The EU Food Label 'Protected Geographical Indication': Economic Implications and Their Spatial Dimension

Abstract

This study analyses the economic effects of the EU policy on the protection of origin. The focus is on three types of food products with Protected Geographical Indication (PGI), whose reference areas are located in the Free State of Bavaria: Beer (Bayerisches Bier PGI), asparagus (Franken-Spargel PGI, Schrobenhausener Spargel PGI), and carp (Aischgründer Karpfen PGI, Oberpfälzer Karpfen PGI). The study is based on secondary statistical analysis and a series of expert interviews. The results show positive effects on sales mainly for beer on international markets, and positive effects on price mainly for carp on the local and regional levels. All in all, we see that protection of origin stabilizes and supports the economic trajectory of its product. This study also shows that its economic effects vary widely: Firstly, price and sales effects are not automatic and differ in intensity; and secondly, the spatial dimensions of the economic effects exhibit different patterns. The primarily price-related effects at the local–regional level for carp (and to some extent for asparagus) are categorized as local effects (type A). The sales effect at the global level for beer is categorized as type B (export effect). Finally, this study postulates further potential forms of 'price and sales geographies'.