Rapport nr - SIFO

4 Management and Costs of Official Quality Signs4.1. Management of labels and appellationsAdministration boards for each appellation or label is composed of producers, transformers and distributors,but the presidency is made by the producers and transformers for CCP. This represents thetwo different philosophies of these two groups of quality signs. Finances also defer between labels/appellationsand CCP. Labels/appellations are principally financed by contributions from producerunion members (64%) as well as by national departments and regions. On the other hand, CCPis financed mainly by sales, other allowances and through European financing, and contributions byproducers only represent 7% of the budget.The exact goal of the PDO is very important to identify, and is often a subject to debate. For example,some members of a PDO envision a means to protect certain areas, old methods and tradition. Thesepersons are often producers who want to work in a traditional way, keeping an area like a sanctuary oftradition. On the other side, other members have a vision of a PDO as an economical means of development.In a same union there can be both of these visions: the first one supported by producers andthe last one supported by companies using raw materials from the producers. Sometimes the importanceof brand members of a PDO can be superior in term of notoriety. It is possible that a brandmember of a PDO is more well-known than the PDO, which was created before the brand. The area ofnotoriety of a PDO is often smaller than this one of a national brand when the owner of this one is alreadya national company or a well-know one.An example of PDO-Ossau Iraty (Cheese of South West) and the brand Etorky:This opposition appeared in the management of the PDO Ossau-Iraty between conservative producersand the big cheese group Bongrain, owner of the brand Etorky. This conflict on the use of new manufacturingtechnologies by Bongrain resulted in its departure of the PDO. Bongrain preferred to keep itstechnologies, allowing it to produce a cheese adapted to consumer desires. Bongrain preferred to alsocommunicate on its brand Etorky more than on the PDO 5 . This choice resulted in a considerable successof this brand, surpassing that of the PDO.4.2. Price policyIn most cases, price is parallel to both the reputation and prestige of a quality sign. The most famousbrand also has the most expensive PDO. Label Rouge is the second most expensive than PDO, whilethe last one is CCP( Agreste Primeur, N°128, May 2003). We should also remember that some brandsare more expensive than the “equivalent” labelled product. One example of this involves the Etorkybrand of Bongrain Group and the PDO Ossau-Iraty 4 . In general, the price of a PDO is approximately30% (INAO 2006, 23% concerning wine) more expensive than a Label product. The arrival of Ter-5 Extracted from Valor 2006, organised by Dr. Pascale Maizi, CNEARC.