The Effect of Geographical Indications (GIs) on the Koerintji Cinnamon Sales Price and Information of Origin

Abstract

This paper focuses on the impact of the geographical indications (GIs) of Koerintji cinnamon on its value chain. The study was performed from September 2017 to November 2017 in Talang Kemuning, Kerinci regency, Indonesia. A village farmers’ group was surveyed using a semi-structured questionnaire, roundtable discussions, interviews, and direct observations to understand whether the GIs improve income, source of production, and promote product quality. Using a descriptive method, the literature on the topic was analyzed, and a value chain study was structured from the review’s findings. This helped us to better understand how GIs’ effects are dispersed among the chain actors and eventually enter the areas from which GI commodities originate. GIs generate added value, especially for farmers and buyers. Specifically, by using the GI Koerintji cinnamon’s handbook of requirements, the efficiency of farmers and buyers has improved. The studied population included farmers from Koerintji Cinnamon Jambi Geographical Indication Protection Society (MPIG-K2J) and Tani Saktik Alam Kerinci (TAKTIK), a farmer group. To obtain a GI, TAKTIK had to implement good agriculture practices and good manufacturing practices based on the handbook. Results show that farmers developed a system to monitor post-harvest handling in assuring a safe and high-quality supply to the global spices market. Following the book requirements, TAKTIK members follow specific procedures, including selecting raw materials, grading, origin verification, and quality control. Furthermore, GIs enable farmers to claim a price premium. As a result, GI Koerintji cinnamon’s presence has added value and credibility to TAKTIK farmers, leading to price improvement.