The Contribution of Geographical Certification Programs to Farm Income and Rural Economies: The Case of Pecorino Siciliano PDO

Abstract

This study attempts to measure the capacity of the EU geographical certification scheme to positively influence the price of certified products and the incomes of their producers. A comparison of the economic results of two cheese-producing dairy farm enterprises with different business strategies and locations within the Sicilian hinterlands is performed in order to determine the transformation value of each dairy’s sheep milk into pecorino cheese (with and without the Protected Designation of Origin, or PDO, certification) and the related joint products (ricotta). The economic convenience of the total transformation of sheep milk into Pecorino Siciliano PDO and ricotta is also appraised. The results suggest that producing and commercializing Pecorino Siciliano PDO is a promising strategy for differentiating and promoting dairy farm products and improving the financial performance of producers, with foreseeable positive repercussions in the socioeconomically less favored rural areas where they are located.