Traditions-Tastes-Regions Program in

Hungary and its Green Paper

aspectsImola KISÉRDI-PALLÓ Ph.D.

Ministry of Agriculture and Rural Development HU

EU High Level Conference on the Future of Quality Policy

of Agricultural Products and Foodstuffs12-13 March 2009 Prague CZ

STARTINGMOTTO

„Dis-moi ce que tu manges, je te dirai ce que tu es”

(Tell me what you eat and I tell you what you are)Le Physiologie du GoutBrillant Savarin, 1825

 

ChaptersI. European Quality Concept to ensure the

Competitiveness of Traditional Foods (1992-1997)

II. Traditions-Tastes-Regions (TTR) Program in HU(1998-2002)

III. The Complex Utilisation Strategy of the TTR (2003- )

IV. Consumer preferences to the Traditional Products (2004-2008)

V. Hungarian suggestions concerning Green Paper (2009)

European Quality Concept – Quality Labelling since 1992

• Quality Guarantee for Consumers • Legal Protection for Producers

against unfair market competition• Added Marketing Value

grows competitiveness• Sustainable Rural Development

efficient tool

EUROTERROIRS Program Conception (1993-1997)

Traditions, region and culture linked to the products as important quality features

Traditional and regional products are part of the national cultural heritage

Competitiveness of these products with high added value can be increased in the overstocked European and global market

Inventaire des Produits Alimentaires des Regions de l’Union Européenne (4000)

L’Inventaire du Patrimoine Culinaire de la France (890)

Traditional Foods from Britain (395) Deutschlands kulinarisches Erbe (300) Inventário espanol de productos traditionales

(532) Inventário de los productos traditionais

portugueses (351)(number of products

in 1997)

TRADITIONS-TASTES-REGIONS Program in Hungary 1998-2002

Background: Euroterroirs Program in the EU (1993-1997)

Aim:To create a Collection of Traditional and Regional Products in Hungary - thus improving their competitiveness

Financing:PHARE (French experts)French Government (French-Hungarian Initiative, INFH)Hungarian Government (Ministry of Agriculture and Agricultural Marketing Centre)

Traditional and Regional Product Concept

Concept„Traditional and Regional Product”

refers to the knowledge (local know-how, culture)

available in local communities (place)and knowledge transfer over generations (time).

Reference: SINI(2000):Typical Local Products, DOLPHINS Studies, EU 5th Research Framework Program

3 dimensions of Traditional and Regional Products

History(Time)

Culture(Tradition)

Geography (Place)

The Specific Quality of a Traditional and Regional Product is determined by Geography, History and Culture relating to the manufacture of the product. Source: KISÉRDI-PALLÓ, I.(2003):PhD Thesis, Corvinus University, Budapest

Criteria of TTR Collection Production by traditional method Linked to a specific geographical region Historical dimension (min. 2 generations = 50ys) Good reputation Existance of production and distribution

Results of the TTR program

1998: Elaboration of the criteria by the Scientific Panel

1999: Collected 1148 product proposals by experts and examined by the Scientific Panel

2000: 300 product descriptions accepted by the National Council

2001: 1st edition of the Book in two volumes 2002: Trademark of „HÍR” TTR registered by

the Hungarian Patent Office, owned by the Ministry of Agriculture and Rural Development

2003: CD version in HU and Book 2nd edition 2004: CD version in EN, D and HU 2005: 3rd edition of book

TTR - Regions

Southern Great Plain

Northern Great Plain

Northern Hungary

Western Transdanubia

Southern Transdanubia

Central HungaryCentral

Transdanubia

TTR-logo

The Regional Division of Products listed in the TTR Collection

86

5846

43

30 28

9

0102030405060708090

SouthPlain

NorthPlain

CentralHu

West.Danub.

SouthDanub.

NorthHu

Central Danub.

The Sectorial Division of Products listed in the TTR Collection

110

55

3122 22

13 13 10

0

20

40

60

80

100

120

Fruit-veget. meat bakery drinks dairy spice sweets Confectionary

Complex utilisation strategy of TTR

Utilisation by instruments of collective marketing

AMC

Utilisation by instruments of industrial property rights

TMs & GIs

Utilisation in rural development programs RDP

Approved by the Ministerial Board in 2003.

Results of collective marketing

(Agricultural Marketing Centre)

Publication of the Collection (book, CD, homepage, films)

Enlargement of the Collection (Transylvania) Presentation of the Collection on international

exhibitions (e.g. FOODAPEST, IFE Hungary, OMÉK, SIA, Royal Show, Grüne Woche)

Supported utilisation of the Collection in the education & research (competition for bakery & confectionery candidates)

Promoting the distribution of TTR products (e.g. CORA supermarkets)

Utilisation by instruments of industrial property rights

PDO/PGISubmitted 11 national protected products to the COM until nowSzegedi téliszalámi (Winter salami of Szeged) registered in 2007

TSG Traditional soda water under national protection

Trademark TTR trademark system for products in the preparation phase

Utilisation in the rural development programs

2000-2002: Rural Development Support System in Hungary 2003-2004:SAPARD in HU2004-2006: Agricultural and Rural Development Operational Program2007-2013: New Hungary Rural Development Program

Criteria: Producer organisations/groups Conformity with quality, hygiene and animal welfare requirements (cross compliance)

„Traditional Food” Working Group

in Hungary Established in the framework of the European

Organization for Quality HNC in 2004 Objective: to improve the utilization strategy of

the TTR collection at European level Members: 124 experts Activities:

Conferences (EU Community Conference, 2006) Seminars e.g. TAIEX seminar, 2005 Expert Meetings Proceedings and Publications Collaboration with other professional partners

Consumer Expectations to Traditional Products with factor analyses

QUALITY factor High quality Safety Healthy

ECONOMIC factorExport orientation Competitiveness

TRUST factor Origin (Place dimension)History (Time dimension) Tradition (Culture dimension )

Conclusions: Three independent factors can be distinguished: quality, economic and trust factors. Within these factors can be seen the elements with high weighting as well. Within the trust factor, consumers contribute to determining role of geographical, historical and cultural aspects of the traditional products.

Source: NÓTÁRI, M (2008) and POPOVICS, A (2008)

Conclusions and Suggestions

based on Marketing-Mix (4P)

Product: Trust to products – Consumers in favour of Hungarian foods with trade mark

Price: Moderate willingness to pay extra price for traditional products - suitable price level

Place: Direct sales - Hungarian corners in the supermarkets

Promotion:Effective marketing-communication strategy

Source: SZAKÁLY, Z.- SZILÁGYI, O (2008) University of Kaposvár

Determination of Conclusions and

Determination of breaking points

based on SWOT analyses

The TTR products are suitable for the EU registration BUT

The cooperation of the producers is not perfect – To encourage the formation of producer groups

Modest reputation of the products - To enhance the reputation by collective marketing instruments

To promote their market accession – To create local or regional organizations (e.g.cluster, SF convivium)

KISÉRDI-PALLÓ, I.(2006): EU Community Conference, Debrecen, Proceedings

Example for creation of cluster

Creation of cluster (e.g. Slow Food „convivium”)

www.slow-food.hu

Objective: To protect the local products and cultureCentre: BRA (ITALY)In the world: 1000 conviviums/80 000 members

Hungarian conviviums: SF Budapest (2003) for confectionarySF Debrecen (2004) for honey cakeSF Szatmár County (2005) for plum jam SF Kiskunság (2006) for mangalitza and bioproducts

Green Paper aspects – Hungarian comments

Winning Together

Building on Success

Harnessing Diversity

Key Elements of the Competitiveness

Towards a European Vision of Quality /Study of European Organization for Quality, supported by the European Commission, 2000/

Green Paper on Quality Policy fits very well to these principles.

Hungarian suggestions I.To extend the scope of the traditional product with soda water category Our reasons based on the case study revised by HBS:

Long traditional know-how (180 ys) Well-organised producer group since 100 ys

(nowadays 500 members, 10 000 employees in 1500 manufactures)

High quality, safety and healthy product Innovative approach Environmental approach (refilling) Variable sales channels (B2B, B2C,

locavore) Strong cultural dimension (historical

museum and book, link to literature and painting)

HU inventory which spread in Europe (AT,DE, PL, SL, UK, PT, ES, IT, RO, LV,LT, EE)

„The experience of generations and centuries was needed before the Hungarian invented spritzer, the secret of long life.” (Sándor Márai)

Pablo Picasso

Hungarian suggestions II.To enhance the reputation of traditional products by national or regional trademarks e.g. TTR

Our objective:to introduce TTR asnational quality schemein the near future.

Hungarian suggestions III.Common initiative of producer groups to apply for TSG registration (e.g. „kürtős kalács” i.e. chimney cake/ pastry horn in the CEECs)

Traditional Chimney Cake originated from Transylvania (RO), and spread in Hungary and Slovakia and Czech Republic as well.

Hungarian suggestions : Plus OnePromoting innovation of traditional products related

to their competitiveness:„New Regional Product” category (Ittersum, 2000):

Products developed relying upon local specialities and experiences

EU TRUEFOOD project - EU 6th Research Framework Prog.Intradfood 2005 – Innovation in Traditional Foods EFFOST Conference, Valence, October, 2005Innovation is the new dimension of the quality according to

the Futures Study, 2008, American Society for QualityFood Culture: Tradition, Innovation and Trust

17th IAMA Agribusiness World Forum Parma, June, 2007

Global Challenges - Local Solutions 19th IAMA Agribusiness World Forum Budapest, June 20-23, 2009

CLOSINGMOTTO

„Le fait des nations dependent de ce que ils mangent”

The fate of the nations depends onwhat they eat.

Le Physiologie du GoutBrillant Savarin, 1825

THANK YOU FOR YOUR ATTENTION!

E-mail: Kiserdii@fvm.hu