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The benefits for consumers, producers and local communities

published 18 March 2019 12:33

Benefits for consumers

The consumers who are buying a product with a geographical indication (GI) receive a guaranteed quality with specific regional characteristics. The geographical indication confirms the following advantages of this product:

Quality

The guarantee of the highest quality of products with GI is ensured by three levels of control:  

  • the manufacturer itself guarantees the quality of its products through     compliance with the specifications;
  • quality control by the producer association;
  • quality control by an external independent certification body.

Counterfeit Protection

GIs inform about the place of origin of the product: where it was invented and is have been produced to date using a traditional technology. All registered GI products are listed in the national and European registries, this information is public and consumers can check it independently.

Naturalness and authenticity 

Products with GI are made from natural ingredients without addition of GMOs and synthetic impurities. Very often, products with GI are at the same time organic products.

Link with cultural heritage

Products from GI are not just food, it is part of the culinary heritage of one or another people. For consumers, and especially tourists, it's an opportunity to feel the culture to taste. Often, products with GI are a kind of tasty souvenir. In addition, GI products are gourmet products.

Benefits for manufacturers

Producers with the GI can effectively protect their rights and increase the sales market, because GI registering for a product gives manufacturers the following advantages:

Confirms the high quality and safety of their products, its uniqueness and tradition.

Products with protected GI belong to the premium segment. Thus, due to GI, manufacturers can differentiate their product among similar ones on the market and win consumer confidence.

It forms collective intellectual property, protecting the product from counterfeiting and allowing the association of producers to share the benefits of the value added product.

This right is protected by international agreements, European and Ukrainian legislation. Management of this intellectual property right belongs to the association of producers of the product concerned. In other words, no manufacturer that is outside the geographic area identified in the product specification has the right to use the registered product name. Moreover, such manufacturers are prohibited to indicate on the packaging inscriptions «in style», «type», «method», «as produced in», «imitation», «with taste and aroma», «similar to» or «similar to» the name of the registered GI.

Allows you to keep the traditional production technology

After all, it is traditional technology that forms the basis of the specification, and all manufacturers who want to use GI are obliged to comply with it.

Attracts tourists

Products with GI is an element of the culinary heritage of the people and a kind of tasty souvenir. That is why it is interesting for tourists to visit the places of production of these special products and taste the culture of the locals.

It helps to increase sales and reach new markets outside the production area

Thanks to quality control and product certification, consumer confidence is growing, who are willing to pay more for safe, high-quality, natural and traditional products.

All of the above factors ultimately motivate the consumers to buy products with GI and pay more than they pay for similar products of industrial production, and the producers – to earn more.

Benefits for rural areas (local communities) 

The registration of the GI not only opens new trading opportunities for producers, but also helps to preserve local traditions, increases the tourist attractiveness of rural areas and promotes their development.

On the one hand, the production of products with GI helps to preserve traditional fishing as an economic expression of the identity of a particular territory. That is, by promoting the production of authentic quality products, GI at the same time contribute to maintaining the authenticity of production processes and employment of the local population.

At the same time, the success of products from GI promotes the development of related areas: ethno gastronomic tourism, souvenir production, restaurant and hotel business that contribute to the growth of employment of local people and the increase in profits for both local business and local budgets.