Geographical Indications (GIs) have become a trusted tool for producers to signal quality and establish credibility regarding the origin of their products. When agricultural and food products are strongly linked to local agronomic conditions and produced using traditional methods and recipes, producers can acquire this certification, typically through producer organizations. GI certification protects the authenticity of these products and enables international recognition for their quality. 

In their recent publication Rackl et Menapace explored the role of GI certification in coordinating small- and medium-sized food suppliers with large-scale retailers in agri-food supply chains, where retailers seek to procure high-quality goods. Within a framework of asymmetric information about supplier efficiency in quality production, the authors illustrate how GI certification enhances the coordination effect of procurement contracts. It does so by improving retailers' ability to identify efficient suppliers and increasing the provision of high-quality goods. Using a novel dataset from a survey of 476 small- and medium-sized food craft suppliers in Germany, their findings—based on instrumental variable approaches and propensity score matching—indicate that GI-certified suppliers are 19.9% to 42% more likely to transact with a retailer than non-certified suppliers. These results suggest that GI certification may play a crucial role in facilitating supplier-retailer coordination.

The insights were shared with the attendees of the International Conference on Worldwide Perspectives on GIs, which was held from February 19th to 21st in Rome, Italy. The conference brought together representatives from academia, practice and policy to discuss developments and the state of the art on GIs. The organisers were the FAO and the Italian Ministry of Agriculture, Food Sovereignty and Forestry (MASAF), alongside the CIRAD (Centre for International Cooperation in Agricultural Research for Development, Montpellier, France), IPI (Swiss Federal Institute of Intellectual Property, Switzerland), oriGIn (Organization for an international network of geographical indications), oriGIn Italia and the Qualivita Foundation.

Presentations and panel discussions covered the accessibility of GIs for producers in the Global South and their potential to support more sustainable production practices in line with the Sustainable Development Goals (SDGs). Additionally, speakers and panelists examined the legislative characteristics of GIs and their role in governing agricultural value chains.