European Geographical Indicators Valued at More Than $80 Billion

A study from the European Commission found that extra virgin olive oils make up $326 million of the total value of European geographical indicators. PDO and PGI oils from Spain and Italy account for nearly 40 percent of that amount.

Baena, Spain
By Daniel Dawson
Apr. 29, 2020 07:11 UTC
Baena, Spain

European Union prod­ucts labeled with a geo­graph­i­cal indi­ca­tion are worth €74.76 bil­lion ($80.74 bil­lion), accord­ing to a recent study from the European Commission.

More than one-fifth of this value is derived from exports of prod­ucts with a Protected Geographical Indicator or a Protected Designation of Origin.

Producers’ ben­e­fits are clear… Geographical indi­ca­tions pro­tect local value at a global level.- Janusz Wojciechowski, European agri­cul­ture com­mis­sioner

European geo­graph­i­cal indi­ca­tions reflect the wealth and diver­sity of prod­ucts that our agri­cul­tural sec­tor has to offer,” Janusz Wojciechowski, the European agri­cul­ture com­mis­sioner, said. By pro­tect­ing prod­ucts across the globe, we pre­vent fraud­u­lent use of prod­uct names and we pre­serve the good rep­u­ta­tion of European agri-food and drink prod­ucts.”

Oils and fats account for roughly €555 mil­lion ($599 mil­lion) of the total value of geo­graph­i­cal indi­ca­tors, an increase of 59 per­cent from 2010. PDO prod­ucts, specif­i­cally, have con­tributed to 80 per­cent of the growth in value.

See Also:Geographical Indicators

The dri­ving force for growth in the oil and fats cat­e­gory has been both PDO and PGI extra vir­gin olive oils.

Olive oils are the largest sub­cat­e­gory of oils and fat prod­ucts under geo­graph­i­cal indi­ca­tors account­ing for 54 per­cent of the 2017 sales value and half of the growth,” the report says.

Overall, sales of PGI and PDO extra vir­gin olive oils have grown from €204 mil­lion ($221 mil­lion) in 2005 to €301 mil­lion ($326 mil­lion) in 2017. The entire oil and fats cat­e­gory grew from €259 mil­lion ($280 mil­lion) to €555 mil­lion, in the same time period.

Extra vir­gin olive oils with geo­graph­i­cal indi­ca­tors in Spain rep­re­sented 25 per­cent of the sales value and one-third of the growth. The country’s three largest PDO oils – Baena, Siurana and Sierra de Cazorla PDO – helped to lead the way.

Italian PDO and PGI oils made up another 14 per­cent of sales value and con­tributed to two per­cent of the growth. Terra di Bari PDO, Toscano PGI and Val di Mazara PGI, the three largest geo­graph­i­cal indi­ca­tors in the coun­try, also con­tributed sub­stan­tially to the growth.

A sep­a­rate report out of Italy found that the value of PGI and PDO oils has steadily risen to €144 mil­lion ($155 mil­lion) and exports have reached €62 mil­lion ($67 mil­lion).

However, even as European geo­graph­i­cal indi­ca­tors for olive oil have risen steadily in value, they have expe­ri­enced a sig­nif­i­cant decrease in their value pre­mium rate – the sales value of a prod­uct with a geo­graph­i­cal indi­ca­tor rel­a­tive to a com­pa­ra­ble stan­dard prod­uct with­out one.

In 2010, olive oil was one of the prod­ucts with the high­est value pre­mium rates (1.83); in 2017, it reduced to 1.04,” the report said. This change was caused by a reg­u­lar and impor­tant rise in the stan­dard prices of vir­gin olive oil.”

Overall, value pre­mium rates among European prod­ucts with geo­graph­i­cal indi­ca­tors have dropped from 2.14 to 2.07 since 2010.

In spite of this decrease in value pre­mium rates, Wojciechowski empha­sized that the geo­graph­i­cal indi­ca­tor scheme con­tin­ues to ben­e­fit pro­duc­ers.

Producers’ ben­e­fits are clear. They can sell prod­ucts at a higher value, to con­sumers look­ing for authen­tic regional prod­ucts,” he said. Geographical indi­ca­tors are a key aspect of our trade agree­ments. Geographical indi­ca­tions pro­tect local value at a global level.”


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