The benefits and barriers of geographical indications to producers: A review

Abstract

AbstractConsumers are increasingly demanding information regarding the characteristics of products, their place of origin and methods of production. A Geographical Indication (GI) can be understood as a way to meet these demands, as it protects the origin of the product, as well as its characteristics. In addition to contributing to territorial development, GI signs have the potential to add value to products and help producers to become more competitive. However, some authors argue that there are barriers that can prevent the benefits of GI from reaching producers. Therefore, this article aims to identify the barriers and benefits of GI for producers. To reach this end, a Systematic Literature Review was carried out. As a result, it was observed that among the main benefits offered by the GI are higher prices, access to markets and preservation of cultural identity. Regarding the challenges, it was highlighted the existence of inefficient institutions, organizational problems, power asymmetry and appropriation of value by the most powerful agents of the supply chain. To conclude, this paper shows that the difficulties and benefits of GI to producers are not absolute and vary from region to region. In this sense, further research on the impact of GI, especially in developing countries, is necessary. The results here presented may be used as a base for future research that search to identify the importance of GI for producers and may also contribute to the development of actions or public policies related to GI.