Great news is on the horizon for PDO and PGI products. The new EU regulation strengthens the power of the protection consortia, counters devaluing practices, promotes geographical indication tourism, and combats counterfeiting. There remains a whole audience of consumers to educate, but that is the next step.
PDO and PGI, let’s clarify immediately. The former is a label that identifies foods produced, processed, and prepared in a specific geographical area, using traditional methods and following strict production protocols. This label guarantees the genuineness and authenticity of the product, protecting its name and preventing imitations or counterfeits. Some examples of PDO products are Parmigiano Reggiano, Prosciutto di Parma, and Chianti.
PGI, on the other hand, is a label that identifies foods closely associated with a specific geographical area and that possess quality characteristics or reputation attributable to that region. Even if the production of the product in the specific geographical area is not required, at least one important phase of its production, transformation, or preparation must be carried out there. PGI protects the name of the product and promotes the distinctive characteristics linked to its geographical origin. Some examples of PGI products are Prosciutto di San Daniele, San Marzano Tomatoes, and Sorrento Lemons.
These two labels are closely tied to the territory, currently experiencing an interesting phase of evolution. With the signing of the new EU regulation on Geographical Indications, new tools will soon be made available to farmers and producers of PDO and PGI food products, wines, and alcoholic beverages, making them even more competitive and protected.
The PDO and PGI sector is a key part of the European agri-food economy, which includes about 3,500 registered products, generating a turnover of 80 billion euros.
For Italy, in particular, the reform is of great significance, considering that the 880 PDOs and PGIs here generate a turnover of 20 billion euros, a quarter of the total. And half of these products are sold on international markets.
For Italy, thirty years of investment and agricultural policy reforms have led to the creation of a true quality policy, crucial in making the agri-food chain unmatched worldwide in terms of food quality and productive sustainability. This, also thanks to a unique model of protection, management, and promotion of products synonymous with excellence, uniqueness, and connection to the territory.
The PDO and PGI system, launched by Brussels in 1992 with quality food products considered niche, has developed over time to become a pillar of the European agri-food economy, with significant impacts on the territories of origin of the products. According to the 2023 Ismea Qualivita Report on PDO and PGI, in Italy alone, the “PDO economy” boasts 296 protection consortia, 195,000 businesses, and more than 890,000 employees, of which 580,000 are in agriculture and 310,000 in industrial processing.
What’s New?
The new rules that came into effect in the first half of April will evolve the system to make it unmatched worldwide, all without foreseeing public resources. Among the innovations are the strengthening of the powers of the protection consortia, the fight against devaluing practices, the promotion of geographical indication tourism, and strengthened protection from counterfeiting at an international level, online, and in the internet domain system.
This not only applies to pro ducts per se but also when PDO and PGI products are used as ingredients in other food products. Simplification will play a key role, while requests for new registrations or modifications of production standards must be processed in less than a year.
Additionally, the new regulation intends to clarify cases of evocation. We will no longer see cheeses named Cambozola, Parmesan, or Zottarella, or products like Croatian Prosek or Slovenian Balsamic Vinegar. It goes without saying that the regulation has been met with great satisfaction by the productive world and industry organizations.
Informing the Consumer
The next, extremely important step involves correctly informing the consumer, who today, thirty years after these denominations entered the market, still appears rather confused. This is demonstrated by a study from the Luiss business school in Rome, in collaboration with Amazon.
The survey, conducted with 1,600 Italians, highlights that while the PDO and PGI denominations are known to almost all consumers (96% are familiar with at least one) and the vast majority (90%) understand the “technical meaning”, just over half recognize the origin in a specific territory as a distinctive feature, and for about a third, the differentiating element is represented by superior quality.
Moreover, the perception of other possible characterizing aspects of these goods, such as better nutritional content, lower environmental impact of the production process, but also a higher cost, is not very widespread.
According to the research, just 28% of respondents state they pay close attention to the PDO/PGI labels during purchase, a percentage that increases to 32% during consumption. Although only 17% consider the origin labels to be of little or no relevance, the majority of those who define themselves as less sensitive end up buying this type of food.
And yet, despite 35% of respondents recognizing these goods as premium positioned, the actual willingness to pay is significantly lower: only 11% of the sample is prepared to pay 15% more, while about 30% state they would not accept a price difference exceeding 5 points. In summary, a chiaroscuro and often contradictory picture emerges, highlighting the need for deep cultural actions.
“In order for the distinctive character of the denominations to be clearer and more recognizable, even abroad – warns the research – it is necessary to work, stimulating the spread of greater awareness of the value and specificities and to persist in the defense from counterfeiting. The collaboration between the public and private sectors undoubtedly represents the starting point for achieving these objectives.”
The Next Steps for the Sector
Made in Italy is synonymous with quality, safety, and reliability. Our country has the highest number of agrifood products recognized by the European Union as origin-denominated or geographically indicated protected.
This leadership must be communicated and, simultaneously, defended. According to recent estimates, the counterfeit agri-food market is even worth 120 billion euros. Quality food must increasingly be tied to the territory, to the hands and wisdom of local farmers.
The PDO and PGI origin labels can be tools for a relaunch, but too often products with this denomination are seen only as gourmet specialties. A contradiction, considering that many of these foods and products arise from rural everyday life. One of the next goals of Italian agriculture will therefore be to bring agricultural territoriality closer to consumers, debunking also the myths. A challenge that, thanks to the new regulations, can finally be met.
