources. This process should ensure clarity of roles and responsibility to maintain efficiencies.

Discussions at EU level have progressed agreement on an overall EU Quality policy. This will result in new regulations and changes to the existing GI schemes which must then be implemented in Ireland. These revised regulations may offer new opportunities to Irish producers.

2.3 Recommendations
It is recommended that a small GI development group be set up by the Department of Agriculture, Food and the Marine to develop and encourage applications and to consider policy issues regarding the operation of the GI scheme in Ireland. This group should initially comprise representatives of DAFM, Bord Bia, BIM and Teagasc. The Committees role will be to develop greater awareness of the potential of GI registration, to encourage applications through specific actions and to work with producers to ensure registration. Implementation Committee. The Committee should report quarterly through the Head of Food Industry Development Division to the Food Harvest 2020

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Bord Bia will have responsibility for liason with the Taste Council. Although the GI Committee is intended to meet the obligations of public bodies under FH2020, the Taste Council has a significant role to play in developing GIs in Ireland. The Taste Council acts in a voluntary capacity to raise issues particularly affecting the speciality food sector. Because of their knowledge of artisan, local and regional products and producers and food traditions the Taste Council has a particular role in highlighting potential products and directly liasing with producers to bring GI opportunities to their attention and to raise these possibilities with DAFM. In view of this considerable role DAFM should meet at least annually with the Taste Council to seek their views on GI matters and to report to them on the work of the Committee.

The Committee should encourage Irish GIs based on robust applications, supported by strong evidence and backed by committed producers with the ability to undertake long term production. Consumers need to be assured that the quality promise is backed up by solid assurances.

2.4 Key Stakeholders

DAFM The Department of Agriculture, Food and the Marine is the lead Department for policy regarding GIs, nationally and at EU level and is the competent authority for submitting applications to the European Union and for ensuring effective and appropriate assurance/control mechanisms. DAFM also has a vital role in advising producers and working with them on the application as it moves through the different stages of approval. DAFM should Chair a cross-agency PDO/PGI/TSG Committee and encourage greater development of the sector. In initial discussions the other agencies have indicated support and willingness to work together on developing GIs.

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Bord Bia Bord Bia has a key role based on its existing responsibilities for market development, promotion and information services for the agri-food industry. Bord Bia will work with DAFM and other actors to provide information on PDO/PGI/TSG programme and application process to food producers, advising and mentoring producers in application stages. They will inform food producers of any open call made by DAFM for PDO/PGI/TSG applicants and give briefings to food producers interested in applying for PDO/PGI/TSG status. These could initially be included as part of Regional Forums which in 2012 will take place in Athlone (21 May) and Cork/Kerry (Autumn). Bord Bia will also have an important role to play for PDO/PGI recipients, in providing access to the range of Bord Bia services (i.e. market information, business development and promotion) to assist in maximising their competitive advantage in the marketplace. The Bord Bia Quality Audit programme may also have a possible role as part of assurance systems. Bord Bia will promote PDO recipients to trade buyers in priority export markets. In their role as Secretariat for the Taste Council Bord Bia will liaise with Taste Council regarding PDO/PGI/TSG developments.

TASTE Council The Taste Council has a particular role in linking artisan producers with the GI schemes. Because of their knowledge of artisan, local and regional products and producers and food traditions, the Taste Council has a particular role in highlighting potential products and directly liaising with producers to bring GI opportunities to their attention and to raise these possibilities with DAFM. DAFM will meet annually with the Taste Council to seek their views on GI matters and to report to them on the work of the GI Committee. The Taste Council could also have a role, in view of their knowledge and understanding of food heritage, of developing a database of historical food names which would be a resource for future applicants.

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Teagasc Teagasc regularly receives queries on GI schemes. Teagasc has an important role to play due to its particular expertise, which is critical to applicants, in the essential requirement to demonstrate the link between the geographical area (soil type structure/climate/vegetation etc) and the product. Teagasc, through its ongoing advice work and discussion groups, could also have a role to play in supporting the development of producer groups to enable them to come together to work on applications.

BIM BIM has a key role based on its existing position as the agency with responsibilities for development of the Irish Seafood Industry. BIM expertise on seafood products and industry concerns will be an important asset in developing successful applications in this sector. BIM should in conjunction with DAFM, provide information on PDO/PGI/TSG programme and application process to food producers, advising and mentoring producers in application stages and afterwards on how to maximise benefits of achieving PDO status. BIM will act as a conduit for information to producers informing them of any open call made by DAFM for PDO/PGI/TSG applicants and for successful PDO/PGI recipients they will provide access to the range of BIM services (i.e. market information, business development and technical support) to assist in maximising their competitive advantage in the marketplace.

Marine Institute (MI) / Seafisheries Protection Agency (SFPA) Both the Marine Institute and the Seafisheries Protection Agency have important technical expertise and may have a valuable role to play in research and advice to support the demonstration of geographical links in seafood applications and in advice on control issues. BIM will liaise with these agencies.

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2.5 Priority Actions to be undertaken

Set up GI Committee to operate as a flexible, proactive group. Set up Committee by end September with representation from DAFM, Bord Bia, BIM and Teagasc.

Encouraging awareness of the GI schemes

Agree on proactive approach to promoting the potential of GI status among producers i) Suggest GI status to existing groups that could demonstrate the Link between their product characteristics and the geographical area ii) Organise two events during 2012 to promote the schemes generally. These events should inform producers about the schemes and include input from GI producers. They should be held in conjunction with Bord Bia/ DAFM Regional Food Showcases. The first event will be held in May in Athlone and a second event should be held later in the year.

iii) DAFM, Bord Bia, BIM, Teagasc and the Taste Council should review their website material on GI schemes to ensure that transparent information with clear links is provided. Seek out applicants - Review previous applicants Each stakeholder agency should review and reassess any applications submitted within the last two years to assess current potential. This should include advising producers in the Timoleague area of the possibility of availing of the GI status for brown pudding.

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Work with applicants to encourage successful applications.

i)Applicants will need advice and support, initially in terms of advice regarding the process and compilation of the application. DAFM and agencies all have a role to play. ii)Support is needed on how to develop the proof of the regional/local link between the product and the geographical area. Agencies, in particular Teagasc, Marine Institute Seafisheries Protection Agency, should work together to provide appropriate advice and support for applicants on this.

New GI Regulations

The new GI regulations will introduce changes into the schemes. The implementation of these changes and their affect on GI production in Ireland needs to be considered. It will be necessary to revise information material and inform all stakeholders of any new requirements

TSG scheme

Currently there are no Irish TSG registrations. Stakeholders will examine the possibility of developing TSG applicants, bearing in mind possible changes in the system being considered at EU level.

Funding

There is no ring fenced funding for GI applicants. However there may be potential existing sources of funding which could be used to support the process of GI applications e.g. Leader funding. All possible sources of funding could be examined and any suitable sources should be identified to applicants.

Assurance Systems

When producers apply for GI status they are requesting to become part of a system which entails necessary controls to ensure that the promise made to consumers regarding the products is met. DAFM is the competent authority and currently operates the controls for the existing GI production. As GI registrations expand DAFM should work with other

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agencies to continue to ensure an effective control system, which supports the GI system, enables the authentication of producers claims and operates in the most efficient manner.

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3 Annex A
Application Process

There is a common application procedure across Member States in the form of a specification document and a common single document (Annex 1 of EC Reg. 510/2006) to be completed by the producer group (applicant). These documents outline the region, the product and the link between the region and the product, i.e. how the characteristics of the region impact on the product itself. The group of producers must make application to Food Industry Development Division. The Department assesses whether the application fulfils the criteria and, if satisfied, publishes it on the Department website for a consultation period (8 weeks), considers any submissions and if appropriate, forwards the application European Commission (DGAGRI).

Within 12 months the Commission examines the application on specific grounds and if they are satisfied that it is justified make the new application available on its Door database http://ec.europa.eu/agriculture/quality/door/list.html. Following a further period of investigation and consultation, the Commission accepts or rejects the application (at least 6 months). If accepted the product is registered on the Commission database and is required to be labelled with a PGI/PDO/TSG logo.

Full schematic details are set out overleaf:

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At producer level

Definitions of the product according to precise specifications

At national level

Analysis by national authorities

At European level

Entered on Door Database Examination by commission Services

Rejection if application is not complying with EU legislation

First publication in the Official Journal

6-month opposition period

If opposition, appropriate consultation between interested parties

Registration

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Different categories of status that can be applied for

i) ii) Linked to a particular territory or Relating to a particular production method

i) Protection of Geographical Indications and Designations of Origin

ii) Traditional Speciality Guaranteed Regulation

Product must be produced and processed and prepared in the geographical area (PDO)

Product must be produced or processed or prepared in the geographical area (PGI)

Name must be specific in itself or express the specific character of the foodstuff (TSG)

Quality or characteristics essentially due to that area

Specific quality, reputation or other characteristics attributable to that area

Must be traditional or established by custom. Distinguishing features of the product must not be due to the geographical area where it is produced. Not entirely based on technical advances in the method of production.

PDO means a name of a region, an area or even a country in exceptional cases

The geographical link is not a core attribute but production must take place in a defined geographic area

Traditional means usage for a minimum of 25 years showing techniques handed down between generations

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