TY - JOUR
T1 - Do Food Quality Schemes and Net Price Premiums Go Together?
AU - Monier-Dilhan, Sylvette
AU - Poméon, Thomas
AU - Böhm, Michael
AU - Brečić, Ruzica
AU - Csillag, Peter
AU - Donati, Michele
AU - Ferrer-Pérez, Hugo
AU - Gauvrit, Lisa
AU - Gil, José M.
AU - Hoàng, Vi T.
AU - Lilavanichakul, Apichaya
AU - Majewski, Edward
AU - Malak-Rawlikowska, Agata
AU - Mattas, Konstadinos
AU - Napasintuwong, Orachos
AU - Nguy N, An Qu Nh
AU - Nikolaou, Kallirroi
AU - Papadopoulos, Ioannis
AU - Pascucci, Stefano
AU - Peerlings, Jack
AU - Ristic, Bojan
AU - Steinnes, Kamilla
AU - Stojanovic, Zaklina
AU - Tomić Maksan, Marina
AU - Török, Áron
AU - Veneziani, Mario
AU - Vittersø, Gunnar
AU - Bellassen, Valentin
PY - 2020/12/3
Y1 - 2020/12/3
N2 - This article addresses the issue of the profitability of Food Quality Scheme (FQS) products as compared to reference products, which are defined as analogous products without quality label. We approach this question by taking into account the level of the value chain (upstream, processing, and downstream), the sector (vegetal, animal, seafood) and the type of FQS (PGI, PDO, Organic). We collected original data for several products produced in selected European countries, as well as in Thailand and Vietnam. Comparisons depending on value chain level, sector and FQS are possible by using two comparable indicators: price premium and net price premium (including cost differential). The following principal conclusions were reached: 1) Price is higher for FQS products than for the reference products, regardless of the production level, the type of FQS or the sector; 2) Price premiums generated by FQS do not differ along the value chain, nor between sectors (vegetal, animal or seafood/fish); 3) Price premium for organic products is significantly higher than for PGI products, and this conclusion holds at upstream and processing levels, taking into account the costs directly related to production; 4) All organic products and almost all PDO and PGI products analysed benefit from a positive quality rent; 5) At upstream level and processing level, the relative weight of intermediate consumption in the cost structure is lower for organic products than for reference products.
AB - This article addresses the issue of the profitability of Food Quality Scheme (FQS) products as compared to reference products, which are defined as analogous products without quality label. We approach this question by taking into account the level of the value chain (upstream, processing, and downstream), the sector (vegetal, animal, seafood) and the type of FQS (PGI, PDO, Organic). We collected original data for several products produced in selected European countries, as well as in Thailand and Vietnam. Comparisons depending on value chain level, sector and FQS are possible by using two comparable indicators: price premium and net price premium (including cost differential). The following principal conclusions were reached: 1) Price is higher for FQS products than for the reference products, regardless of the production level, the type of FQS or the sector; 2) Price premiums generated by FQS do not differ along the value chain, nor between sectors (vegetal, animal or seafood/fish); 3) Price premium for organic products is significantly higher than for PGI products, and this conclusion holds at upstream and processing levels, taking into account the costs directly related to production; 4) All organic products and almost all PDO and PGI products analysed benefit from a positive quality rent; 5) At upstream level and processing level, the relative weight of intermediate consumption in the cost structure is lower for organic products than for reference products.
KW - food quality scheme
KW - geographical indication
KW - organic
KW - price premium
KW - profitability
U2 - 10.1515/jafio-2019-0044
DO - 10.1515/jafio-2019-0044
M3 - Article
AN - SCOPUS:85097487748
JO - Journal of Agricultural and Food Industrial Organization
JF - Journal of Agricultural and Food Industrial Organization
SN - 2194-5896
ER -