Master Dizertatie Finala2

8/6/2019 Master Dizertatie Finala2

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CHAPTER I

1.1 INTRODUCTION

The choice between sectorial development and territorial development is a major bet

which the farmers have to face. The dominant alimentary model the agro-industrial model

answers to a nutritional demand that is constantly increasing, but which is in a way defective in

guaranteeing the prosperity of the society and in conserving the natural resources. Influenced by

those who exit the local or national territory (for example the agricultural raw materials), the

farmers change their dwelling place or leave, entailing in this way the lost of the identity of the

rural areas, the alteration of the natural resources and sometimes a social and economic decline.

In Europe, and more precisely in the Mediterranean area, the terroir strategies are capable

of assuring a balance between the territorial and the sectorial development. These strategies

outweigh due to their capacity to root the agri-food systems in the territory, allowing the smallbusiness to organize in such a way that they can differentiate their products on the base of their

unique character.

On the other way, by valorizing the specific bound between the territory, the human

beings and the product, these strategies contribute to a sustainable administration of the resources

and of the original agriculture, that founds the product tipicity.

There are three bound factors that contributed to the success of the terroir strategies.

In the first place, the lost of the landmarks concerning the agri-industrial model led to thechange of the consumer behavior for whom these products represent a refuge, giving them the

opportunity to fulfill their new expectations (taste, environmental protection, health, social ties,

ethics). In the second place, we admit that the strategies of the actors from areas and industries,

more and more sophisticated regarding the terroir concept, knew how to respond to the demand

of the developing markets. Last but not least, the multitude of labels that indicate the bound

between the products and the territory permitted the structuring of the terroir products market

and brought more guiding marks to the consumers. These labels are very diversified, resulting

from the public or private right. There are to be called hereinafter under the general term of

geographical indication (GI).
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1.2 THE INTERNATIONAL CONTEXT

GI emerges as a central and structural element in the terroir strategies. From a sectorial point

of view, GI is in the main time an offensive and defensive tool. Offensive because it leads to a

segmentation of the market and a rise of the prices and facilitates the coordination of the offer.

Defensive because it allows the fight against the encroachment of the reputation concerning the

origin of the products.

From a territorial point of view, GI is a tool of coordination of the actors and administration

of the products.

A GI is a place or country name that identifies a product to which quality, reputation or othercharacteristics are attributable. A GI signals to consumers that the goods have special

characteristics as a result of their geographical origin. Therefore, a GI is more than an Indication

of source or provenance; it is a reference to a quality. As opposed to a Made in label that does

not refer to a certain quality.

Product characteristics, production expertise and consumption experiences are incorporated over

time within the name of a unique product so that the acquired reputation becomes a valuable

asset. When this asset is linked to a particular geographical origin, it is generally recognized by

the use of a GI to designate the product.

Through the contributions of many local producers, some products earn a reputation over time

that is inextricably tied to the place of production. Contrary to the use of an individual company

name or commercial trademark, a geographical indication can benefit all producers in a region

by associating a specific product with a given territory.

A GI encompasses four main elements:

a defined geographical area of production;

specific production methods;

specific product quality and;

a name and reputation that differentiates the product from others.

There are many types of identifiers that may constitute a GI:


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a geographical name alone can become the name of the good (such as Bordeaux or

Champagne), or the origin of the product being associated with its common name such as Coffee

of Colombia );

a name, symbol or words referring to a place and its local people, although they are not names

of geographical places (for example, Feta or Basmati);

additional associated characteristics that should also be considered as geographical identifiers.

For example, images of famous places like mountains or monuments, flags, specific objects, and

folkloric symbols;

Indeed, at the international level, GIs are defined and recognized as intellectual property rights

by the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) of the

World Trade Organization . In fact, two specific international definitions exist in relation to GIs:

geographical indication and appellation of origin. These two are distinct from the indication ofsource, which does not refer to a specific quality:

Geographical Indications defined by the TRIPs Agreement in 1994, are indications which

identify a good as originating in the territory of a member, or a region or locality in that territory,

where a given quality, reputation or other characteristic of the good is essentially attributable to

its geographical origin

Appellation of origin represents a more restrictive category of GIs, defined in the Lisbon

agreement of 1958, as geographical designations of products whose quality and characteristics

are due exclusively or essentially to the geographical environment, including both natural and

human resources.

Indication of source generally refers to a sign that simply indicates that a product originates

from a specific geographical region, in particular some countries. Therefore, even if the

indication of source refers to a geographic name (the country name), it is different than the

geographical indication and appellation of origin, which refer to a specific quality.

Since 1995, the TRIPS Agreement has required all WTO members to establish a national legal

framework for the protection and use of GI names for specific products .


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Most Governments have adopted legal instruments that protect GIs, although there are

significant differences among them. Tools for GI protection range from general national laws on

business practices designed to prevent unfair competition or protect of consumers, to specific

regulations for the registration of GIs.

Once the Protected Designation of Origin (PDO) was established in 1947 in France, the use

of the name of a city to designate a product was for the first time protected by a legal frame. The

protection extended in the European Union in 1992, with the denomination of Protected

Designation of Origin (PDO) and Protected Geographical Indications (PGI).

The European Union enacted in 1992 the regulation 2081/92 regarding the protection of the

products with a geographical indication (designation of origin) and PGI (protected geographical

indication) in order to accomplish the exact objectives mentioned in the regulation.

The regulation takes into consideration mainly the following:- A set of concerns for the local and rural development. In this case we have to concentrate

on a policy of protection of the geographical origin in order to accomplish these

objectives.

- The promotion of specific products: it must be established what specific and typical

quality really means in order to fulfill the expectations of the consumers.

However, this regulation concerns the protection of the products with a geographical

indication, that present precise definitions for PDO and PGI, but it is not a tool for their

administration and framing. In order to respect the subsidiarity, each member state has to

create regulations of administration and control, in France for example, INAO has taken care of

the PDO and PGI until 2007, in Romania, ONPTER is in charge of this aspect.

On an international level, there are two distinct frameworks that protect the localized

products. The first exists since 1958 (Treaty of Lisbon) and states that the denomination of

protected origin designates a product [] whose quality and characteristics are due exclusively

to the geographical area, that includes the geographical factors and the people. The second

(Legal aspects of trade-related intellectual property) restates in a more detailed way the GI

principle in the WTO.

In 1994 the agreements for the World Trade Organization were signed by the most

powerful economic powers of that time. Among the clauses of these agreements we emphasize

those concerning the Technical Barriers to Trade (TBT): it is strictly forbidden for the member


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states to prevent the trade of a product due to technical reasons (or to discriminate in favor of a

product), other than the ones related to public health, the environment, the intellectual property

or disturbing the public order.

As it is an aid from the state, the protection of PDO and PGI recognizes their character of

being a collective intellectual property. Therefore, the term of geographical indication was

recognized within the WTO in 1994 in the agreement regarding the Legal aspects of trade-

related intellectual property (TRIPS). This agreement makes a distinction between wines and

spirits, and other agricultural or food products. For wines and spirits, the recognition of the

names of geographical indication (GI) is a must for all the countries that signed the agreement,

the moment when one of the member states took legal action to protect a product name. For other

products, protection is not considered necessary only if the state which requires the protection of

a product name shows the risk of unfair competition.The European Union approved of this agreement and pledged to create lists of

protected names and submit them for approval to the World Trade Organization,

but provoked the hostility of the United States (and its allies in the New World), which without

taking into account this international agreement, have initiated international procedures to

condemn the PDO-PGI Regulation in 1992.

At the same time, the agreement provoked hostility from non-European countries that did

not grow wine and that want to generalize the clause specific to wines to all products, thereby

helping U.S. hostility for the protection of GI.

In March 2005, the panel of experts of OPM analyzed the divergences with the U.S.: the

PDO and PGI protection established by the EU is not contrary to WTO rules, provided that their

management is done in a transparent manner and it respects internationally recognized rules.

WTO has given the European Union a time spam of a year to establish the PDO-PGI regulations.

In short, the subsidiarity was over the EU could recognize PDO and PGI in the world

and could apply uniform control measures according to EN 45011 or ISO 17020 norms. This

WTO decision was welcomed by the European Commission, because the subsidiarity deprived it

from monitoring each country. So the EC regulation 510/2006 has replaced the EEC Regulation

2081/92. The Member States were given a period of three years to comply with the new

provisions the final phase taking place in 2009.


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We will not address here the nature of the reform, we only emphasize the fact that it

focuses on producer responsibility and control methods, but in the main time it omits

considerations regarding local development discussed in 1992.

A large number of countries in the world have adopted the GI: there are 800 products

with GI out of which 191 come from 49 countries outside the EU, of which the U.S. detains

(42), India (16), Ethiopia(14) and China (12 ) (Lee J. and Rund TB., 2003).

Through the study of honey from Romania, we intend to evaluate how interesting and

feasible the GI is, in order to combine sectorial and territorial development in a terroir strategy.

Romanian honey industry representatives have expressed interest in labeling the honey

from Romania as a GI type "the possibility of obtaining GI can be taken into consideration,

which is a higher form of labeling. GI must be based on the specificity of soil and climate and on

the tradition of practicing beekeeping in Romania. The only product that could obtain the GI

based on geographical considerations is honey. "

What interests us are the conditions under which the quality, and tipicity of products are

taken into account and how to guarantee their preservation to consumers. It would be very easy if

we had a set of objective instrumental measures in order to attest the fact that a product belongs

to the PDO or PGI quality. But before drawing a conclusion about the usefulness of objective

information, we must take into account the complexity of the concepts related to quality, tipicity,

and by default the origin of products.

First of all, it is compulsory to turn to some definitions and concepts that have important

economic consequences for the strategy of the firm and for the organization of controls, to ensure

correct information ("fair") to the consumer:

- Concerning the origin, provenance and ways to designate them

- Concerning the quality, and the tipicity in particular

- Concerning the consumers perception regarding the specific quality of the product

- Concerning the authentication of the quality and tipicity of honey

On the strength of the production and marketing system based on the Protected Designation of

Origin (PDO), honey is a product that expresses very well the concept of tipicity. After a brief

explanation of the concepts of quality, tipicity, this part will present various methods for

assessing the quality given by the tipicity of the product, so that finally Romanians


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honey,expecialy those harvest in Transylvania will be certified as a typical Romanian product in

order to obtain Geographical Indication

Certain food and agricultural products have a specific quality linked to their production origin

that can make them famous as a result of characteristics linked to their local natural and human

environment and they have a generic name origin-linked products.

Origin-linked products are those that can be differentiated as a result of their local identity or

typicity. Their identification as GI products is justified by the particular local context in which

they originate and that gives them a specific nature, quality or reputation in consumers eyes.

The first step for local actors is to be aware of this tipicity by identifying the links between

product quality and the local environment and depends on the presence of three main pre-

requisites:

The product: it presents some specific characteristics linked to geographical origin that gives ita special quality and reputation in the market, resulting in specific consumer demand.

The place: the special quality characteristics are the result of the natural and human resources

of the local area in which it is produced.

The people: the local producers, having inherited traditions and know-how, together with other

local stakeholders, must be motivated to engage in a value creation and preservation process

Figure 1: Interaction between people, product and place


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The product: specific quality and reputation

Some agricultural and food products display specific characteristics which are inherent to the

place where they are produced and that give the product a reputation.

Miel des Vosges, Miel dAlsace , Miel de la Alcarria, Mel de Barroso or Menalou Vanilia fir

honey are only a few examples of product names which acquired a reputation linked to their

geographical origin. Specific quality means that some characteristics differentiate the product

from the other products of the same category and consumers perceive it as such, regardless

whether the market is local, national or international.

Regarding the differentiation in the market, the typicity is an important feature to

consider,meaning the product is not only specific; it is also unique, by its combination of naturaland human production factors, anchored to the territory. Such products cannot therefore be

reproduced elsewhere. The degree of specificity and anchorage of the local resources is a

measurement of typicity.

Consumers perception is linked to the reputation of the origin-linked product and its recognition

in the market. Market studies are necessary to identify this reputation and perception by

answering different questions. For example, is there a specific demand and a willingness to pay

for it? Do consumers differentiate that particular product from others of the same category? Is

there a specific group of consumers who can be targeted for this specific product?

Therefore, the name of the product plays an important role in consumer recognition of the

specific quality product, by referring to geographical names and symbols, which are

unmistakably linked to geographical places and their people.

The place and the local resources

The place represents the geographical area that bears both the natural resources (physical and

biological environment or milieu) and the human resources linked to the generations of

inhabitants and producers. This territory is delimited in space and relates to the interaction

between its people and the environment. The term terroir represents the capacity of this territory

to confer, over time, specificity and typicity to the product.


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Natural resources are often linked to human intervention, as the physical environment is also

shaped by human choices and adjustments made to adapt production methods to the

environment on the basis of a cultural heritage and local know-how. In this sense, the product

belongs to the local community that created, adapted, preserved and passed on the specific

environment, the local resources, the techniques and the culture required to reproduce it.

The terroir and its different components, the traditions and know- how, are the outcome of

actions taken by many people from the territory over a long period. This means that the product

is tied to a local community and has a heritage dimension. Consequently, a product, its name and

its reputation in the market, cannot be the property of a single person,nor of a single private

actor. On the contrary, the local community acquires a collective right to the product and is

entitled to ensure that the product is made according to the rules defined by the community itself.

People: the collective dimension and potential for action

As a result of its heritage dimension, the product specificity and reputation belong to the local

people who share a collective right to benefit from it.

Therefore, a collective approach is required to engage the quality virtuous circle in order to

promote and preserve the origin-linked product and local resources. The potential for engaging

the value creation process depends on the will, motivation and capacity of the local community,

and especially of the local production system, to coordinate their actions and promote the

product collectively.

Many stakeholders are involved in the production and value creation process of a specific-quality

product linked to its geographical origin, and many different actors may have an interest in the

product. Firstly, supply chain actors play a central role, and often within a traditional production

system, the role played by women, elderly people and families is of particular importance. In

fact, the local community members may see the product as an element of their local culture and

at the core of local activities. Local institutions, public authorities, consumers, researchers,

NGOs, etc., inside and outside the territory may have an interest in the promotion of the origin-

linked product .

These stakeholders may influence differently the origin-linked product development, conveying

their own vision of the product and their own interests. For example, local consumers are more

interested in specific aspects of a product that may be different from those considered by


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businesses. On the other hand, bigger and/or modern companies are interested in different

aspects of a product than an artisan or a smallscale business

1.3. An example of a origin-linked product Lunigiana Honey PDO

Figure 2 : Lunigiana Honey

Source: www.parcoappennino.it

A valuable environment and healthy air, water, and soil transform the land of the

National Park in general and Lunigiana in particular into an authentic paradise for the bees.

From here the precious local honey productions: the "chestnut" and "mixed flowers" varieties

can even boast the Lunigiana Honey PDO label.

Lunigiana honey was the first Italian honey which obtained from the European Union the PDO

label (Protected Designation of Origin), an important acknowledgment of the product typicality.

The production area includes the 14 Municipalities of Lunigiana, whose mountain landscape is

characterized by a diversified vegetation mainly consisting of acacia and chestnut tree forests,

very valuable plant essences in the field of bee-keeping. This feature, combined with a tradition

dating back to the end of the 15th century and the low industrialization level, creates in

Lunigiana an ideal environment to practice a quality bee-keeping based on acacia and chestnut

honey productions with excellent organoleptic and chemical-physical features. 25 producers

have joined the PDO production, for a total of over 1,800 beehives. Some of them, precisely over
http://www.parcoappennino.it/en/gallery.dettaglio.php?id_foto=183


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1,100 beehives, have chosen a double quality label: PDO and Organic Farming. Thanks to this

choice, bee-keepers offer consumers further guarantees on the bee-keeping and product

processing methods, which respect the environment and our health

Chestnut Honey

Figure 3: Sweet Chestnut Blossom

Source:www.honeytraveler.com

The chestnut tree belongs to the same family as beeches and oaks. Historically for

thousands of years, the chestnut was a primary source of nutrition in the mountainous areas of

the Mediterranean where grains did not grow well. The primary honey producer, the sweet

chestnut tree (Castanea sativa) is common in Europe where it was introduced from Sardis (in

what is now Turkey) thousands of years ago, hence the name Sardinian Nut, now known simply

as the chestnut.

Chestnut honey has a strong aromatic taste and a slightly bitter after taste. Rich in pollen

content, mineral salts and tannin, with a high proportion of fructose that resists crystallization

and a relatively low acidity. Dark in color, ranging from yellowish brown to almost black,

sometimes with amber hues, it has an aromatic, pungent herbal aroma and taste and slightly

tannic (due to the tannin in the tree). The flavor is unique, not very sweet and with an almost

bitter aftertaste and very persistent, highly appreciated by those who like a strong, less sweet

honey
http://www.honeytraveler.com/http://www.honeytraveler.com/http://www.honeytraveler.com/wp-content/uploads/2010/05/Sweet-Chestnut-crop1.jpghttp://www.honeytraveler.com/


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Figure 4: Chestnut Honey Lunigiana DOP

Source: www.inbadia.it

Chestnut honey is harvested at the end of June and beginning of July. Along with the

DOP certification, it must indicate the town where it was producedAlso in Spain are two

Geographical indication for honey:

Miel de Galicia (NW Spain): Chestnut honey occurs primarily in the provinces of Lugo and

Ourense (including the regions of A Fonsagrada, A Ulloa, Ancares, O Courel, The Sierras of

Manzaneda, San Mamede and Invernadeiro, the valley of the Sil, O Bolo, and Valdeorras). The

province of Pontevedras main production area is Deza and the Terra de Montes

Miel de Granada (S Spain) Chestnut honey occurs in the Province of Granada. Beekeepers

migrate their hives within the province as necessary to collect hestnut nectar
http://www.honeytraveler.com/wp-content/uploads/2010/05/Miel-de-granada-Logo.gifhttp://www.honeytraveler.com/wp-content/uploads/2010/05/Miel-Galicia-logo.gifhttp://www.honeytraveler.com/wp-content/uploads/2010/05/PGI_es1.gifhttp://www.inbadia.it/image_big.asp?idfoto=216


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Figure 4: Logos of GI honeys from Spain

Commonly sold in Europe as Acacia honey and in the United States as Locust or American

Acacia, this honey is obtained from the False Acacia or Black Locust tree and seldom from

Acacia species at all. Extremely light colored, lemonish white or yellow-green, and if relatively

free of other floral sources, it can be very transparent, like liquid glass. The aroma is floral,

delicate and not very persistent. The flavor is very sweet with hints of vanilla. The flowery notes

are noticed best in the finish.The honey remains liquid and does not crystallize easily due to itshigh fructose content.

Figure 4: Acacia Honey Lunigiana DOP

Source: www.inbadia.it

In the second half of May, Acacia honey is collected in the Lunigiana (Tuscany) Region of Italy

(DOP Italian version of PDO) Along with the DOP certification, it must be indicate the townwhere it was produced: Aulla, Bagnone, Casola in Lunigiana, Comano, Filattiera, Fivizzano,

Fosdinova, Licciana Nardi, Mulazzo, Podenzana, Pontremoli, Tresana, Villafranca in Lunigiana,

or Zeri.


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2.1. LEGAL PROTECTION OF GEOGRAPHICAL INDICATIONS

Two main approaches can be distinguished at the national level:

Public law approach: this is the case when public authorities enact legislation dedicated to the

specific protection of GIs (sui generis system). This approach generally consists of an official

recognition of GIs by granting the status of a public seal of quality, often through a common

official logo, where Governments can protect the use of the GI ex officio.

Private law approach: using laws against unfair competition, passing off, and trademark laws,

where the protection is primarily based on private actions.

Other intellectual property rights may also be used to protect GI products. For example, GIs mayinvolve logos of distinctive shapes. However, these are generally registered as graphic

trademarks. They may also involve the use of patents for processing or packaging, industrial

models and designs, etc. Registration is the most common legal tool to define the circle of

legitimate users and ensure protection for GIs. Specific GI legislation (sui generis systems) and

trademark laws can also be used to this effect.

2.1.1 The Sui Generis System for Protected Designation of Origin (PDO) and Protected

Geographical Indication (PGI) in the E.U.

In 1992, the European Union approved two categories for the protection of Geographical

Indications: Protected Designation of Origin (PDO) and Protected Geographical Indication

(PGI). These intellectual property rights extend to all food products with the exception of wine

and spirits and they have replaced national pre-existing intellectual property rights for these

indications in many European countries. The definition of a PDO implies that all phases of the

production process should be localized inside the production area and the quality of the product

should be strictly related to a particular geographical environment by its inherent natural and

human elements. The PGI covers agricultural products and foodstuffs closely linked to a

geographical area, where at least one of the stages of production, processing or preparation takes

place within the given area.


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The EU PDO/PGI regulation provides EU-wide protection to names of agricultural

products and foodstuffs to prevent the use of registered names unless the products originated

from the specified territory and according to a specified Code of Practice. As a result of

amendments introduced under EU Regulation 510/2006, this protection is also provided to

names of products produced in countries outside the EU, if these names are themselves protected

in their own country of origin. The EU Commission can now also receive applications directly

from non-EU producers. In order to benefit from PDO/PGI protection, EU producers can apply

to register a name with their national authorities. The application for review and publication of a

GI by the EU commission is free of charge. All applications must refer to a Code of Practice that

must include at least the following:

1. The name of the product comprising the designation of origin or geographical indication.

2. A product description, including raw materials, if appropriate, and principal physical,chemical, microbiological or sensory properties of a product (involving taste, colour, odour and

feel).

3. The geographical region of production (and any details relating to the origin of raw materials

used in production of the product).

4. A description of the method of production, including local know-how and packaging of the

product, where appropriate.

5. Details of the relationship between the quality or characteristics of the product and the

geographical environment in the case of a PDO or, as the case may be, the link between the

specific quality, reputation or other characteristic of the product and the geographical origin in

the case of a PGI

6. The name, address and specific tasks of the authorities or bodies verifying compliance with

the provisions of the specification.

7. Any specific labelling rules for the agricultural product in question.

8. Evidence that some quality, reputation or other characteristic associated with the product is

linked to the region of production.

If the application is successful and the name is registered, then any producer from within the

region complying with the product specifications and controlled by a control body or national

authorities can use the registered name.


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The level of protection offered to GI products is a very important but not the only aspect

of the legal framework that national governments can promote. The recognition of the GI as an

intellectual property right also requires the establishment of rules of the game. These rules

need to ensure the participation of all relevant stakeholders in the development and management

of a GI system, to avoid the exclusion of concerned stakeholders and to ensure that both social

and economic issues are addressed.

The existence of a sound legal framework for the protection of GI-related intellectual property

rights, both inside the country and at the international level, is an important condition for the

economic sustainability and the implementation of a GI system. This requires the integration of

many different policy aspects at the local, national, regional and international levels to ensure the

system is transparent, enforceable and efficient.

A transparent registration procedure is necessary, one that clearly defines the conditions forapplication without making the procedure too complicated. Indeed, smallscale producers for

example are likely to be discouraged from applying for GI protection if this involves highly

technical, bureaucratic or complex registration procedures. In these circumstances, large

producers who may have more resources to devote to the process are likely to gain an unfair

advantage in the GI market.

In addition to registration, it is also important to establish an efficient system for the oordination

and enforcement of GIs in practice. The national institutional framework will greatly influence

the effectiveness of the GI system in this regard, in addition to the role played by local

stakeholders in ensuring adequate self-regulation and internal controls, such as through the

establishment of a participatory guarantee system .

To be effective, the legal framework should be accompanied by an adequate provision of

information on the objectives and characteristics of the normative framework, as well as

capacity-building measures, both for public institutions and production system stakeholders.


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2.2.THE LEGAL FRAMEWORK IN ROMANIA

Romanias adherence to the European Union implies that our country has to respect some

conditions in the case of traditional products, so that they can be commercialized in the European

area. This category of products has to be registered as traditional specialties, having the

meaning of traditional products.

Since we are an EU member, there were some problems regarding the manufacturing and

commercialization of traditional cheese, and of other products, in what concerns the strict

requirements regarding hygiene and food safety. Whatsoever the type of production (traditional

or conventional), any manufacturer/ processor has the obligation to respect the minimum

requirements of food safety, established by the legislation in force and the ISO standard SR EN

ISO 22000:2005, adopted in Romania in September 2005 (Food Safety Management Systems.

Requirements for any organization in the alimentary industry.)

Below are defined the terms used and establishes the romanian authorities responsible

with documentation, in order to obtain protection of geographical indication or of the designation

of origin of an agricultural or alimentary product, and with the surveillance of labeling on the

market and of using the national or community logo.

In order to have a clear presentation, the expressions and terms below have the following

meanings:

the national logo represents the national symbol present on the labels of agricultural or

alimentary Romanian products, commercialized under a registered name (present in the

Registry of origin designation and protected geographical indication) having national

protection;

agricultural or alimentary product certification is the procedure by which an inspection

and certification organism affirms that the product is authentic and respects the tender

book or the technical specifications; it could also be a regulation regarding production,

processing, defining, description, presentation, labeling and commercialization.

inspection and certification private organism is a recognized entity of the Ministry of

Agriculture and Rural Development, accredited in conformity with the European standard

EN 45011 and ISO/CEI 65 (General requirements for organisms which are working with

product certification system).


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the Code of Practice is the document which comprises the name and description of the

product, the geographical area, and the proof that the product originates in that area, the

method of obtaining the product, the relation between the quality and its characteristics

and the geographical environment or the geographical origin, authorities and organisms

that verify these issues, supplementary elements of labeling. The Code Practice is

elaborated in conformity with the provisions of the Councils Regulation (CE) no.

510/2006;

the registration request is the documentation which contains data regarding the name and

address of the solicitor, the Code of Practice and a unique document; it is elaborated in

conformity with the provisions of the Councils regulation (CE) no. 510/2006;

a group of manufacturers is any association, irrespective of form or juridical organization, of

manufacturers or processed, of who manufactures or processed the same agricultural or

alimentary product for which it is demanded protection for the origin name or geographical

indication; a physical or juridical person can be considered to be a group in conformity with

the provisions of the Commission Regulation (CE) nr. 1.898/2006, regarding the details

about implementation rules of the Commission Regulation (CE) nr. 510/2006;

the unique document contains the main elements of the Code of Practice and describes the

relationship between the product, its environment and the geographical origin; it is elaborated

in conformity with the provisions of the Commission Regulation (CE) nr. 1.898/2006,regarding the details about implementation rules of the Commission Regulation (CE) nr.

510/2006;

the registration of the origin name and of the geographical indication of an agricultural or

alimentary product represents the date of registration in the Registry of origin names and

protected geographical indications, and the date when national protection is received;

the Registry of origin names and protected geographical indications is the legal document of

registration containing the names with national protection;

traditional product it has to be obtained from traditional raw materials, it has to have a

traditional composition, or a manufacturing/processing way which reflects a traditional

technological procedure of manufacturing/processing, and which can be easily distinguished

from other similar products in the same category;

the traditionality is the sum of elements by which a product can be easily distinguished


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from other similar products in the same category; the traditionality cannot be limited to a

qualitative or quantitative composition, or to a way of manufacture established by a

community or national regulation, or by voluntary standards; this rule is not implemented if

the regulation or the standard was established in order to define the traditionality of a

product;

the certification of GI products is the recognition of a products traditionality by its

registration in conformity with the provisions of the norm;

The competent institutions for this domain, for this category of processors are:

ONPTER - the National Office of Traditional and Ecological Romanian

Products

MADR - The Ministry of Agriculture and Rural DevelopmentofRomania

ANSVSA - National Sanitary Veterinaryand Food SafetyAuthority

ANPC - The National Authority for Consumer Protection

In Romania, the competent authority which is ought to verity the documentation used to register

a GI product and to give the protection for the name is MADR, whose Direction for policies for

alimentary products and animal breeding is responsible to create and administrate a registry of

traditional product attestation.

ONPTER has attributions in order to support the manufacturers, to promote and protecttraditional and ecological products.

ANSVSA is the institution which regulates the activity in the food safety domain and takes

actions based on functional and decisional autonomy, according to Law 150/14.05.20041 (with

subsequent additions and modifications). ANSVSA is the transposition of 178/2002/CE

Regulation in the national legislation.

ANPC is the institution which verifies the labeling of products and the use of logo.

The national logo will be used in order to identify the products name with national protection onthe market.

LEGISLATION

1. H.G. nr. 134/ 6.02.2008 regarding guaranteed traditional specialties, contains updated

terminology and requests in order to obtain the protection for guaranteed traditional


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specificity of an agricultural or alimentary product. It also contains the verification on

the market of labeling and national and community logo.

2. H.G. nr. 828/ 2007 establishes:

the authority responsible with the control of documentation drawn up to receive

the protection of a name (geographical indication or origin name) MADR.

the authority responsible with the verification on the market of labeling and

national and community logo ANPC.

the control of documentation drawn up to receive the protection of a name

(geographical indication or origin name)

private inspection and certification organisms (accreditation according to SR EN

ISO 45011)

3. ORDER no. 690/ 28.09. 2004 (MO 938/ 14.10.2004), regarding the approval of the

Norm regulating the conditions and criteria for the attestation of traditional products

establishes:

the procedure of registration and control of documentation drawn up to receive

the protection of a name (geographical indication or origin name)

the procedure to declare opposition at national level

the procedure of sending the documentation to the European Council

the specific regulations regarding the model and the use of national logo

4. from MAPDR no. 285/2004 in order to approve the Norms regarding the protection of

origin names and geographical indications of agricultural and alimentary products.

5. MAPDR Order no. 233/2004 in order to approve the Norms regarding specificity

attestations of agricultural and alimentary products.


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2.3. THE CODE OF PRACTICE

The code of practice is a document establishing the rules for the use of a geographical indication

(GI). Its elaboration is a very important step, leading to the voluntary standard or specifications

with which local producers who want to use the GI have to comply.

The code of practice , which could also be called book of requirements, product

specification, disciplinary document etc., corresponds to a voluntary standard that defines the

specific quality of a product that is shared among producers who use the related geographical

indication.

The aim of the code of practice to provide rules for applying the specific quality to the GI

producers located in a delimited area. Therefore, it must describe the specific characteristics of

the GI product which are attributable to its geographical origin, justifying the link between the

product and the territory (the same product cannot be elaborated in other territories). It mustexplain how a given quality (the specific attributes that make the product different from others of

the same category), a reputation (history of the product, past reputation, current reputation) or

other characteristics (for instance know-how) are linked to the origin. The rules do not have to be

very complicated or numerous, but they need to be extremely focused on the elements that give

the product its originality and typical character.

The code of practice includes the definition of the product (name, characteristics, production and

processing methods), the delimited area concerned and is associated with a guarantee system

(control plan) to ensure conformity of a GI product to the specifications. As a consequence, the

Code of practice both a tool for internal coordination (collective rules for fair competition

between producers) and external trust (recognition by society, information on quality available

for retailers and consumers).


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2.3.1 THE MAIN CONTENT OF THE CODE OF PRACTICE

Description of the product

The main physical, chemical, microbiological or organoleptic characteristics of the product,

focusing on features that can be easily monitored.

Ingredients and raw materials

The ingredients and raw materials that should be used in the production process, and/or

ingredients and raw materials that should not be used.

Definition of the process

The method for obtaining the GI product in all the phases of the production process (agricultural

production, transport, processing, conditioning, seasoning/maturing and final packaging). If

needed, insert explicit prohibition for using some production methods. Focus on relevant phases

and aspects.

Demonstration of the specific quality linked to geographical origin

Focus on the elements justifying the link between the specific quality and the resources in the

geographical area (natural and human).

Definition of the production area

Description of the delimited production area. When needed, a distinction is made between the

production area of the raw materials and the production area for processing and conditioning.


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Name(s) of the product and labelling rules

List of the name(s) that the GI product can have and when needed, the quality classification and

differentiation (depending of the processed stage or presentation).

Control plan - verification system

Description of how the controls will be used and when needed, the certification system


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CHAPTER III

3.1. THE CHARACTERIZATION OF THE BEEKEEPING SECTOR IN ROMANIA

3.1.1. Short history of Romania beekeeping

Romania has a long tradition in raising honey bees and manufacturing apiarian products, the

apiculture being an independent occupation since ancient times, initially for the products

obtained (honey, pollen, royal jelly, propolis, wax and bee venom) and afterwards, for the

contribution these insects have upon cultivation of crops (fruits, vegetables and seeds) through

pollination (The National Beekeeping Program 2010).

The Romanian apiarian sector is one of the agricultural sectors with the longest tradition. The

Thracians and dacians, the ancestors of Romanian people, were raising honey bees to obtain

honey, wax and other beekeeping products. Herodotus mentions in the Vth century B.C. the

multitude of bees at the North of Danube in Book V, Chapter X. This is the first documentary

attestation of apiculture on the Romanian territory: The Thracians say that the territory beyond

Istrum is occupied by bees, and this is the reason why nobody can go through. There are also

many historical sources, archeological discoveries, folkloric sources which attest the continuity

of apiculture in the Carpato-Danubo-Pontic space. The archeological research proved the

existence of bees in ancient times. This affirmation appears in the study Anabassis

written by Xenofon, the great Greek historic (430 355 B.C). According to him, the food ofGetae people was mainly honey, vegetables, milk and little quantities of meat, because the belief

in Zamolxes restrained them (CHIRIL AURELIA and PTURIC SILVIA, 2005).

The chronicler Dimitrie Cantemir wrote that the locals were raising honey bees and were selling

honey and wax.

The Romanian honey bee,Apis mellifera carpatica, has been formed in the specific pedoclimatic

and melifer conditions in the Carpathian area. The continental temperate climate in our countryis characterized by reduced precipitations, large varieties of temperature and powerful winds.

The Romanian bees are a kind race of bees, having a tamed behavior around gofers.

In 1785, Ioan Molnar Piuariu, publishes the first Romanian book of apiculture, The Economy of

beehives. In the XXth century, national and international associations of bee breeders are formed


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APIMODIA. In 1958 Romania becomes member of this association, and in 1965 the elected

president of this association was prof. Viaceslav Harnaj, a Romanian apiarian personality. The

Romanian Bee Breeders Association was set up in 1957 having as president the same prof.

Viaceslav Harnaj. Afterwards, the Institute of Research and Manufacture of Apiculture was set

up in Bucharest, along with many subsidiaries in the country, so that the apiarists could keep in

touch (CHIRIL AURELIA and PTURIC SILVIA, 2005).

In 1989 the Romanian honey production represented 1.4% of the total of honey on the globe, and

8.5% of the European production, which means 62,6 kg/1.000 inhabitants, comparing to the

European average of 30,7 kg and the global average of 20.6 kg. After 1990, because of the

abolishment of state and corporatist apiculture sectors, the number of bee families was halved,

and the private property became the dominant part (98%). This fact determined the abolishment

of numerous apiarian exploitations and the diminution, respectively the loss of the effectives

(ZEGREA, E., 2006). In this period, there was a legislative vacuum as well. Ulterior, some

normative acts were adopted in order to encourage apiculture. The law of apiculture 89/1998 was

adopted.

The evolution of the Romanian beekeeping patrimony had three distinctive stages between 1990

and 2003 (ZEGREA, E., 2006):

stage 1990-1993, when the apiarian patrimony halved, with the disappearance of 638000

bee families, especially the ones from state and corporatist apiculture sectors.

stage 1993-2000, when 166000 bee families disappeared.

stage 2000-2003, when the apiarian effective grew with 255000 bee families, with an

average annually growth rhythm of 75000 families.

The apiculture production resources are the melifer plants species of plants that assure thenecessary raw material for the biological processes of the bees. The melifer basis can be defined

as the totality of melifer plants situated in the fruitful activity area of honey bees (3 km or 2800

hectares of land), which assures the necessary raw material for their survival and development

(ZEGREA, E., 2006).


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Due to the geographical position, to optimal natural and climate conditions for the development

of nectaro-pollenifer species, Romania has favorable conditions to develop apiculture as an

economical activity. The obtained quantity of honey depends on the melifer potential of the area

given by the melifer plants nectar and pollen, the size of the area, the capacity of bees to gather

and the meteorological conditions (ZEGREA, E., 2006).

4.2. BEEKEEPING PRODUCTS

In order to develop the beekeeping sector in Romania we have to take into consideration the

diversification and intensification of production, the growth of honey bees families, the

assurance of production quality, the harmonization of Romanian legislation in conformity with

the legislation of the EU.

The economic importance of apiculture is given by the value of beekeeping products directly

obtained from honey bees, and by the value of agricultural products obtained from cultivated

plants that have been pollinated. The medical value of apiarian products is very important; they

are used in apitherapy for the treatment of some diseases.

Large quantities of honey are produced in Romania, but a very small quantity is valorized on the

internal market because the honey consumption per inhabitant is one of the lowest in Europe -

300 grams, comparing to 2 kg in Germany, followed by Holland and Belgium with 1.5 kg (TheNational Statistics Institute). In a year with no meteorological problems, Romania produces

around 20000 tones of honey, from which 50% is polifloral honey, 35% is locust honey and 15%

is linden honey.

The honey production in Romania (The National Apiarian Program, 2010)

Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 20092010

estimationHoney

production

- tones

1174

6

1259

8

1343

4

1740

9

1915

0

1819

5

1819

5

1676

7

2003

7

2150

015000


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0

5000

10000

15000

20000

25000

2000 2001200220032004200520062007 200820092010

estimation

Honey

production -

tones

Fig.1. The evolution of honey production in Romania

In 2010, the honey production in Romania has decreased very much caused by the unfavorable

weather conditions, with precipitations on the whole period of locust blooming.

An important role in the apiarian production is held by secondary products: the pollen harvested

with the help of collectors, propolis, royal jelly, wax, bee venom and larval triturate (known by

its commercial name of apilarnil). These secondary products are used at the manufacturing of a

wide range of nutritive supplements, medicines and for the production of cosmetics.

The national market of honey is dominated by a few manufacturers, who collect and process

honey from hundreds of individual apiarists. Their products can be found in retail markets or as

raw material in the industrial field. The increase of apiarian production and the activitydevelopment of the apiarian sector need an intense preoccupation for production diversification,

from the part of all actors in this domain. Besides honey, the tapping of the other beehive

products (pollen, royal jelly, propolis, pasture, bee venom, and apilarnil) generates growth of

revenues, and an increased efficiency of this activity.

Between 2008 2009 there was an evolution of honey price in Romania. The price was

influenced by factors like: the general evolution of the market from a global perspective, the

evolution of valutary exchange course, the level of living, the awareness of a healthyalimentation among Romanian population (The National Apiarian Program, 2010).

The graphs below represents the evolution of average price of honey in bulk and the evolution

of selling price of honey in romanian market places in 2008 and 2009.


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Fig. 2. Evolution of average selling price of honey

Source: (The National Apiarian Program, 2010)

The most representative Romanian area from the point of view of melifer potential and of

number of bee families is Oltenia, represented by the county of Vlcea, with approximately

70000 families of bees, and the county of Gorj with 27000 families. Muntenia is represented by

the county of Arges with 38000 families. Banat has 30000 families, and in Dobrogea, because of

the difficult climate conditions, the melifer base is reduced and so is the level of apiculture.

Every region of our country has at least two zones with apiarian potential (The Bee Breeders

Association). The actual trend is apiarian effective and apiarian production enlargement, becausethe pedoclimatic conditions and the melifer base in Romania allow the economic exploitation of

a large bee effective.


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614

745 781 839

888 920 975

1086 1109 11101280

0

200

400

600

800

1000

1200

1400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bee families

(thousands)

Fig. 3 The evolution of bee effectives.

Source: (The National Apiarian Program, 2010)

Between 2007 2009, due to the National Apiarian Program support, concerning the livestock

repopulation, the average of bee families (the exploitation category 1 50) has grown from 14

families/apiary to 18 families/apiary; at the rest of categories, the number of families grew with

2.21%, respectively 1.61%. Nowadays, Romania is among the countries with a well developed

apiculture, as a consequence of the large number of bee families, the quantity of obtained honey,

the diversification of apiarian production, the results of research activities and the training of

specialists, etc.

Table 2 The exploitation allotment of bee effective at 12/31/2009

The dimension of

the exploitation (no.

of families)

No. of bee families % of the effective

1 - 50 627.823 56,5650 - 150 265.676 23,94over 150 216.501 19,50TOTAL 1.110.000 100

Source: The National Apiarian Program, 2010


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0-5050-100

over 150

0-50

50-100

over 150

Fig. 4 Explotation of bee effective at 12.31.2010


In Romania, the ecological apiculture is a dynamic sector. The first manufacturers in ecological

apiculture were certificated in 2000, and their number is continually growing each year. In 2005

there were 132 manufacturers certified in ecological apiculture, in 2006, 335 along with nine

processors and two exporters, in 2008 there were 584 manufacturers, 15 processors, 22

merchants, one importer and eight exporters. In 2009, the number of persons who practice

apiculture was of 1018. In 2009, the production of ecological honey was of 3200 tones. The

exploitation structure in ecological apiculture comprises individual apiarists and associates in

apiculture (MADR).

The productions of ecological honey and apiarian products have significant results. If in 2000,

Romania was producing 6 tones of ecological honey, in 2005 the production was of 610 tones,

and in 2006 of over 700 tones. In 2008 the honey production was of 2357.307 tones, and in 2009

of 3200 tones.

Ecological honey and apiarian products are merchandised in the country and abroad. In 2006,

over 65% of ecological honey was exported. In 2008, 1100 tones of ecological honey were

exported to the UE markets (The National Apiarian Program, 2010).


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Fig. 4 The evolution of bee families ecologically certified


The quality of honey and apiarian products with ecological certification depends on the

treatments applied to hives, the quality of the environment, the extraction, processing and

depositing conditions. The purpose of the ecological apiculture is to obtain pure qualitative

apiarian products, without using chemical synthesis substances. Ecological honey is obtained in

conformity with the regulations and principles of ecological apiculture, established by the

community and national legislation. They way these norms are applied by the apiarian are

verified by an organism of inspection and verification.

In order to maximize the profitability of the apiarian sector, the rise of unitary selling

price is essential, by merchandising them to direct clients and by establishing a price that reflects

the quality of products. It is very important to offer the clients the possibility to taste the

products, and to inform them about the antioxidant, nutritive and medical qualities. The honey

can be sold in combination with hazelnuts, nuts, cinnamon, mint, pollen or pasture. The apiarians

can manufacture other products that contain honey such as salad dressings, vinegar with honey,

hazelnut butter with honey, sweets, hydromel, etc. (WENNING C., 2001).


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Table 3 The evolution of honey production ecologically certified

SPECIFICATION U.M YEARS2006 2007 2008 2009

total quantity of ecological honey -

export

tones 1242

756

1950

938

2650.1

1280

2800

1400The percentage of honey exported

from the total amount of honey

% 60 % 48 % 48 % 50 %

The percentage of honey exported

from the total amount of ecological

products

% 0.012 0.009 0.009 0.010

Source: registration of MADR operators.

4.3 The apiarians and the apiarian firms


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The professional training of an apiarian is very important before starting a business in this

domain. The biological particularities of the species and the technology of breeding bees need

serious knowledge in the domain (theoretical and practical).

Table 4 The main types of capital used in apiculture

Natural bees, a place to install beehives, water, sun, biodiversityHuman apiarian and merchandising knowledge and competences, health

and work forceMaterial equipments, materials, transport means, infrastructure, water and

energy input, buildingsSocial Help from family and friends, being a member in associations and

groups, access to information regarding the market, access to

research resultsFinancial money, economies, access to credits and funds

Source: BRADBEAR NICOLA, 2005

Because the apiarian products are not well and sufficiently promoted, the entrepreneurs in this

domain have to adopt useful marketing strategies, so that honey could be merchandised not only

in agro alimentary markets, but especially in specialized supermarkets here and abroad.

Being an activity that doesnt need great investments, breeding honey bees became a professionfor the persons that live from the revenues obtained by selling apiarian products, and a way of

relaxation for those who exploit different resources. The economical advantage that contributes

to the increase of revenues of apiarians is the valorization of beehive products. In order to

increase the production, the apiarians use multiple methods like: optimal dimensioning of the

apiary, intensive apiculture, maintaining powerful families, fighting against diseases and pest,

using apiary technology, etc (The National Apiarian Program). The apiarian is the person who

practices apiculture, and who owns, breeds or exploits bee families. There are several types of

apiarians: amateurs, semi-professionals and professionals. The main objective of amateurs is to

obtain apiarian products for his family, and eventually for a small profit. According to norms, an

amateur apiarian has around 1 50 bee families. There is an average work volume, the

genetically material is obtained by personal means, and the apiarian has another main job. In

Romania, there are a lot of people who practice apiculture as a hobby, without having solid


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knowledge of it. The semi-professionals have 51 150 bee families, the work volume is of 1300

1400 hours/year, the genetically material is bought from specialized stores, a modern

apiculture can be practiced with the help of work mechanization, and some products of the

beehive are primarily manufactured. The apiarians who have over 600 bee families are

considered to be professionals. In this case, pastoral apiculture is compulsory. The hours of work

/year are increasing, and additional season workers are needed. The functioning of an apiary is

very efficient under the form of a commercial society (BURA, M. et al., 2005). The main types

of apiarian exploitation and the main categories of apiarians can be found in Table 5.

Table 5 Types of apiarian exploitation

Type of apiary Small Medium LargeCategory of the

apiarian

Amateur Semi-professionals Professionals

Exploitation

type

Familial exploitation Farm Farm or commercial

societyBee families

owned

a minimum of 50 in

Romania, 80 100

abroad

51-150 in Romania; 100-

600 abroad

Over 600

Assurance of

reproductive

material

By personal breeding or

buying

Buying from specialized

stores

Buying from

specialized stores

Work force Own workforce Own workforce/

employees

Employees

Annual work

volume

Variable, usually in

weekends

Under 2000 2000-2400

juridical status Physical authorized

person

Physical or juridical

authorized person

Juridical authorized

personMotivation for

manufacturing

Adding money to family

budget, hobby

Profit, services

(pollinating)

For living, services,

profitPerspective Development Concentration,

specialization,

diversification

restructuring,

specialization


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Other

characteristics

The apiarian doesnt have

the possibility to practice

apiculture in an

industrialized system.

The amateur with a small

apiary (20 25 bee

families) assures the

necessary for his own

family, realizing an

exceeding to cover his

expenses. He recovers

most of expenses. Theapiarian with over 35

families, valorizes his

surplus of apiarian

products locally, in order

to have supplementary

revenue.

The apiculture is the

second profession. A

modern apiculture can be

practiced with the help

of work mechanization.

It is not profitable to

process the behave

products on his own,

because of large

investments needed.

The apiarian practices

an industrialized

apiculture, with the

help of work

mechanization. He

processes the products

and sells them directly

to clients, or by

supermarkets. He lives

together with the

family from this

revenue.

Source : BURA, M. et al., 2005

The apiculture supposes necessary competences for attending the bees depending on the season,

to feed them and to defend them from diseases, pest and other noxious factors. The apiarian has

to valorize the production in profitable conditions, and to realize profit. Apiculture supposes

collaboration with agricultural producers. Concentration, mobilization, tenacity, courage,

working under stress because of the weather, are a few of the necessary abilities of an apiarian.

Among the most important activities of apiarians are the following:

Drawing up the plan for incomes and outcomes in the apiary

Identifying sources of financing

Preparing bee families for winter

Organizing spring work in the apiary


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Organizing pastoral apiary

Multiplying bee families

Assuring the health condition of bees

Harvesting and conditioning apiarian products Valorizing apiarian products

Identifying potential clients for apiarian products

The apiarian firms have to valorize and develop the internal resources, assuring the promotion of

Romanian firms on the internal market and the attraction of investors. Promoting a partnership

with managers from economically developed countries has the purpose to increase the

cooperation in order to raise the competitiveness of Romanian firms, on the internal and external

market. The Romanian government has to encourage new apiarian firms by financial aid,

consultancy and training activities.

Approximately 50% of the honey consumed at a national level is commercialized through retail

magazines (around 5000 tones/year). At national level, there are 10 private brands developed by

6 retailers and 27 products. The great majority are manufactured by local producers. Apicola

Pastoral Georgescu andApidava are the only Romanian producers in a private brand. Apidava is

the only national product or ecological honey present in supermarket chains (FRSINEANU, F.,

2010).

Industrial apiary is based on modern and efficient modern technologies which determine a high

level of apiarian production, low costs and minimum work volume. The industrial apiary is the

concentration, intensification and rationalization of apiarian production (VLCEAN, C., 2007).

The industrial apiary leads to high qualitative and quantitative apiary production. Geo climate

conditions, the rich and diverse melifer and pollen basis in Romania creates a wonderful

opportunity to practice and extend industrial apiary. In order to manage an industrial apiary,

there are a series of organizational and technical methods like: the attendance of beehives

respecting specific conditions, principles and work methods. The apiaries have to be installed at

certain distance from the center of the farm, having access roads and modern ways of

communication. The seat of the farm has a hall where the extraction and processing of products


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takes place, with modern technological lines, various equipment, storage space, workshops,

garages and offices.

CHAPTER III

3.1.RESEARCHES CONCERNING THE MARKETING OF GI PRODUCTS

-

Being knowledgeable about markets, marketing channels, consumer demands, selling and

competition, in other words marketing, can reduce the risk of business failure and increase


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chances of generating income and profit for the GI organization and its members. Profits will

enable the GI system, its organization and members to survive in the long-term as costs will be

covered, remuneration for its members will be earned and

investments for the future can be made.

However, marketing of GI products represents a challenge: Marketing must be considered from

the point of view of the GI organization (collective marketing), as well as from the point of view

of its members (individual marketing). Importantly, marketing carried out needs to be integrated

between these two levels. Further quality aspects, territory, social and cultural issues as well as

other related economic sectors, such as tourism, also need to be considered in the marketing of

GI products.

3.1. Organizational System GI producers

Setting-up collective rules for GIs strengthens the links between local stakeholders, especially

when marketing their product. This common interest creates interdependence, and thus become

the foundation for collective actions.

To create value for consumers and income for producers, the GI production system, like for most

value chains, involves a series of activities undertaken by stakeholders owning different assets.

However, unlike most value chains, all members of the GI production system share a common

asset: the GIs reputation. This common asset justifies a specific coordination structure,

representative of all the members of the GI production system. Indeed, the commercial behaviour

of each producer has an effect on the reputation of the GI; as well this collective reputation

impacts each producer.

Collective initiatives can increase benefits and reduce the costs of using the GI for marketing the

product. All professional categories of the supply chain should agree on giving responsibilities to

a common structure in order to contribute to maintaining quality and reputation, and thus,

increasing the value of their GI products.

Roles and activities of a GI organization


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It is important to take into account that GI producers are often involved in the production and

marketing of different products (the GI product as well as others), while the GI organization

focuses its marketing on only the GI product.

The activities that the GI organization can carry out to support the GI system are manifold. The

GI organization may enable the reaching of agreements among local producers on questions

related to production systems and marketing strategies. Usually, the GI organization manages the

control system (directly or indirectly) to guarantee the quality level of the GI products for

producers and consumers according to the code of practice. Other important and frequent

activities of the coordination structure are related to the collective market promotion of the

product and. In some cases, the organization directly manages some production or other

activities such as final processing, and classification or packaging of the product.

The organization structure

The organization should represent all the stakeholders of the GI production system.

A formal definition of the organizations structure is necessary and can take different forms;

association, consortium, group of representatives of professional categories involved in the

production process of the GI product, cooperative or inter-professional organization. The

organization in charge of managing the GI system should be the same as the group applying for

the GI legal protection and it should incorporate the lessons learned during the GI application

phase.

This organization may include stakeholders active at different levels of the GI supply chain: raw

material producers, primary processors, secondary processors, and when relevant to the GI

system, middlemen or distributors (See figure 1). In principle, the organization should represent

all categories included in the code of practice and in a way it represents all types of actors within

the category. Normally, these categories nominate their representatives to the organization.

Producers belonging to the GI value chain delegate certain responsibilities to the collective

representative organization, depending on the objectives they have. The collective actions

complement individual entrepreneurial actions and do not replace them. All members maintain

their financial autonomy, remain owners of their assets, trade with partners of their choice and

retain a level of technical freedom within the code of practice


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Figure 1: Example of a GI inter professional organization

EXAMPLES OF ACTIVITIES AND SERVICES THE GI ORGANIZATION MAY PROVIDE

RULES AND CONTROLS

Set up the local rules (code of practice) and adapt them over time.

Manage an internal control system and reduce the cost of external certification through

economies of scale and management of relations with the external certifier.

Facilitate conflict resolution and arbitrate in case of disputes over the code of practice. A

legitimate and objective representative commission can decide if practicesare compatible or not

with the code of practice.

PRODUCTION

Increase the quality of the GI product by providing technical assistance and information,

facilitating the introduction of innovations.


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Directly manage some production activities, like final processing and classification or

packaging of the product.

Reduce the individual costs of services that usually are unaffordable for most individual small-

scale firms; for example, product research and development, technical advice and information

relating to competitors and quality and production volume of the GI product.

MARKETING

Increase the bargaining power of local producers in the supply chain. The GI organization

might become a place for structured negotiations on quality and price premiums among the

different professional categories.

Elaborate collective marketing strategies; although many responsibilities such as customerrelations, the sales force, price and distribution will remain the responsibility of each producer.

Develop collective actions to reduce costs (for example market research and information and

promotion initiatives in order to gain visibility in the market).

COORDINATION, REPRESENTATIVITY and SUSTAINABILITY

Represent the GI system in the dialogue with external actors, in particular with public

authorities in charge of GI policies.

Facilitate access to firms who want to use the GI protection scheme.

Develop internal trust among producers and processors who share the use of the GI;

Provide a forum for discussing problems and opportunities to use the GI;

Improve coordination between producers and between different stages in the supply chain, thus

improving the efficiency of the value chain and the competitive position of producers.

Make proposals for orienting the evolution of the GI system towards economic, social and

environmental sustainability.

The composition and rules for running a GI organization are very important issues.

The following key principles should be taken into account:


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Representativeness in the management board of all categories of firms involved in the GI value

chain and of all types of actors within each category (for example artisan and industrial

processors, small-scale and large-scale farmers). If a category is insufficiently represented, it

might not respect the rules or may act self-interestedly.

Transparency and democracy in the decision-making processes, taking into account the

effective participation of each actor in the economic activity of the GI system.

Equitable financial contribution of each member to the GI organization, on the basis of

correspondence between costs and benefits. It is good practice to differentiate the membership

fee (unique and not too expensive) and the payment for services (that should be proportionate).

In some situations solidarity principles could apply, asking more from bigger stakeholders in

order to support smaller ones taking part in the GI organization

Participation of the local public administration in the GI organization allows greatercoordination with public policies.

Promotion of communication and networking as important dimensions of the local GI

production system organization.

As in any organization, the definition of internal rules (and their constant improvement) should

be considered, including conflict resolution mechanisms. The statute should consider good

practices, models and legal requirements provided at the national level.

It should seek advice from other previously successful organizations in the country and seek

support from specialized support agencies with expertise in rural organizations

Potential advantages and disadvantages of being part of the GI organization

Producers located in the GI delimitated area and producing the origin-linked product ave to

decide whether they want to be part of the GI organization, meaning producing and processing in

conformity with the GI code of practice and importantly using the GI for marketing the product.

Such a decision has many consequences for the producer and the decision depends on the

balance of advantages and disadvantages assoticiated with the GI.


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Generally speaking, entering the GI organization means that, while retaining autonomy, the

stakeholder contributes to and implements a GI collective strategy by coordinating with other GI

stakeholders. In terms of marketing, this means that after assessing the advantages and

disadvantages of marketing the product with a GI, the stakeholder decides to combine a

collective marketing strategy with his own strategy

3.1.1 Beekeepers organizational system in Romania

Currently in Romania there are approximately 40,000 beekeepers, which carry

work in both ways as individual beekeepers, as well as various forms of associative. These

associative are represented by associations, cooperatives, producer groups and federations,

established according to current law (Agricultural Cooperative Law, 2005).Beekeepers associations have legal personality and are represented at local, county and

national level. The main institution in Romania which controls bee products market is

Beekeepers Association (ACA). This is a professional, apolitical, autonomous, non-profit, non

governmental, private legal personality, bringing together 840 beekeepers as members. It was

founded in 1958, as a member of International Federation of Beekeeping APIMONDIA. It has

41 district branches, with technical guidance and organizational responsibilities, specialized

training and representation at national level. The structure of Beekeepers Association is working

with 39 county limited commercial companies, as well as two joint-stock companies: S.C.

Complex Apicol S.A and S.C. Institutul de Cercetare-Dezvoltare pentru Apicultur S.A (Zegrea,

E., 2006).

S.C. Complex Apicol SA is a basic economic unit which provides the basis

testing equipment for the National Beekeeping, bee products processing at higher level,

production and beekeeping equipment. The research and application foundation of the sector is

S.C. Institutul de Cercetare Dezvoltare pentru Apicultura S.A. operating since 1974 as a

research institute. The research results are implemented in production, bringing on the market

over one hundred items of veterinary drugs and stimulants.

ACA publishes a monthly magazine regarding technical and scientific information

Romania Apicola", journal founded in 1916. In 2010, the ACA acomplished a production of 9


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228 718 RON, and export production of 1 064 829 EURO, more than 647 tones of honey being

exported mainly to countries of the European Union and the US.

In addition to this important association, after 1990 in Romania were established other

associative forms of beekeepers, processors and other participants in the beekeeping pathways.

So far in Romania there are, over 10 beekeepers associations, more than 20 processing units

sanitary veterinary approved for honey and bee products processing, two producer groups

recognized under the current legislation, over 10 types of such cooperative association and an

association of beekeepers federation.

Upstream, the beekeeping sector is represented by over 15 companies producing

equipments and supplies for beekeeping, as well as companies specialized in providing

informative materials regarding the current law for beekeeping.

3.2. Strategic and operational marketing

Marketing encompasses all the tasks that are needed to sell. It is usually written down in

terms of a marketing plan. The plan aims is to reach consumers according to market


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opportunities, taking into account the potential and limitations of the GI product, the production

organization and individual producers involved.

The plan is usually divided into two main parts; strategic and operational. The strategic

side constitutes the road map, which gives direction to the marketing effort and addresses such

questions as: Who to sell to? And where to sell? These questions are usually answered by an

attentive analysis of consumers, opportunities and threats found in markets and the business

environment and the strengths and the weaknesses of the GI organization and its individual

members.

The operational side of the plan looks at implementing the strategy and addresses such questions

as: How to sell? And when to sell? (This is commonly referred to as the marketing mix. The

operational plan simply means organizing the marketing strategy to sell the GI product. For

example, will the product be directly sold to consumers via on farm visits, or to wholesalers,exporters and retailers and promoted at food fairs? This part of the plan is primarily about who

will do what in terms of making the marketing strategy become real and who will be responsible.

Marketing planning is essential both at the collective level (GI organization) and at the individual

level (firm), and a right balance and coherence have to be ensured between them, depending on

the concrete situation of the GI system. In some situations, GI firms are well structured and

organized and they have clearly defined their marketing strategy.

In this case, the GI organization may intervene on specific tasks where it is more effective to

work collectively, for example in market analysis. In other situations, especially for small-scale

GI producers with limited capacity and resources, the collective organization may define the

whole marketing plan by enhancing the participation of all categories of stakeholders in its

preparation. In this case, stakeholders should build their marketing plans on the framework of the

collective plan.

Commonly, relationships between each individual producer and the GI collective organization

and other GI producers is a mix of competition and collaboration (co-opetition). This will define

how each producer will integrate his or her own marketing strategy with the collective one and

how much each will differ from those of other GI members.


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3.2.1 Developing a strategic marketing plan

The strategic marketing plan helps define long and short term strategies. It defines market

objectives on the basis of potentials, limitations, market characteristics, competitors, etc. For GI

Master Dizertatie Finala2

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