Eng translation presentation heifer on gi 23 08

1Kyiv, August 25th, 2011

Viktor Teres,

President, ICO “Community Wellbeing”

Project “ASSESSMENT OF POTENTIAL ORIGIN-LINKED QUALITY FOOD PRODUCTS AND THEIR

DEMAND IN UKRAINE”

Objectives of presentation

1. To show the topicality of GI food product certification in Ukraine

2. To discuss the results of the research “Assessment of potential origin-linked quality food products and their demand in Ukraine”

3. To reveal main differences between Ukrainian and EU law on regulation of GI product certification

4. To offer the next steps for improvement of state policies and wider implementation of GI food product certification in Ukraine

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1. TOPICALITY

Topicality of GI food product certification

1. Wide experience of European countries and partner organizations in registration of products with geographical indication; success in registration of such products as an instrument for development of rural territories

2. Legal framework (Law “On protection of the rights to geographical indication of goods”, quality standards of food products, protection of intellectual property rights)

3. WTO requirements to recognition of geographical indications in Ukraine and protection of producers’ rights

4. Availability of conclusions and recommendations of the pilot Project “Marketing research of supply and demand for food products, which can be potentially registered as those with geographical indication” – implemented by ICO “Community Wellbeing” (former name - Heifer-Ukraine) under the support of FAO TCP

1. TOPICALITY

Situation in Ukraine with GI product registration

• Law “On protection of the rights to indicate the origin of goods" was adopted in June, 1999

• The following qualified geographical indications of goods origin were registered: 8 mineral waters, 2 wines

• The system of state support is not perfect given the possibility of GI impact on the development of rural territories

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1. TOPICALITY

The task of protection of regional and traditional products: European experience

• Economic development of rural communities, increase in profits of rural producers, rise in employment of rural inhabitants in this area

• Meeting the expectations of consumers concerning the quality of food products, their distinctive geographical origin

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2. PROJECT RESULTS STAGES AND OBJECTIVES of the project of

Marketing research of supply and demand for food products, which can be potentially registered as those with geographical indication

(2010)

Determination of the most popular food products (except alcohol drinks), which reputation or qualities are related to certain locality

Survey of consumers in 9 regions of Ukraine and AR of Crimea

Compilation of list and preliminary database of the most popular food products, which have the largest potential for GI registration

Survey of producers of the most popular food products

Preparation of recommendations on the list of GI food products for pilot registration

Recommendations on improvement of state policy

2. PROJECT RESULTS

Regions of research

2. PROJECT RESULTS

Sections of questionnaire

Consumers

1. Determination of geographically-linked products

2. Awareness and interest of consumers

3. Information about consumer

Producers1. Product and its area of origin

2. Product in the market

3. Awareness of producers about the possibilities of registration

4. Information about producer/ association of producers

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2. PROJECT RESULTS

Results of consumer survey

• 1/2 of consumers prefer products from their locality• Importance of quality factor for 30% of consumers when making purchasing decision• 1/4 of consumers notice geographical references in the names of products• 2/3 of consumers pay attention to labels• Almost 60% want to see information about origin and specific origin-linked qualities on labels • 87% of consumers do not know anything about history and traditions related to products which have special value thanks to their origin

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• 17% of producers are ready to register the geographical origin of their products• Only 1% of producers is aware about the history of traditional products they

produce• More than 28% of traditional products are considered popular throughout the entire

country

• 30% of producers consider that specificity of regional products is mostly defined by natural conditions

• 50% of producers consider their products to be in high demand mostly due to their high quality

• 1/3 of producers consider the use of their geographical names by other producers to be a problem, which means that they need protection

Results of producer survey

2. PROJECT RESULTS

Criteria of product selection for the list

• Product properties which are perceived as traditional ones for a certain area and differentiate it from other products

• Reputation and popularity, consumers' and producers' opinion

• Boundaries of geographical origin • Traditional elements in production

technology• Reference to traditional product qualities

in old publications

2. PROJECT RESULTS

Criteria of product selection (continued)

• Product is positively associated with a specific area (region), its benefits (cultural and natural) and local communities

• Influence of natural conditions of the place of origin on product specific qualities

• Relationship of specific product qualities with a human factor of the place of origin

• There is a group of producers producing this product; or perspective of creating such a group

• Impact on one or several factors of regional economic development

2. PROJECT RESULTS

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Some of selected products, which can be registered and promoted as GI products

Product Place of production

Peculiarities

Yalta sweet onion

Yalta raion, Crimea

Local diversity; peculiarities of natural conditions

Kherson watermelon

Kherson oblast Local diversity; peculiarities of natural conditions

Rakhivska brynza

Zakarpatska oblast

Method of production, raw material (milk)

Doneshta fruit jam

Kamianka, Vinnytsia oblast

Local variety of apples; special method of production

2. PROJECT RESULTS

Profile card

1. Name

2. Type of product (variety, breed, dish etc)

3. General product description (specificity/ uniqueness, place of origin, method of production)

4. Linkage between the product and the area (specific local resources and the way they effect the product)

5. Impact on economic development potential of the region

6. Legal status of the product

7. Opportunities of producers’ collective actions (their number, presence of associations)

2. PROJECT RESULTS

Industrial scale products which can be potentially identified and registered as those with geographical

indication

Bread KvasPoltavskyi (recipe,

peculiarities of water

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Kyiv Cake(recipe and

date of production

since 1950)

2. PROJECT RESULTS

Products, which can be referred to traditional dishes

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KolotukhaMalai

Komarovetskyi

Doneshta fruit jam

2. PROJECT RESULTS

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GI products for smallholders

• Additional profit from increase in demand for such products or rise of price level for products with GI certificates

• Additional workplaces

• Development of skills

• Protection of rights and interests of small agricultural producers (smallholders, farmers, etc)

• Contribution to development of agrotourism and popularization of regions

• Can be successfully promoted through associations of producers (for example, agricultural service cooperatives), which can provide services in processing, packaging, marketing of unique regional products

Development of rural territories

2. PROJECT RESULTS

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• Successful examples of revival/development of local products, based on historical traditions/ established practices

• Some rural communities have resources for start of production, including, thanks to ICO “Community Wellbeing”: large cattle, pastures, equipment etc.

Example. Nyzhnie Selyshche village, Hustiv raion, Zakarpatska oblast - products:

• Selyskyi Cheese (brynza), Hustiv Cheese, cheese “Carpathian Daffodil” (cheese production line)

• Selyskyi bread, made in wood burning stove • Selyska salami • Promotional activities: ethnic festival “Selyska

spivanka (song)”

Local opportunities for development of production with geographical indication

2. PROJECT RESULTS

3. Differences between Ukrainian and EU law

The key differences in registration procedures in Ukraine in comparison with EU law

• Possibility for one person to apply for registration in Ukraine. Certification for producer, not for the region

• Requirements for prior examination (expert review) of application by a specifically designated state body. This body shall provide its conclusion to be attached to the application package

• The procedure of registration in Ukraine does not take into account the need to develop a code of practice (special procedures of cultivation, production/ processing and other production processes) for a certain origin-linked product

• Provision of powers by the state to the associations of producers to control the compliance with production standards

• There is no clear difference between the description of specifications and the description of reputation

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Factors contributing to development of GI products

4. NEXT STEPS

•The system of control for national quality

standards is developed;

•State Department of Intellectual Property in Ukraine is

entitled to certify GI products;

•Active role of local producers, their associations;

which creates opportunities for common actions and

development of rural territories

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Some barriers on the way to improvement of institutional conditions for development of GI products in

Ukraine and ways of their overcoming Limiting factors for development of

production of GI productsSolutions

Concept of GI products is new for Ukraine – low awareness of small farmers

Informational campaign; training for authorities and producers. Involvement of licensed non-government representatives for registration of GI products

Lack of supply chains for high-quality traditional products

Associations of produces. Joint promotion. Organization of special promotion activities (fairs, festivals etc)

Low awareness of consumers about local traditional Ukrainian products

Informational campaigns for consumers

Lack of experience in Ukraine of registration of GI food products (except mineral waters)

Pilot registration of selected products, manufactured by small producers, in the framework of new project of technical cooperation

High cost of product promotion Associations of producers, including agricultural service cooperatives and other rural unions. Joint promotion.

4. NEXT STEPS

Directions of development and additional recommendations

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1. To provide establishment of national and regional structures (not only state ones) in Ukraine which would promote development of products with protected geographical names

2. Improvement and harmonization of legal and regulatory framework for protection of geographical indications in accordance with legislation of European Union

3. Development of the system of goods specification (in particular, codes of practice, protocols developed by producers)

4. Elaboration of state development program for products with protected geographical names as one of the components of rise in potential of rural local communities and increase in profitability of agricultural production

4. NEXT STEPS

Thank you for your attention!Viktor Teres

[email protected]

President

ICO “COMMUNITY WELLBEING"

Vasylkivska str. 14, Floor 7, Office №720

Kyiv 03040 Ukraine