Social capital and promotion of local agri-food products

dr Anna Kłoczko-GajewskaWarsaw University of Life Sciences – SGGW

anna_kloczko_gajewska@sggw.pl

Products protected by EU law (1/3)• Geographical Indication:

– comes from certain area, place or country – the quality or characteristics are significantly or exclusively

due to a particular geographical environment – production, processing OR preparation takes place in the

region

• Designations of Origin– comes from certain area, place or country – specific quality, reputation or other characteristics

attributable to that geographical origin – production, processing AND preparation takes place in the

region

Products protected by EU law (2/3)

• Specifically Traditional Products Guaranteed – produced in a certain way for at least decades– based on the tradition and culture

All three protected from:– any direct and indirect commercial use of the name – any imitations : „method…”, „in the style of…”

– any other false or misleading indication

Products protected by EU law (3/3)http://ec.europa.eu/agriculture/quality/door/list.html;jsessionid=pL0hLqqLXhNmFQyFl1b24mY3t9dJQPflg3xbL2YphGT4k6zdWn34!-370879141?locale=en

• Czech Republic – 32 (4) (olomoucké tvarůžky )

• Poland – 36 (kabanosy)

• Slovakia – 14 (4) (oravský korbáčik)

• Hungary - 12   (budapesti téliszalámi)

What about other products?

• Coutry regulations, which cannot interfere with EU regulations

• Some specific branches (wines in France)

• Other lists (traditional products in Poland)as a „first step”

Definition of social capital

• “Intuitively, the basic idea of ’social capital’ is that one’s family, friends and associates constitute an important asset, one that can be called upon in a crisis, enjoyed for its own sake or leveraged for material gain“ (Woolcock)

• “the norms and social relations embedded in the social structures of society that enable people to coordinate action and to achieve desired goals” [Narayan;2002]

Multidimensionality of social capital

• Units of observation:– Macro (country level)– Mezzo (associations)– Micro (individuals)

• Concepts of social capital– Structural vs cognitive– Bonding vs bridging

Types of social capital: structural vs cognitive

• Structural– information sharing– collective action (e.g. producer groups or informal help)– collective decision making– …

…through established roles and social networks, rules, and

precedents

• Cognitive:– norms and values – trust – attitudes and beliefs – …

Types of social capital: bonding vs bridging

• Bonding:– groups of people relatively more alike– help to „get by“

• Bridging:– groups of people of different kind – help to „get ahead“

many groups simultaneously bond along some social dimensions and bridge across others

Bonding social capital

Positive outcomes:

• Strengthening links within a group• Higher solidarity and mutual trust• Predictability of actors’ behaviour• Possibility of getting help in need• Willingness to act together• Securing following rules and norms

Bonding social capitalNegative outcomes

For non-members

• (Unintentional) excluding non-members from possibilities

• Hostility towards non-members

• Using ties against other groups (mafia)

For members

• Reinforcing inertia

• Lack of privacy

• Demanding conformism from members

• Strong norms and sanctions impeding development

Bridging social capital

• Positive outcomes– Creating inter-group networks– Better exchange of information– Building social inclusion

BUT there is no evidence of influence on – creating solidarity – making people cooperate

Influence of of bonding and bridging social capital on development

Source:based on [Woolcock, Narayan; 2000]

Diversity of social networks

Welfare

Bonding

Bridging

Results of the operating of social capital

• In human capital (spread of knowledge)

• In physical capital (jointly built objects)

• Reducing transaction costs

• Reducing collective actions dilemmas

• Social sphere (trust)

• Some negative outcomes, as well

Examples of social capital initiatives (1/2)

• Partnerships between authorities – Joint policy development

• Public-private partnerships– Joint policy development– Empowering rural enterprises

• Traditional business clusters and networks

Examples of social capital initiatives (2/2)

• Business networks for the joint distribution of rural products *

• Business networks focusing on unique selling propositions *

• Business networks strenghthening local tourism sector *

Source: http://www.pkky.fi/Resource.phx/pkky/hallinto/english.htx

Business network for the joint distribution of rural products: Finland, North Karelia

• Local food manufacturers jointly selling their products to institutional kitchens and restaurants

• Initiated by a public institute for adults’ education

• Courses, seminars, study trips, consultancy, project manager

• After 3 years „own shop” was established (wholesale and retail)

• Products joinlty promoted in supermarkets

Joint distribution of rural products in North Karelia - impact

• Creation of 10,5 full-time jobs

• Increase of the products’ value

• Creation of several new products

• Using new marketing materials and channels

Sources: http://pl.wikipedia.org/wiki/Nawarra_(prowincja), http://www.navarra.es/home_es/Gobierno+de+Navarra/Organigrama/Los+departamentos/

Desarrollo+Rural+Industria+Empleo+y+Medio+Ambiente/Acciones/Planes+especificos/Acciones+medio+ambiente/Conservacion+de+la+biodiversidad/

Montes+de+la+Valdorba.htm

Business networks focusing on unique selling propositions: Spain, Valdorba

• Strucured and holistic concept of sustainable management of wild mushroom production

• Partnership of local authorities, educational institutes, public and private enterprises

• Basing on well-defined and set structure for social and economic development

• Beginning with multidisciplinary study of the characteristics of the region

• Regular meetings for agreement on actions, speeches, conferences

Unique selling propositions in Valdorba - impact

• Development of rural eco-tourism sector linked to mushroom activity (30% increase in rural hotel occupation)

• Selling truffles jointly with other local products = 30% incerase in price for truffles

• Great progress in providing basic services, eg. water supply, rubbish colection, Internet, social events

• Development of local rural leaders

Source: http://fringewine.blogspot.com/2013/05/welschrieslingolaszrizlinggrasevina.html

Business networks focusing on unique selling propositions: Hungary, Villany

• Vine tour: partnership of local authirities and small private enterprises

• Initiated by local authorities, in order to fight with recession and depopulation

• Study trip abroad, cheap loans, trainings, mutual information sharing, half-formal meetings

• Certificates, road signs with pictograms, internet sites, brochures, study-tours, events

Unique selling propositions in Villany - impact

• 3500 points of wine drinking

• 70 certified services (shops, restaurants, craft, museums, etc.)

• 900 beds for tourists

• Tourists stay for longer and use more services

• Since 1994 number of toursts have risen significantly

Thematic villages

• Make the village recognisable

• A unique topic to attract tourists (mostly services and impressions, but also particular products)

• Needs a plan accepted by the villagers

• Not a main source of income, sometimes just making the village a better place to live

Key success factors

• Strong leader

• Elites engaged in the process

• Norms of cooperation

• Existing institutions

• Success of the first action

• Flow of information

How easy is it to create and to destroy social capital?

Thank you for your attention

Any questions are welcome

anna_kloczko_gajewska@sggw.pl