Traditions-Tastes-Regions Program in Hungary and its Green Paper aspects Imola 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 Foodstuffs 12-13 March 2009 Prague CZ STARTING MOTTO „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 Gout Brillant Savarin, 1825 Chapters I. 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 Northern Hungary Western Central Transdanubia Central Hungary Transdanubia Southern Great Plain Southern Transdanubia Northern Great Plain TTR-logo The Regional Division of Products listed in the TTR Collection 90 80 70 60 50 40 30 20 10 0 86 58 46 43 30 28 9 South Plain North Plain Central West. South North Central Hu Danub Danub. Danub. Hu The Sectorial Division of Products listed in the TTR Collection 120 110 100 80 55 60 40 31 22 22 20 0 Fruit-veget. 13 meat bakery drinks dairy spice 13 sweets 10 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 Approved by the Ministerial Board in 2003. RDP 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/PGI Submitted 11 national protected products to the COM until now Szegedi 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 HU 2004-2006: Agricultural and Rural Development Operational Program 2007-2013: 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 factor Export 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 marketingcommunication strategy Source: SZAKÁLY, Z.- SZILÁGYI, O (2008) University of Kaposvár 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”) Objective: To protect the local products and culture Centre: BRA (ITALY) In the world: 1000 conviviums/80 000 members Hungarian conviviums: SF Budapest (2003) for confectionary SF Debrecen (2004) for honey cake SF Szatmár County (2005) for plum jam SF Kiskunság (2006) for mangalitza and bioproducts www.slow-food.hu Green Paper aspects – Hungarian comments Winning Together Building Harnessing on Diversity Success 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 as national quality scheme in 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 One Promoting 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, 2005 Innovation is the new dimension of the quality according to the Futures Study, 2008, American Society for Quality Food 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 CLOSING MOTTO „Le fait des nations dependent de ce que ils mangent” The fate of the nations depends on what they eat. Le Physiologie du Gout Brillant Savarin, 1825 THANK YOU FOR YOUR ATTENTION! E-mail: Kiserdii@fvm.hu