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


  • Teuber, Ramona


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.

Suggested Citation

  • Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation: The Case of Coffee," 105th Seminar, March 8-10, 2007, Bologna, Italy 7866, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa105:7866

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    References listed on IDEAS

    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).
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    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, September.
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    Cited by:

    1. Teuber, Ramona & Herrmann, Roland, 2012. "Towards a differentiated modeling of origin effects in hedonic analysis: An application to auction prices of specialty coffee," Food Policy, Elsevier, vol. 37(6), pages 732-740.
    2. 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.
    3. 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.
    4. Dreyer, Heiko & Anders, Sven M., 2014. "Experience matters - trade duration and survival of coffee exports," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182758, European Association of Agricultural Economists.
    5. 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.
    6. 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.
    7. Verena Otter & Bianca Prechtel & Ludwig Theuvsen, 2014. "The Country-of-Origin Effect for Chocolate made from Ecuadorian Cocoa: An Empirical Analysis of Consumer Perceptions," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 16(3), pages 43-60.
    8. Otter, Verena & Prechtel, Bianca & Theuvsen, Ludwig, 2014. "Der Country-Of-Origin-Effekt In Der Wahrnehmung Deutscher Verbraucher Von Schokolade Aus Ecuadorianischem Kakao: Herkunftsangaben Als Differenzierungspotential Für Lebensmittel Aus Außereuropäischen L," Discussion Papers 168526, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    9. 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.
    10. Arslan, Aslıhan & Reicher, Christopher Phillip, 2010. "The effects of the Coffee Trademarking Initiative and Starbucks publicity on export prices of Ethiopian coffee," Kiel Working Papers 1606, Kiel Institute for the World Economy (IfW).
    11. 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.
    12. 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.
    13. Luisa Menapace & GianCarlo Moschini, 2012. "Quality certification by geographical indications, trademarks and firm reputation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(4), pages 539-566, September.
    14. 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.
    15. 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.
    16. 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.
    17. Karen L. Orengo-Serra, 2015. "Niche strategy and international growth: Comparing Puerto Rico and Corsica SMEs in the Specialty food industry," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 17(3), pages 57-88.
    18. 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.
    19. Hoehn, John P, 2016. "Costly Choices: Does the U.S. Retail Market Reward Coffee Origin Labeling?," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235891, Agricultural and Applied Economics Association.


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