Local to global: provenance branding and farmer co-operation for high value export markets

Abstract

Recent research funded by the Rural Industries Research and Development Corporation (RIRDC) highlighted the potential for farmers to improve farm gate returns through both provenance branding and collaboration with other farmers. Building on these findings, this report examines opportunities in export markets, and the legal and regulatory implications of alternative collaborative and provenance brand protection options. This report places a particular focus upon collaboration around the production, marketing and promotion of high-value, consumer-oriented local food products. Its findings are applicable to producers of fruit, quality vegetables, processed meats and dairy products such as yoghurt and cheese, or beverages such as local whiskeys, beers and ciders. When these farmers invest in special food and beverages that have a local character and back-story, they can move up the value chain and closer to consumers. This allows them to capture a higher percentage of the final price paid to retailers. To do this effectively, however, farmers must be well-organised with a secure legal footing that is adapted to their plans, their region and their product. Collaborative groups of farmers must also have an effective branding strategy in place in order to prevent ‘free-riders’ taking advantage of the reputation developed around a specific value-added local product. Understanding the regulatory environment in international markets in which Australian farmers may participate is critical if the branding of Australia’s regionally produced food is to be effectively protected and its value realised. Increasingly, more countries (including in Asia) are using the legal regime of Geographical Indication (GI) registration for provenance branding. Australia has this option in place for wine but not for other foods. It is important that Australian industry and government decision makers carefully evaluate the benefits of introducing a widely-based GI system, including its potential to encourage farmers to work together effectively around product quality and locality branding. This report is an addition to RIRDC’s diverse range of over 2000 research publications and it forms part of our National Rural Issues R&D program. This program aims to inform and improve policy debate by government and industry on national and global issues relevant to agriculture and rural policy in Australia, by targeting current and emerging rural issues, and producing quality work that will inform policy in the long-term.