North America’s First AOC Policy A Québec «research» Story Cheese & Fromage: Common Cultures 28th Annual ACS Conference & Competition August 3-6, 2011 Montréal Rémy Lambert Ph.D. Fabien Jouve Doctorant Somewhere in Normandie, France Son, we’ll miss you, Dad, mom, I you were the best in am leaving, I To beginmaking with tortillas…. somewhere in in Normandie found a job in the whole Normandie, a Camenbert but since this is your factory in wish, go and discovers Australia… the diversity of the world…… Québec agrifood sector : facing an international market The international agrifood sector is highly concentrated economically and it is increasingly Global Average weight of the «Top 100» en 2000: 9MM$, 33000 workers, 80 subsidiaries in 20 countries (Rastoin, 2003) USA: 40000 900MM/2000MM Japan: 11000 • According to Guigou (1997), the globalisation of the economy implies an increase in the desire of people to consume local food Québec agrifood sector : facing an international market • Markets Globalization has led to two systems • @territorial for multinationals seeking to locate in places where production costs are the lowest • Territorial space that emphasizes local appertaining (« terroir ») The concept of « terroir » « Terroir » is a social construct resulting from the combination of: Ø Coordination of actors (food chain); Ø Territorial resources. The literature emphasizes that «terroir» is created by the interaction of agents and the relationships they maintain « Its the taste of place » (Amy Trubek, U of Vermont) The concept of « terroir » Product The product is specific but also Specific unique by its combination of quality and natural and human factor, reputation anchored in a territory. People Place (terroir) Motivations & Local natural & capacity to engage human resources: in a collective value soil, climate, breed, creation & varieties, know-how, preservation traditions, etc. process Cf. SINER-GI, FAO 2009 More and more producers refer to the origin of their products Bleuets du Pied de vent des Iles, Saguenay Lac Saumon sauvage de Saint Jean Gaspé, Pintade de la Veau et Agneau de Vallée du Richelieu Charlevoix Migneron de Charlevoix The origin of the product is more and more used to promote a certain quality Certification marks Several distribution More frequent and regular Collective marks networks consumer demand More and more producers refer to the origin of their products : why? Consumers are looking for authenticity Same tendency in the USA There are 3 agrifood markets Mass market Univers : Day to day Product : basic, Value : price, segmentation 80% - Innovative market Niche market Univers : healthy Univers : social Product :Nutraceutics» Product : authentic Value : technology Value: terroir 5% ++ 15% + Economic importance of «Appellations» in France (Without Label Rouge) (2009) AO Vins & AOP/AOC Eaux de vie 49 Appellations laitières Environ 364 Appellations 21 000 exploitations 75 000 exploitations (80 000 producteurs) 1.5 Md € 59,8 % de la superficie viticole totale (hors Cognac et Armagnac) 48 % de la récolte française de vins AOP/AOC 42 Appellations (hors Cognac et Armagnac) agroalim. Vins : 11,1 Mds €, 9 300 exploitations Eaux de vie : 2 Mds € 150 millions d’€ IGP Plus de 150 vins de pays 100 IGP agroalim (chiffre 2011) 26,7 % de la récolte française de vins 17 000 exploitations (hors volailles et œufs) 2 cidres 1,2 Md € Adapted from JL Buër Why engage in an origin based collective process ? • Market access/ market segmentation • Rural and regional development • Preserve and transmit a resource (natural and/or cultural). Adapted from Sylvander et al., 2005, 2006 (ex: Volaille Chantecler) Element influencing the success of the designation Reserved designation is a shared responsability : public legislator, economic agents (development officers, producers, etc) and consumers. üStrong quality based policy; üPublic body (CARTV); üRole of the government for promoting and protecting reserved designation; üA voluntary and collective process (engagement); üStrict Standard (Code of practice), elaborated by the producers Main success factors concerned by the designation The Origin-based quality virtuous circle Reproduction of local resources Identification: local awareness and reinforcing the sustainability of assessment of product potential the system Product remuneration linked to Product qualification: setting up the rules the marketing aspects for the value creation and preservation of local resources Public policies providing the institutional framework and possible Cf. SINER-GI, FAO 2009 support for all stages of the circle (Lois et règlements: LARTV, A-20.03) Projet CN, Prgm TRANSAQ Our research efforts for the past two years It’s the first and most important step of all. Awareness of the potentialities linked to specific local resources → This is the basis for the collective action. It is also the place were scientific competencies are needed. Based on SINER-GI, FAO 2009 Our research efforts for the past two years At this stage, several questions need to be addressed. From my point of view, the most important are: • What are the links between local product, place and people? • Is there a potential for promoting an origin-based product in a sustainable perspective? • How to establish collective action? Which actors can be involved: internal or external to the production system and territory? Cf. SINER-GI, FAO 2009 Two Strategic configurations Strategic configuration controlled by the downstream (Private strategy): • Strategy controled by a group of industrials; • Products are identified by a trademark owned by industrials; • Products are intended for mass markets. Strategic configuration controlled by the upstream (Collective strategy): • Strategy controled by a group of producers; • They proclaim and promote the origin of the product; • Products are intended for niche markets. Form the consumer point of view, the Origin of the product plays the same role as atrademark (reputation, image, attitude, loyalty…) → Managing the appellation Balancing trademark and collective mark Success factors Consumers Market (Relevance) Context Project Legal Crisis, (Consistency of the Framework Etc.. collective action) (motivation) Adapted from Sylvander et al. 2003 North-Shore study (Côte-Nord) Montréal North-Shore study (Côte-Nord) We developed a method to analyse the potential for any agricultural and marine product to be considered a reserved designation (AO and IGP) : This method allows us to diagnose the situation of an industry interested in developing a strategy oriented on Origin-Based products The methodology uses a two-step approach 1) Is it relevant? 2) Is it feasible? North-Shore study (Côte-Nord) Ø Relevance : What are the factors that justify the project Ø specificity, history, notoriety and reputation (known for its features). Based on the interpretation of the law and rules concerning the terrorial reserved designation of the CARTV (référentiel) Ø Feasibility : What are the factors that facilitate the realisation and sustainability of the project Ø interest of the industry actors, collective action, issues for regional and local development. What are the success factors? Methodology 1. Litterature review ex. : Scheffer (2002) ex. : Barreau du Québec (2009) 2. Analysis of the criteria (15) and sub criteria ex. of criteria: What is the current product? Denomination Specificity of the product (natural factors and know-how) What is the link to the «terroir» 3. Typology and recommendation The 12 steps field research 1. Literature review on local (regional) products 2. Steering Committee 3. First round of data collection (experts) 4. Identification of a pool of products 5. Analysis grid 6. Interview guideline and tests 7. Data collection (industry) 8. Analysis of the potential 9. First results presentation and discussion with Steering Comittee 10. Presentation to the Industry 11. Discussion of interest and what should be done 12. Final publication Methodology: case studies 1. We worked with the stakeholders (development officers, producers and CARTV) 2. North-Shore region 14 products (marine and agricultural) 3. Interview (≈ 2h) 4. Data collection (50) 5. Analysis and results Results 1. Exploratory phasis: identification of the products Wild bluberry Scallop of Minganie Chicoutai Northern shrimp Cranberry Snow Crab Raspberry Dried salt cod Strawberry Greenland halibut Airelle vigne d'Ida Mye Scallop (giant) Surf clam Results 2. Results • Scallop of Minganie • Sept-Îles Shrimps • Dried salt cod Certification • Côte-Nord Berries mark • Marine products NC • … Results Sept-Îles shrimp (IGP) or on bord cooked shrimp (AS) : Why ? ü Specific Resource : § Geographic denomination or specificity; § Processing Know-how (on bord cooking); § History and tradition; § reputation. ü Fishermans have a great interest for the project and regrouping ü Development issues: better product identification on the market, sustaining expertise threatened, reappropriation of a name (IGP case) Results La Chicoutai : Why not ? ü Pertinence factors: § History and processing tradition; § Reputation, link to the region ; But: § No geographic denomination; § No comparable product. ü Faisability factors: § What are the benefits to have an appellation since there is only one region producing it ? Appellation : It is not only a promotion tool, but secures and protects La tournée des régions (projet pilote 2009-2010) 1. Basse, Moyenne et Haute-Côte-Nord (projet en cours) 2. Québec et Chaudière-Appalaches 3. Gaspésie, Îles de la Madeleine et Bas-Saint-Laurent 4. Saguenay Lac-Saint-Jean, Mauricie, Abitibi (projets à venir) 5. Centre-du-Québec, Estrie, Montérégie 6. Laval, Lanaudière, Laurentides 7. Montréal, Outaouais Maïs de Neuville Sirop d’érable Fraises de l’Île d’Orléans Fromages de l’Ile aux grues Jeune bœuf Ch-App. Merci Rémy Lambert, Ph.D. [email protected] 418 656 2131 poste 3254 Fabien Jouve, FSAA, doctorant [email protected] 418 656 2131 poste 4120.