Local products and regional marketing

Experiences from the Netherlands René de Bruin Dutch foundation for local products (SPN)

Background

• General developments in the Netherlands – Emphasis on agricultural modernisation – Orientation on export of agrarian products – Concentration of food production – A lack of ´eating culture´ • Only 7 products with a European Quality label (PDO/PDI/TSG)

Recent developments

• Local initiatives aiming at sustainble regional development • Bottom up, driven by farmer groups and small scale industry • Alternative development patterns in agriculture and food • Need for new skills, professionalisation of businesses and institutional arrangements • Need for a new policy on agriculture and rural development

Market opportunities

• Growing awareness amongst consumers, restaurant, catering companies etc about quality products • Slow food movement • Growing interest in the ‘rural’, appreciation of nature and landscape • Demografic changes, ageing population

A healthy future?

• Research initiated by Leader+ Network • SPN was partner in the research • Looking at strengths and weaknesses of local initiatives • Goal: tips for local initiatives and tips for policy makers

Local products and regional marketing

• Two different development patterns – 1. chain development around local products and product ranges – 2. regional marketing, promotion of typical regional characteristics (products, landscape, tourism, art, culture etc)

Local products

With national and international fame (PDO / PDI / TSG) Local products and specialities of regional importance Artisan products, local organic produce, fresh produce, direct marketing channels.

Chain concepts

• Present organization of food production and retail hinders the development of local products • Need for typical products with: – unique characteristics – high quality, differ in taste – ‘natural’ relation between product and region • Need for strong entrepreneurship, market concepts,

(re-) invention of tradion

• Need for operational quality schemes

Regional marketing

• Regional concepts based on regional identities • Integrated approach (local products, tourism, nature and landscape, art, culture local cuisine etc) • Looking for unique selling points of the region • Public-private coalitions

Approach of regional marketing

• Fase 1: internal branding – Defining shared values – Defining Unique selling proposition – Quality standards – Conditions for participation – Roles and responsabilities • Fase 2: external branding, consumer oriented – Promising brand or slogan, appealing to the consumer

(Possible) effects

• Social cohesion • Stimulates business development, not only in agriculture (SME’s) • Synergy between sectors (i.e. agriculture and tourism) • Facilitates rural-urban coalitions Justifies a joint effort of both regional authorities and business communities

Some conclusions

• Breeding ground for innovation and regional development • Local products and regional marketing have different u.s.p.

´s and need different frameworks for development • Synergy is possible • Regional marketing requires public-private coalitions; regional authorities can take a leading role • European quality labels have no added value for producers • Certification schemes are needed, but with low costs for small scale initiatives

Ambition of SPN

• Local: regional brands for food products and touristic services • National: quality scheme for local products (origin) • European: co-operation with fellow organisations and initiatives

Questions

• What is the added value of EU Quality labels on regional products?

• Is regionale marketing the most valuable strategy for regions without a strong tradition of quality products?

• Should regional labels or brands be authorized by the EU at the same level as Quality Labels?

• Does a regional label has to be also a quality label?