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Determinants of Adoption of Protected Designation of Origin Label: Evidence from the French Brie Cheese Industry

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  • Zohra Bouamra‐Mechemache
  • Jad Chaaban

Abstract

This paper investigates empirically the determinants of agro‐food firms’ adoption of the Protected Designation of Origin (PDO) label. A unique dataset containing firm‐level cost and production information on the French Brie cheese is used, covering the period 1980–2000. The Brie cheese data are especially relevant as PDO Brie producers have coexisted with other non‐PDO producers since 1981. To evaluate the producers’ incentive to opt for PDO certification, we use a structural switching regression model which incorporates cost and production structure variables. Results show that PDO certification is less attractive the higher the costs of raw materials and the greater the size of the company. PDO Brie cheese production costs are estimated to be on average 40% higher than those for non‐PDO Brie. The PDO production process could be technically inefficient when compared with the unconstrained non‐PDO manufacturing; yet, PDO producers benefit from a price premium on their product which offsets their higher production cost.

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  • Zohra Bouamra‐Mechemache & Jad Chaaban, 2010. "Determinants of Adoption of Protected Designation of Origin Label: Evidence from the French Brie Cheese Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 225-239, June.
  • Handle: RePEc:bla:jageco:v:61:y:2010:i:2:p:225-239
    DOI: 10.1111/j.1477-9552.2009.00234.x
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    Cited by:

    1. Bouamra-Mechemache, Zohra & Chaaban, Jad, 2010. "Is the Protected Designation of Origin (PDO) Policy Successful in Sustaining Rural Employment?," 116th Seminar, October 27-30, 2010, Parma, Italy 94987, European Association of Agricultural Economists.
    2. Di Vita, Giuseppe & D'Amico, Mario, 2013. "Origin Designation And Profitability For Small Wine Grape Growers: Evidence From A Comparative Study," Economics of Agriculture, Institute of Agricultural Economics, vol. 60(1), pages 1-18, March.
    3. Duvaleix, Sabine & Emlinger, Charlotte & Gaigné, Carl & Latouche, Karine, 2021. "Geographical indications and trade: Firm-level evidence from the French cheese industry," Food Policy, Elsevier, vol. 102(C).
    4. Hilal Mohamed & Duboys de Labarre Matthieu & Drut Marion & Bellassen Valentin & Leedon Guy & Antonioli Federico & Boehm Michael & Péter Csillag & Donati Michele & Ferrer-Pérez Hugo & Gil José Maria & , 2021. "Organic and Geographical Indication Certifications’ Contributions to Employment and Education," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 19(2), pages 161-176, December.
    5. Santeramo, Fabio Gaetano & Manno, Roberto & Tappi, Marco & Lamonaca, Emilia, 2022. "Trademarks and Territorial Marketing: Retrospective and Prospective Analyses of the trademark Prodotti di Qualità," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 24(1), June.
    6. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2010. "Firm Survival and Quality Labels in the Food Industry," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61377, Agricultural and Applied Economics Association.
    7. Christian Garavaglia & Paolo Mariani, 2017. "How Much Do Consumers Value Protected Designation of Origin Certifications? Estimates of willingness to Pay for PDO Dry‐Cured Ham in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 403-423, June.
    8. Bouamra-Mechemache Zohra & Chaaban Jad, 2010. "Protected Designation of Origin Revisited," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-29, August.
    9. Jianyu Yu & Zohra Bouamra-Mechemache, 2016. "Production standards, competition and vertical relationship," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(1), pages 79-111.
    10. Diez-Vial, Isabel, 2011. "Geographical cluster and performance: The case of Iberian ham," Food Policy, Elsevier, vol. 36(4), pages 517-525, August.
    11. Sabine Duvaleix-Treguer & Charlotte Emlinger & Carl Gaigné & Karine Latouche, 2018. "On the Competitiveness Effects of Quality Labels: Evidence from the French Cheese Industry," Working Papers hal-01925630, HAL.
    12. Wun-Ji JIANG & Yir-Hueih LUH, 2018. "Does higher food safety assurance bring higher returns? Evidence from Taiwan," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(11), pages 477-488.
    13. Mathieu Lambotte & Stéphane de Cara & Catherine Brocas & Valentin Bellassen, 2021. "Carbon footprint and economic performance of dairy farms: the case of protected designation of origin dairy farms in France [Bilan carbone et performance économique des exploitations laitières : le," Post-Print hal-03021963, HAL.
    14. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," IDEI Working Papers 741, Institut d'Économie Industrielle (IDEI), Toulouse.
    15. Cei, Leonardo & Stefani, Gianluca & Defrancesco, Edi, 2021. "How do local factors shape the regional adoption of geographical indications in Europe? Evidences from France, Italy and Spain," Food Policy, Elsevier, vol. 105(C).
    16. Garavaglia, Christian & Mariani, Paolo, 2015. "How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy," 145th Seminar, April 14-15, 2015, Parma, Italy 200376, European Association of Agricultural Economists.
    17. Lambotte, Mathieu & De Cara, Stéphane & Brocas, Catherine & Bellassen, Valentin, 2021. "Carbon footprint and economic performance of dairy farms: The case of protected designation of origin farms in France," Agricultural Systems, Elsevier, vol. 186(C).
    18. Bouamra-Mechemache, Zohra & Yu, Jianyu, 2011. "Quality Choice, Competition and Vertical Relationship in a Market of Protected Designation of Origin," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103607, Agricultural and Applied Economics Association.
    19. Alessandro Bonadonna & Giovanni Peira & Chiara Giachino & Luana Molinaro, 2017. "Traditional Cheese Production and an EU Labeling Scheme: The Alpine Cheese Producers’ Opinion," Agriculture, MDPI, vol. 7(8), pages 1-13, August.
    20. Zohra Bouamra & Vincent Chatellier & Angela Cheptea & K Hervé Dakpo & Yann Desjeux & Sabine Duvaleix-Treguer & Carl Gaigné & Marilyne Huchet & Philippe Jeanneaux & Karine Latouche & Laure Latruffe, 2018. "La compétitivité des filières animales françaises," Working Papers hal-02439979, HAL.
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    24. Dou Jiangli & Ye Bing, 2018. "A Note on Cournot Competition in Differentiated Oligopolies," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 18(1), pages 1-8, January.

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