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Geographical Indications of Origin as a Tool of Product Differentiation: The Case of Coffee

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  • Teuber, Ramona

Abstract

An increasing interest in geographical indications of origin (GIs) as a tool of product differentiation can be observed in the so-called specialty coffee sector. Similar to the approach for wine in France and Italy, more and more coffee-producing countries try to establish appellations systems for coffee. Whereas some countries and regions such as Colombia or Jamaica have already legally protected GIs for coffee, most coffee GIs are still informal meaning that no legal protection has been obtained so far. But the recent acceptation of the term Café de Colombia as a Protected Geographical Indication (PGI) in the EU and the Ethiopian Trademark Initiative document the increasing engagement of coffee-producing countries to achieve an appropriate legal protection for their GIs. From an economic point of view, data from US online retail stores indicate that single-origin coffees receive significant higher retail prices, with 100% Kona coffee from Hawaii and Jamaican Blue Mountain coffee being the most expensive ones. Furthermore, results from a hedonic pricing model based on internet auction data for single-origin coffees show that the country and the region of origin is already an important determinant of prices paid by importers and roasters.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 105th Seminar, March 8-10, 2007, Bologna, Italy with number 7866.

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Date of creation: 2007
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Handle: RePEc:ags:eaa105:7866

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Keywords: Geographical Indications of Origin; coffee; legal regulatory systems; price premium; hedonic pricing analysis; Marketing;

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References

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  1. Donnet, M. Laura & Weatherspoon, Dave D., 2006. "Effect of Sensory and Reputation Quality Attributes on Specialty Coffee Prices," 2006 Annual meeting, July 23-26, Long Beach, CA 21388, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Santos, J. Freitas & Ribeiro, J. Cadima, 2005. "Product Attribute Saliency and Region of Origin: Some Empirical Evidence from Portugal," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24667, European Association of Agricultural Economists.
  3. Günter Schamel, 2007. "Auction markets for specialty food products with geographical indications," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 257-264, 09.
  4. Schamel, Guenter, 2006. "Auction Markets for Specialty Food Products with Geographical Indications," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25606, International Association of Agricultural Economists.
  5. Tim Josling, 2006. "The War on "Terroir": Geographical Indications as a Transatlantic Trade Conflict," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 337-363.
  6. G¸nter Schamel & Kym Anderson, 2003. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," The Economic Record, The Economic Society of Australia, vol. 79(246), pages 357-369, 09.
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Citations

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Cited by:
  1. Ngokkuen, Chuthaporn & Grote, Ulrike, 0. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 51.
  2. Luisa Menapace & Gregory Colson & Carola Grebitus & Maria Facendola, 2011. "Consumers' preferences for geographical origin labels: evidence from the Canadian olive oil market," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(2), pages 193-212, June.
  3. Menapace, Luisa & Moschini, GianCarlo, 2010. "Quality Certification by Geographical Indications, Trademarks and Firm Reputation," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61778, Agricultural and Applied Economics Association.
  4. Verbeke, Wim & Pieniak, Zuzanna & Guerrero, Luis & Hersleth, Margrethe, 2012. "Consumers’ Awareness and Attitudinal Determinants of European Union Quality Label Use on Traditional Foods," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
  5. Teuber, Ramona, 2008. "Geographical Indications and the Value of Reputation - Empirical Evidence for Cafe de Marcala," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43835, European Association of Agricultural Economists.
  6. Aslihan Arslan & Christopher P. Reicher, 2011. "The Effects of the Coffee Trademarking Initiative and Starbucks Publicity on Export Prices of Ethiopian Coffee," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 20(5), pages 704-736, November.
  7. Giovannucci, Daniele & Josling, Timothy & Kerr, William & O'Connor, Bernard & Yeung, May T., 2009. "Guide to Geographical Indications: Linking Products and Their Origins (Summary)," MPRA Paper 27955, University Library of Munich, Germany.
  8. Jena, Pradyot R. & Grote, Ulrike, 2012. "Impact Evaluation of Traditional Basmati Rice Cultivation in Uttarakhand State of Northern India: What Implications Does It Hold for Geographical Indications?," World Development, Elsevier, vol. 40(9), pages 1895-1907.
  9. Neetha, Rose C.D. & Kotrakerebasegowda, Umesh, 2012. "Expectations towards Geographical Indications-Empirical Evidence from India," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126324, International Association of Agricultural Economists.
  10. Galtier, F. & Belletti, Giovanni & Marescotti, Andrea, 2008. "Are Geographical Indications a way to "decommodify" the coffee market?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43834, European Association of Agricultural Economists.
  11. Chuthaporn Ngokkuen & Ulrike Grote, 2012. "Challenges and opportunities for protecting geographical indications in Thailand," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 93-123, December.
  12. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.

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