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Regional agricultural producers are cognisant
that to achieve a global competitive advantage
for their products, theymust seek to create brands
which capitalise on the unique characteristics
of regional agricultural food products, which
have a compelling local story to tell, or which have
prestige, quality attributes, recognition and/or
reputation linked to a specific place of origin.
Such products, referred to as Origin-Linked
Products (OLPs), often command a premium
price that is attached to the attributes derived
not only from their place of origin, but also due
to local traditional know-how.
This approach signals a significant paradigm shift
in the business models implemented by the agri-
food sector in the past, and requires a strategy
that demands a new focus on using the tools of
IP to build product recognition, reputation and
enhanced consumer perception of the unique
quality of regional food products. As part of this
evolving business model, regional producers are
starting to integrate innovative strategies, which
give them a competitive advantage and provide a
mechanism to obtain a price premium for their
products.
The commodity approach
Within the regional context, the agri-food sector is
characterisedbytheproductionofcommoditiesthat
have a global reputation for high quality. Examples
include coffee from the Jamaica Blue Mountains
andfineorflavouredcocoaproducedfromcountries
such as Dominica, the Dominican Republic,
Grenada, Jamaica, Saint Lucia, and Trinidad and
Tobago – all of which have been classified by the
International CocoaAgreement, 2010 as countries
thatproducepartiallyorexclusivelyfineorflavoured
cocoa. Further, other agricultural products have
gainedaninternationalreputationbecauseofsome
unique flavour or reputation for production, based
ontraditionalpractices.Anexcellentexamplewould
beregionalrumswhichhavebeenproducedforover
300 years based on traditions, especially related to
processing and blending.
In order to reap greater economic gains within
the agricultural sector, regional value-chain
actors cannot continue with the “business as
usual” approach to production and marketing of
their products. Product differentiation, greater
involvement along the value-chain, as well as a
reasoned and effective approach to developing IP
and branding systems must become integral to
agricultural production system.
Using the IP system to effectively
market agricultural products
In broad terms, IP is the application of human
intellect to create something original. It can
exist in many forms; for example, a logo,
design, invention or literary or artistic works.
Regional agricultural actors have a suite of
IP tools through which they can market
and promote their products. These include
trademarks, which can be used by an enterprise
to distinguish its goods and services offered
from that of another competing business in
the same product category; service marks,
which are similar to a trademark but are used
in commerce to distinguish and differentiate
a business’ services from that of others in the
market; collective marks, which are owned by
a group such as a commodity association and
are used by members of the group; certification
marks, which are usually given for compliance
with defined standards, but are not confined to
any membership; and GIs, which are signs used
on goods, which link the unique characteristics
of the good to its geographical origin.
Protecting IP and managing intellectual property
rights (IPRs) is critical to branding and establishing
market presence and, if managed correctly, can be
usedbyregionalactorswithintheagriculturalsector
to create value and a global competitive advantage
for their products through its exploitation. IP
and branding should be viewed as fundamental
strategies, which canbe used to enhance the success
and competitiveness of OLPs in the market and
should be considered as essential tools to augment
the income of those involved in the production,
processing and marketing of such products. One
examplewhere this strategy of creating high-value
brands through the use of IP tools and product
differentiationhas been successfully implemented
in the region is with regard to marketing sugar
produced inBarbados. The strategymixes volume
retail, manufacturingwith food services and retail
through premium stores to build brand equity
and obtain higher than average market prices for
the brands
Plantation Reserve and Plantation
Traditional
. Each branded product is marketed
and promoted to a different market segment and
at a different price point.
Protecting IP and managing intellectual property rights (IPRs) is critical to
branding and establishing market presence and, if managed correctly, can be
used by regional actors within the agricultural sector to create value and a
global competitive advantage for their products through its exploitation.
Clearing the Hurdles
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