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EU Geographical Indications represent a sales value of €74.76 billion

On April 20th 2020, the European Commission published the “Study on the economic value of EU quality schemes, geographical indications (GIs) and traditional specialties guaranteed (TSGs)” in order to update and expand the previous study realised in 2012 (find the previous study here).

These labels have an important presence in mountain areas, it is estimated, for example, that around 1/3 of the EU PDOs are produced in mountain areas. The report published this week also states that there were “45 French cheeses under PDO. The main ones are Beaufort, Cantal, Comté, Reblochon, Roquefort and Saint-Nectaire. Each of these PDOs is produced in mountain areas. In such cases, PDO is a strategy of differentiation where productivity is hampered by the geographical environment.”

AREPO, the association of European regions of origin products, has synthesised the Commission’s latest report. You will find their analysis below.

It is a comprehensive and in-depth analysis based on all 3,207 GIs and TSG protected across the 28 EU Member States at the end of 2017. Out of these 3,207 product names, 49% were wines, 43% agri-food products and 8% spirits drinks.

According to the study, there is a clear economic benefit for producers in terms of marketing and increase of sales thanks to high quality and reputation of these products, and willingness of consumers to pay to get the authentic product. In particular, the main findings of the study are the following:

Significant sales value:

  • GIs and TSGs all together accounted for an estimated sales value of €77.15 billion in 2017, 7% of the total sales value of the European food and drink sector estimated at €1,101 billion in 2017;
  • GIs for agri-food and drink products considered alone represented a sales value of €74.76 billion;
  • Wines represented more than half of the sale value (€39.4 billion), agricultural products and foodstuffs 35% (€27.34 billion), and spirit drinks 13% (€10.35 billion);

Higher sales premium for protected products:

  • The sales value of the products covered by the study was on average double than the sales value for similar products without a certification;
  • The value premium rate stood at 2.85 for wines, 2.52 for spirits and 1.5 for agricultural products and foodstuffs.

Exports of geographical indications:

  • Geographical indications represent 15.5% of the total EU agri-food exports;
  • Wines remained the most important product both in terms of total sales value (51%) and extra-EU trade (50%);
  • Agricultural products and foodstuffs represented 35% of the total sales value and 10% of extra-EU trade;
  • The U.S., China and Singapore are the first destinations for EU GI products, accounting for half of the export value of GI products.

Commissioner for Agriculture, Janusz Wojciechowski, said: “European Geographical Indications reflect the wealth and diversity of products that our agricultural sector has to offer. Producers’ benefits are clear. They can sell products at a higher value, to consumers looking for authentic regional products. GIs are a key aspect of our trade agreements. By protecting products across the globe, we prevent fraudulent use of product names and we preserve the good reputation of European agri-food and drink products. Geographical Indications protect local value at global level.”

For more information on products of origin and quality policy in the EU, please visit the AREPO website.

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23 April 2020

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