Darin A. Sukha (Ph.D.)Cocoa Research Centre

The University of the West IndiesSt. Augustine.

http://www.cocoacentre.com; http://www.cacaocentre.com.

World Cocoa Foundation – 2nd Annual Seminar on Cocoa in the AmericasTheme Fine Flavour and Quality

7-8 September 2015San Salvador, El Salvador

Geographical Indications -Opportunities and Limitations

Outline

• Understanding GIo “Big money”o Historicalo Philosophicalo Formal definitions and Legal framework

• Using Blue Mountain Coffee experiences as an example for cocoao Opportunitieso Limitations

• Way forward for cocoa

Linking product to origin is big business…

• Significant markets exist - especially in more affluent countries and emerging markets:o + US$50 Billion in global sales of GI products annuallyo Scotland, Australia, China and Chile have +US$1 Billion in GI

exportso (Mexico) Tequila exports: + US$ 725 Milliono (Jamaica) Blue Mountain Coffee: + US$ 24 Milliono Cocoa: untapped potential…

• Significant price differentials to be derived from origin linked productso For coffee it ranges from US$ 9 – US$ 43/pound

A historical understanding of GI

Historical association of special high value goods to their origin

• Silk and Ceramics from India and China• Salt and Coffee from Ethiopia • Ivory an Gold from Africa• Cedar from Lebanon• Porcelain from Dresden

A philosophical understanding of GI

The Quality Tree

• Like a tree, GI take their strength from:

o The LAND

o The CLIMATE

o The PEOPLE nourishing and protecting them

o The trunk represents the intrinsic QUALITY that resides inside and anchors this tree to the people and land where it grows

Roots to grow a Geographical Indication• Origin

o Linking place to product

• Traditiono Mixing practices and know how –

Tradition

• Peopleo All these coming together to create a

product with a special link to the region

• Protectiono Reassuring consumers and producerso Soil, Climate, Know-how, Special

breeds or Varieties

What products can GI be used for?

• Geographical indications are typically used for agricultural products, foodstuffs, wine and spirit drinks, handicrafts and industrial products.

A more formal understanding

Formal definitions and the legal framework

• A sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.

• The sign must identify the product as originating in a given place.

• The qualities, characteristics or reputation of the product should be essentially due to the place of origin and/or process.

• There is a clear link between the product and its original place of production.

What is a Geographical Indication?

Schemes for designations of origin, GI and traditional specialities allow…

• Products to bear quality marks that enhance their prestige.

• Consumers can easily recognise them by their logos.

• Names often need to be protected from imitation, faking or fraud.

Geographical Indications

Trade Marks

Collective Marks

Branding

Product Name

Think of walls to protect quality…

Control over origin-linked names are achieved via

• Labelling Laws and Listing Schemeso Unfair competition lawso Consumer protection lawso Labelling lawso Marketing and Publicity listing schemes linked to

reputation

• Trade Markso Distinctive non deceptive signs to distinguish product

Individual trade marks Collective trade marks Certification marks

Individual Trade Marks

• Individual Trade Marks are recognizable signs, designs, or expressions which identifies products or services of a particular source from those of others.

• They distinguish the product as being owned by a specified natural or legal person and apply to firms or single organisations.

Collective Marks

• Collective marks are usually defined as signs which distinguish the geographical origin, material, mode of manufacture or other common characteristics of goods or services of different enterprises using the collective mark.

• The owner may be either an association of which those enterprises are members or any other entity, including a public institution or a cooperative.

Certification Marks

• Certification marks are usually given for compliance with defined standards, but are not confined to any membership.

• They may be used by anyone who can certify that the products involved meet certain established standards and criteria.

The GI concept encompasses the following ‘marks’ as well…

Protected Designation of Origin (PDO)

• Means a product is produced, processed and prepared in a specific geographical area using the recognised know-how of local producers and ingredients from the region concerned.

Protected Geographical Indication (PGI)

• Identifies a product whose quality or reputation is linked to the place or region where it is produced, processed or prepared.

• The ingredients used need not necessarily come from that geographical area.

• These products must adhere to a precise set of specifications and bear this logo for ease of recognition.

Traditional specialities guaranteed

• Focuses on tradition by recognising that a product has a traditional composition or production method that are not linked to a geographical area.

The legality behind these definitions and marks

Laws and Treaties – WIPO, WTO, TRIPS

• International trade made it important to try to harmonize the different approaches and standards that governments used to register GIs.

• A number of international treaties were established to deal partly or entirely with the protection of geographical indications or appellations of origin.

• These treaties are administered by:o World Intellectual Property Organisation (WIPO)o World Trade Organization’s (WTO) Agreement on Trade

Related Aspects of Intellectual Property Rights (TRIPS)

Relevant treaties administered by WIPO

• Paris Convention• Madrid Agreement for the Repression of False

or Deceptive Indications of Source on Goods• Lisbon Agreement• Madrid Agreement• Protocol Relating to the Madrid Agreement• TRIPS Agreement

What rights does a GI provide• Those who have the right to use the GI can prevent

its use by a third party whose product does not conform to the applicable standards.

o E.g.: in the jurisdictions in which the Darjeeling geographical indication is protected, producers of Darjeeling tea can exclude use of the term “Darjeeling” for tea not grown in their tea gardens or not produced according to the standards set out in the code of practice for the geographical indication.

• However, a protected geographical indication does not enable the holder to prevent someone from making a product using the same techniques as those set out in the standards for that indication. o E.g. other teas

Choice of legal instrument to use for protection depends on

• Organisation of the producers

• Production capacity of producers to adhere to a specification

• Available resources to exploit the name and origin linked identity

• Proving and maintaining the link to origin

• Control requirements or regime

Geographical Indications

Trade Marks

Collective Marks

Branding

Product Name

Think of walls to protect quality…

Differences in philosophy

• The European and United States Governments have fundamental differences in philosophy as to what constitutes a "genuine" product.

Differences in Philosophy

• In Europe, the reigning theory is that of terroir, that there is a specific property of a geographical area, and that dictates a strict usage of geographical designations.

• In the United States, the naming is generally considered to be a matter of intellectual property.

Philosophical overlap• However, there is some overlap, with some American

products adopting a European way of viewing the matter. The most notable of these are crops:

o Idaho potatoes o Florida orangeso Vidalia onions

• In each of these cases, the state governments of Georgia, Florida, and Idaho registered trademarks, and then allowed their growers—or in the case of the Vidalia onion, only those in a certain, well-defined geographical area within the state—to use the term, while denying its use to others.

Opportunities

The branches to harvest from are…

• Valueo Better income for producers

• Diversity and heritage maintained

• Stronger rural areaso Reduced rural migration

• Consumerso Reassured about quality and origin

• Reinforced communitieso Developing a sense of belonging

With the right support the quality tree produces fruits…

• Origin, tradition and people

• Protection

• Economic value

• Valorisation of rural areas

• Recognition

• Social impact

• Consumer benefits

But first we need the fundamental framework to develop a GI specification

for cocoa to link to chocolate…

Three fundamental elements for GI specification development

• Forming producer groupso Push for GI must be from producerso What kind of group should they form

• Defining the product specificationo Identifying and describing the producto Precise and scientifico Defining what to excludeo Boundaries and limits established for product

• Product quality and process controlo What aspect of the product is being controlled

Origin and Traceability Specific quality of the final product Grades Production method - processing

o What is the appropriate system of control

Administrative steps required for origin linked or GI scheme

• Legal devices for protection must exist in the country

• Guidance in filling out the GI application form

• Receipt of applications from producer groups and payment of fees

• Assessment of applications for technical and marketing validity

• Checking out the production control systemo Local, Regional and ISO standards

• Checking the validity of the nameo Upholding the rights of prior users of the nameo Opposition

• Registration

• Enforcement in the marketplace

Coffee as an example for cocoa

Cocoa and Coffee compared – global perspectives COCOA COFFEE Production 4 million t 6 – 7 million t (Arabica 65 %) Post-harvest Farmers – no mechanization Farmers – Cooperatives

Robusta: dry method Arabica: wet method (mechanization)

Market More than 90% of cocoa produced annually can be considered as bulk (or basic) cocoa. Fine and flavor cocoas represent only 5% of world cocoa production.

About 8 % of the production is “Premium Grade Coffee”. Increasing demand for the “specialty coffee market”.

Consumption Chocolate (cocoa is 50 to 70 % of the final product) – People don’t know the origin of the cocoa beans used to prepare chocolate (Now some consumer know the % of cocoa in the chocolate)

Coffee is 100 % of the final product (coffee drink). Consumers know the origin of their coffee:

• blend of Robusta/Arabica, pure Arabica/Robusta coffee • Origin (Kenya, Costa Rica…)

Label Organic chocolate Fair trade chocolate GI : Cocoa Arriba (Venezuela) (in progress)

Organic coffee Fair trade Rainforest alliance Utz kapeh Bird friendly CCCC GI : Kenya Coffee – Blue Mountain – Bourbon pointu -

Quality Consumers are not aware of the relation between origin, variety, post-harvest conditions and chocolate quality (in fact it’s not easy because cocoa is 60 % of the chocolate and it’s a manufactured product). For a production area it’s not easy to control parameter for cocoa quality as the orchard contains a mix of different clones and post-harvest is done by farmers.

Generally for an area the production comes from a specific clone (Blue Mountain coffee orchard is planted with Typica Coffee (90 %) – “Bourbon pointu” obtained with Arabica Laurina). For both origin farmers harvest red cherries and deliver coffee cherries to factories that process coffee by the wet method and after dry it. So it’s easier to describe “qualities characteristics” as there is a strong link between the product and the quality. The only transformation for coffee industry is roasting.

Quality control Visual aspect (cut-test) – Humidity - OTA Visual aspect (Green coffee bean analysis). – Humidity – OTA -

Cupping

Features of the Jamaican coffee industry applicable for cocoa

• Definition and organisation of the industryo Formal articles of association for applicantso Brand definitiono Suitable growing areas defined and linked to quality attributeso Classification of product quality

• Quality certification of producers and exporterso Standardised Training in production and processingo Extension and advisory teams for farmers, processors and dealerso Standardised assessment protocols and a defined typical qualityo Local and external certification

• Traceability o Defined growing areas with registered growers, processors and dealerso Approved listing of chemicals and other inputs

• Sensory testingo Tasting in approved facilities using standardised methods

Brand Definition depending on growing elevation

• Only coffee grown at elevations between 3,000 and 5,500 feet (1,700 m) could be called Jamaica Blue Mountain.

• Coffee grown at elevations between 1,500 and 3,000 feet (910 m) is called Jamaica High Mountain.

• Coffee grown below 1,500-foot (460 m) elevation is called Jamaica Supreme or Jamaica Low Mountain.

Jamaica Blue Mountain® Coffee – product defined and certified

• Jamaican Blue Mountain Coffee or Jamaica Blue Mountain Coffee is a classification of coffee grown in the Blue Mountains of Jamaica.

• Blue Mountain coffee are noted for and characterised by their “intense aroma, along with an intricate range of flavours with a subtle hint of herbs, spice and chocolate and lack of bitterness”.

• Jamaica Blue Mountain Coffee is a globally protected certification mark, meaning only coffee certified by the Coffee Industry Board of Jamaica can be labeled as such.

• The Coffee Industry Board of Jamaica must approve and issue licenses to the cultivators and exporters of Jamaica Blue Mountain Coffee.

• The climate of the region is cool and misty with high rainfall. The soil is rich, with excellent drainage. This combination of climate and soil is considered ideal for coffee.

Source: http://en.wikipedia.org/wiki/Jamaican_Blue_Mountain_Coffee

Where are the Blue Mountains?

Source: Loreen Walker, CTA ECDPM Workshop (2008)

©

The Coffee Industry Regulation Act• The Coffee Industry Regulation Act specifies what coffee may use the Blue

Mountain label. Additionally, it restricts the use of the Blue Mountain trademark to those authorized by the Coffee Industry Board. Broadly speaking, coffee harvested from the parishes of Saint Andrew, Saint Thomas, Portland and Saint Mary may be considered Blue Mountain coffee. The specific boundaries are defined as follows:[2]

– Starting at Skibo and proceeding in an east-south-easterly direction to Swift River; – thence east-south-easterly to Chelsea;– thence east-south-easterly to Durham (Samba Hill);– thence south-easterly to Belleview;– thence south-easterly along the western slope of the John Crow Mountain to Cedar Grove;– thence westerly to Font Hill;– thence north-westerly to Ramble;– thence westerly to Good Hope;– thence north-westerly to Dallas;– thence north-westerly to Industry Village;– thence north-westerly to Maryland;– thence north-westerly to Golden Spring;– thence northerly to Brandon Hill;– thence north-easterly to Tranquility;– thence east-north-easterly to Skibo.

Source: http://en.wikipedia.org/wiki/Jamaican_Blue_Mountain_Coffee

Quality Classifications of the Blue Mountain Label

• The Coffee Industry Regulations Act allows for five classifications:

• Blue Mountain No. 1 - 96% of beans must have a screen size of 17/20. No more than 2% of the beans may have significant defects.

• Blue Mountain No. 2 - 96% of beans must have a screen size of 16/17. No more than 2% of the beans may have significant defects.

• Blue Mountain No. 3 - 96% of beans must have a screen size of 15/16. No more than 2% of the beans may have significant defects.

• Blue Mountain Peaberry - 96% of beans must be peaberry . No more than 2% of the beans may have significant defects.

• Blue Mountain Triage - Contains bean sizes from all previous classifications. No more than 4% of the beans may have significant defects.

Source: http://en.wikipedia.org/wiki/Jamaican_Blue_Mountain_Coffee

What is the situation for cocoa regionally?

Extremes exist!

What do we have in place already in Trinidad and Tobago already?

Support systems in place

• Administrative supportiveo Intellectual Property Officeo Trade Implementation Unit of

Min of Trade, Industry and Investment

o Cocoa Development Company of T&T established

o Government appointed committee to oversee and explore GI initiatives

• Listing of potential GI for T&T

• Farmer Clusters identified and Co-operatives registered where possible

• Ongoing research/activities generating information in support of GIo GIS mappingo Flavour profiling of clusters

for brand buildingo Quality certification

Local Regional

o Traceability systems

GIS modelling for cocoa suitability

Grading and Quality

• National cocoa grades defined

• Regional grades inline with international certification bodies under review

• Quality certification becoming mainstream

Flavour profiling at CRC/UWI

Research linking flavour to “Terroir”

0

1

2

3

4

5

6

Cocoa Acid

Astring

ent

Bitter

Fruity

Floral

Nutty

Raw/be

any/g

reen

Other

Att

ribu

te I

nten

sity

LREMESJE

***

*** ***

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*

Studies into Processing Location effects on cocoa flavour

• General flavour trends for the processing locations from average scores for individual clones

– Manickchand Estate• higher acid and fruity scores

– San Juan Estate• lowest acid and fruity scores• highest floral scores

– San Juan Estate• highest cocoa flavour scores

– La Reunion Estate• generally between scores for ME

and SJE

* P≤0.05 ** P≤0.01 *** P≤0.001 Not Significant (NS) P>0.05

Studies into Growing Location effects on cocoa flavour

0

1

2

3

4

5

6

Cocoa Acid

Astring

ent

Bitter

Fruity

Floral

Nutty

Raw/be

any/g

reen

Other

Att

ribu

te I

nten

sity

ICG,TLREMarperUWI

*** **

*

*

* P≤0.05 ** P≤0.01 *** P≤0.001Not Significant (NS) P>0.05

Independent NIR profiling to support flavour effects

-6

-4

-2

0

2

4

6

-6 -4 -2 0 2 4 6LDA Factor 1 (91.7 %)

LD

A F

acto

r 2

(8.3

%)

La Reunion EstateManickchand EstateSan Juan Estate

‡ ‡ ‡

‡

1

2

4

-4

-3

-2

-1

0

1

2

3

4

-4 -3 -2 -1 0 1 2 3 4

LDA Factor 1 (62.2 %)

LD

A F

acto

r 2

(37.

8 %

)

124

ICG,T

LRE

UWI

Limitations

Challenges in creating and maintaining a GI

• Avoid poor design or inadequate governance structureo Avoid dominance by narrow interests or a single enterprise

• Discourage GI if the products lacks sufficient distinguishing characteristics or reputation for its origino Explore other origin marketing protection options like Trade marks and

Indications of source

• Keep costs downo Organisational, Institutional, Product spec. definition and ongoing operational

costs

• Controls must be appropriate to the product and market

• Ensure that there is a simple, clear and functional GI registration system locally

What else do we need to get our act together?!

• Systematically define and monitor our cocoa production and processing along the lines of GAP, HACCP based systems and SPS

• Develop local certification marks and traceability systems

• Aim for external certification (if cost is feasible)

• Build awareness and education of all stakeholders about the options, process, implications, monitoring and costs of seeking GI’s

Only then can we sensibly explore niche marketing based on flavor, other attributes and terroir (GI)

Our needs for a successful GI…

• Strong organisational and institutional structures to maintain, market and monitor the GI.o Long term commitment to the core processes of

Identifying and demarcating the GI Organising existing practices and standards Establishing a plan to protect and market the GI

• Equitable participation among the producers and enterprises in the GI region.

• Strong market partners committed to promote and commercialise the GI

• Effective legal protectiono Monitoring and enforcement to reduce fraud

Conclusions

• GI contributes to the social and sustainable development of the rural area concerned via:o Avoiding rural migrationo Maintaining biological diversityo Maintaining small scale producerso Preserving traditional knowledgeo Improving market access – global access linked

to local traditions

What we want to have at the end of it all…