An impact assessment of origin labeling on table olive and olive oil demand

Abstract

In recent years, regional products and Geographical Indications (GIs) have become popular. When consumer's interest towards regional products was discovered, producers and companies tried to capitalize this interest. Origin labeled products begun to be used as a marketing strategy in food and agricultural sector. Alcoholic beverages, cheeses, meats and olive products are most popular products for origin labeling. In olive sector, Greece and Italy are dominating and they got 75% of GIs in EU. Most studies show that origin labeling affect consumer attitudes and registered products can be sold in the market with premium price. However, origin-labeling effect has been varying according to countries. Our household survey showed that consumers in Bursa are willing to buy specific regions olive oils and they prefer to buy olive cv. Gemlik that is a famous table olive of Bursa province. However, consumer awareness about origin is weak in research area and only 11% of consumers know what GIs is. According to research results, consumer awareness is a critical factor in order to make origin labeling as a viable marketing tool. However, in case consumer awareness is weak in a country, GI may serve to producers of regional products to protect their product reputation from deception. When the aim is also to effect consumer demand of a specific regional product and gain premium price via origin labeling, then consumers should be informed the first.