EUROPEAN COMMISSION Brussels, 20.12.2021 SWD(2021) 427 final COMMISSION STAFF WORKING DOCUMENT



EVALUATION

OF GEOGRAPHICAL INDICATIONS AND TRADITIONAL SPECIALITIES GUARANTEED PROTECTED IN THE EU





















{SWD(2021) 428 final}



Contents 1.INTRODUCTION 2.BACKGROUND OF THE INTERVENTION 2.1.Definitions of GI and TSG 2.2.Legal framework for GIs and TSGs 2.3.Recent policy developments related to GIs/TSGs 2.4.Baseline and points of comparison 2.5.Description of intervention and its objectives 3.STATE OF PLAY 3.1.Description of the current situation 3.1.1.Data on GIs and TSGs 3.1.2.Importance of GIs/ TSGs: Economic overview 3.2.Implementation at national and EU level 3.2.1.Application procedure 3.2.2.Controls and enforcement 4.METHODOLOGY 4.1.Short description of the methodology

4.2.Data collection and the assessment 4.3.Limitation and robustness of findings 5.ANALYSIS AND ANSWERS TO THE EVALUATION QUESTIONS 5.1.Effectiveness 5.1.1.Integrity of the internal market 5.1.2.Fair competition for farmers and producers 5.1.3.Protection of intellectual property right 5.1.4.Fair return for farmers and producers 5.1.5.Contribution to rural economies 5.1.6.Clear and reliable information on the product to consumers 5.1.7.Safeguarding traditional methods of production and recipes 5.2.Efficiency 5.3.Relevance 5.3.1.Producer groups and national authorities 5.3.2.Consumers 5.3.3.Relevance regarding the needs of rural areas 5.3.4.Relevance regarding the environmental sustainability and animal welfare 5.4.Coherence 5.4.1.Coherence between GIs and TSGs 5.4.2.Coherence between GIs and EU trade marks

5.4.3.Coherence between GIs/TSGs and national/regional schemes 5.4.4.Coherence between GIs/TSGs and other CAP instruments and measures 5.4.5.Coherence between GIs/TSGs and wider EU policies 5.5.EU added value 6.CONCLUSIONS 6.1.Effectiveness 6.2.Efficiency 6.3.Relevance 6.4.Coherence 6.5.EU added value 6.6.Lessons learned 1.ANNEX 1: PROCEDURAL INFORMATION 2.ANNEX 2: STAKEHOLDER CONSULTATION 3.ANNEX 3: METHODS AND ANALYTICAL MODELS



Figures Figure 1. Intervention logic for GIs and TSGs for agricultural products and foodstuffs, wines, spirit drinks and aromatised wine products

Figure 2. Registered GIs & TSGs by EU Member State & non-EU countries – January 2021 Figure 3. Evolution of the number of GIs & TSGs (non-EU countries included) between 2010-2020 Figure 4 Breakdown of number and share of GIs & TSGs per sector - January 2021 Figure 5 Product categories of agri-food GIs and TSGs– January 2021 Figure 6 GIs sales value and number of registered names by scheme GIs and TSGs (2017) Figure 7 Evolution of the sales value of GIs and TSGs and the number of names registered (EU Member States only), in billion EUR Figure 8. Value premium rate (2017) Figure 9. Controls and enforcement of GIs Figure 10: Overview of effectiveness analysis Figure 11: Recognition of EU quality schemes' symbols: distinguishing between PDO and PGI/GI symbols / schemes by the respondents (in %) Figure 12: Recognition of EU schemes’ symbols compared to the national or regional schemes’ logos by the respondents (in %) Figure 13. Evolution of the average duration of the scrutiny and opposition procedures at EU level between 2008 and 2018 in months Figure 14. Relevance of the objectives of agri-food GIs and TSGs by national authorities (NA) and producer groups (PG). Figure 15. Selection of ideas mentioned by the OPC respondents Figure 16 Overview of the type of the respondents of the public consultation. Figure 17. Incentives to participate in the EU quality schemes (in %) Figure 18. Disincentives to participate in the EU quality schemes (in %) Figure 19. Consistency of EU quality schemes with consumer expectations (in %) Figure 20. Coherence of EU quality schemes with MS public quality schemes (in %) Figure 21. Coherence of EU quality schemes with private labels and certification schemes (in %)





Tables Table 1. Data gathering methods, scope and reach of the evaluation support study on GI/TSG Table 2. Opinion from national authorities on the effectiveness of controls on GIs/TSGs Table 3. Distribution of benefits according to the evaluation support study- case studies Table 4. List of selected national/regional schemes Table 5. List of incentives and disincentives Table 6 Most selected incentives to participate in the EU quality schemes per category of respondents Table 7. List of the 17 case studies conducted Table 8. Details on the electronic survey with producer groups



Acronyms and abbreviations CAP Common Agricultural Policy CDG Civil Dialogue Group CMO Common Market Organisation COVID-19 Disease caused by a new strain of coronavirus DG Directorate-General DG AGRI Directorate-General for Agriculture and Rural Development EU European Union FADN Farm accountancy data network GVA Gross Value Added IP Intellectual Property IPR Intellectual Property Right IPRED Intellectual Property Rights Enforcement Directive JRC Joint Research Centre NA National authorities OJ Official Journal OCR Official Control Regulation PDO Protected Designation of Origin PG Producer groups PGI Protected Geographical Indication PS Product Specification SWD Staff Working Document TSG Traditional Speciality Guaranteed UK United Kingdom



1.INTRODUCTION This document sets out the results of the Commission’s evaluation of the European Union (EU) quality policy on Geographical Indications (GI) and Traditional Specialities Guaranteed (TSG). This legislative framework (“framework”, “rules”) consists of: ·GIs and TSGs for agricultural products and foodstuffs: Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (OJ L 343, 14.12.2012, p. 1);

·GIs for wines: Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, p. 671); ·GIs for spirit drinks: Regulation (EU) 2019/787 of the European Parliament and of the Council of 17 April 2019 on the definition, description, presentation and labelling of spirit drinks, the use of the names of spirit drinks in the presentation and labelling of other foodstuffs, the protection of geographical indications for spirit drinks, the use of ethyl alcohol and distillates of agricultural origin in alcoholic beverages, and repealing Regulation (EC) No 110/2008 (OJ L 130, 17.5.2019, p. 1) and ·GIs for aromatised wine products: Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products, and repealing Council Regulation (EEC) No 1601/91 (OJ L 84, 20.3.2014, p. 14). This evaluation is a backward-looking exercise, it covers the period from 30 May 2008 (shortly after the entry into application of Regulation (EC) No 110/2008 for spirit drinks) to the end of 2020, based on available information and data. The evaluation assesses the extent to which the GI and TSG policy has achieved its objectives. It examines the effectiveness, efficiency, relevance, coherence and EU added value of the GI and TSG framework. In particular, the evaluation assesses whether the GI and TSG policy is still fit for purpose in the light of the current and (already known) future challenges. It takes account of the Commission’s new political objectives, in particular the Farm to Fork Strategy. The current COVID-19 crisis is also being assessed in limited extent. The evaluation covers all EU Member States (and the United Kingdom, which was still a Member State for most of the evaluation period). This evaluation feeds into an Impact Assessment report that will present and analyse the options for the upcoming revision of the GI/TSG policy. 2.BACKGROUND OF THE INTERVENTION This section firstly explains the terms “GI” and “TSG”, secondly describes the legal background and gives an overview of recent (political) developments. It also explains the baseline and points of comparison for the evaluation. Finally, it describes the intervention and its objectives, including the intervention logic. 2.1. Definitions of GI and TSG As of January 2021, the EU protects almost 3 400 names of specific products as Geographical Indications (GIs) or Traditional Specialities Guaranteed (TSGs). What are Geographical Indications? A Geographical Indication (GI) is an indication (name) used on products from a specific geographical origin that have a certain quality, reputation or other characteristic that is essentially attributable to that origin. The GI scheme confers intellectual property rights, granting producers in a defined geographical area the right to use the registered name if they comply with the product specification. Like other forms of Intellectual Property Rights, GIs promote fair competition by preventing “bad faith” uses, give consumers a guarantee of authenticity and distinguish products in the market. Their added value means that they secure higher-value sales and exports. Several GI schemes operate at EU level: Protected Designations of Origin (PDOs) and Protected Geographical Indications (PGIs) in the agri-food and wine sectors, and Geographical Indications (GIs) for the spirit drinks and aromatised wine products. The link with the territory is stronger for PDOs than for PGIs and GIs: ·for PDOs, the quality or characteristics of the product are essentially or exclusively linked to the particular geographical environment of the place of origin. This encompasses natural and human factors, such as climate, soil conditions, topography, local know-how, etc. (natural and human factors); all stages of the value chain must take place in the defined geographical area; ·for PGIs and GIs, the quality, reputation or other characteristic is essentially attributable to its geographical origin. For most products, at least one of the production steps takes place in the defined geographical area. Famous geographical indications include for example Bayerisches Bier, Champagne, Irish Whiskey, Kalamata olives, Parmigiano Reggiano, Polish Vodka, Queso Manchego and Roquefort.

What are Traditional Specialities Guaranteed? ·Traditional Speciality Guaranteed (TSG) highlights traditional aspects such as traditional production method or traditional composition, without being linked to a specific geographical area. The TSG scheme provides for labelling protection and is not an intellectual property instrument. Examples of famous TSGs are Bacalhau de Cura Tradicional Portuguesa, Amatriciana tradizionale, Hollandse maatjesharing and Kriek. 2.2.Legal framework for GIs and TSGs GIs are recognised as Intellectual Property Rights (IPR) under the World Trade Organization’s (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The EU has a particular responsibility to ensure the protection of Intellectual Property Rights as this is mandated under the Charter of Fundamental Rights of the European Union (Article 17) . The GI and TSG schemes are an integral part of the Common Agricultural Policy (CAP), which the EU has regulated in various steps as follows: –In 1970, Regulation (EEC) No 817/70 was the first legal instrument laying down special provisions relating to quality wines produced in specified regions. Today GI legislation for wine is embedded in the Common Market Organisation (CMO) Regulation (EU) No 1308/2013, covering a range of agricultural products including the wine sector. –In 1992, the EU extended the EU GI scheme to agricultural products and foodstuffs with a specific regulation. The current Regulation (EU) No 1151/2012 aims at ensuring protection of the GIs as an IPR and safeguarding traditional methods of production and recipes for TSGs. –The first rules on spirit drinks GIs were set in 1989 (Regulation (EEC) No 1576/89). Current rules on production and labelling are set out in Regulation (EU) 2019/787. –Rules for aromatised wine products GIs were first set in Regulation (EEC) No 1601/91. The current legislation in force is Regulation (EU) No 251/2014. Overall, the current four sets of rules are coherent when it comes to the scope of protection of the names. However, due to historical factors and product specificities, they contain some sector-specific rules, e.g. on the use of raw materials, or on product labelling. The legal framework would benefit from streamlining, which is to some extent already addressed in the current CAP reform process, such as alignment of agri-food procedures with the rules for the wines and spirits and the integration of aromatized wine products under the scope of the agri-food Regulation, thus repealing GI provisions from the Regulation on aromatised wine products. The current legal framework does not address requirements stemming from new political priorities and societal developments, such as sustainability or digitalisation. However, analysis of the GI and TSG schemes show that producers are already taking some of these on board. This is detailed under Section on 5.3.4. The current CAP reform addresses sustainability and digitalisation to a certain extent, but the impact assessment has confirmed the need to do more in these areas. In addition, the CAP-financed rural development framework contains a specific measure to support quality schemes . 16 Member States have included this measure in their Rural Development Programmes for the period 2104-2020, i.e. 56 out of 118 Rural Development Programmes provide for such a support. This support covers two types of operations: support for farmers and groups of farmers for joining quality schemes established at national/regional or EU level (including for GIs and TSGs), and support for information activities on quality products under such schemes. 2.3.Recent policy developments related to GIs/TSGs In its Political Guidelines for 2019-2024, the Commission focuses on six headline ambitions for Europe . Among the key priorities is the development and implementation of a European Green Deal. In her “mission letter” to Commissioner Wojciechowski , Commission President von der Leyen referred to the need ‘to strengthen the system of GIs. GIs are a key part of maintaining high food quality and standards and ensuring that our cultural, gastronomic and local heritage is preserved and certified as authentic across the world’. In the Farm to Fork Strategy , the Commission undertakes to strengthen the legislative framework of GI schemes, include specific sustainability criteria where appropriate, and strengthen the position of farmers and GI producer groups in the food supply chain. Council conclusions on the strategy welcomed a greater integration of sustainable development into EU quality policy, and asked the Commission to reaffirm the relevance and importance of EU quality schemes and to strengthen the legislative framework on GIs. The Farm to Fork Strategy also outlined that the Commission will propose a legislative framework for a sustainable food system before the end of 2023.

In addition, the Commission’s Intellectual Property Action Plan involves improving the GI protection system, so as to make it more effective and to combat counterfeiting. The Commission’s June 2018 legislative proposals on the Common Agricultural Policy (CAP) for 2021-2027 aim to make the EU's agricultural policy more responsive to current and future challenges, while continuing to support the active needs of EU farmers. An adjustment of the GI legal framework is ongoing in the framework of the CAP reform, in particular by amending Regulation (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products (CMO Regulation) . The proposed amendments, which are currently discussed by the legislators, are aimed at clarifying certain GI wine rules and increasing protection on on-line selling platforms and for products in transit. They are also intended to streamline the rules for GI agricultural products and foodstuffs, and extend their application to aromatised wine products. The COVID-19 pandemic brought a shock to agricultural markets. The farm sector, including GI/TSG producers, will have to adapt gradually e.g. to lower consumer demand, leading to a reduction in output. However, this evaluation does not assess the impacts of the pandemic on GI/TSG producers, as works had already started before the crisis took off and it is still ongoing, with its effects most likely to reverberate throughout the coming decade. 2.4.Baseline and points of comparison For the purposes of assessing policy, the points of comparison for this evaluation are rather limited. The previous evaluation cannot be used as a baseline, as the reference period (1992 to 2006) was some time ago and it was completed in 2008. Also, it had a narrower sectorial scope, focusing on agricultural products and foodstuffs only, while this evaluation covers four sectors (agricultural products and foodstuffs, wines, spirit drinks and aromatised wine products). Moreover, the 2008 evaluation had to rely on findings from a limited number of case studies rather than data covering all registered PDOs and PGIs. It led to following recommendations: ·increase the availability of administrative and statistical data on the PDO/PGI scheme at EU and Member States levels. ·actively promote the scheme and provide stronger support for applicants. ·carry out an active communication campaign to raise consumer knowledge of the PDO/PGI scheme and the PDO/PGI symbols; and ·consider ways of providing more information about raw material ingredients in PGIs, e.g. detailed origin information on at least the main ingredients on the package. The current four sets of rules for EU quality schemes are in force respectively for spirit drinks since 2019, for agricultural products and foodstuffs since 2012, for wines since 2013 and for aromatised wines since 2014. The Joint Research Centre (JRC) provided technical support in the form of a counterfactual analysis. This quantitative analysis provides an analysis of causal impacts on, for instance, employment and gross value added (GVA) in agriculture. 2.5.Description of intervention and its objectives The GI and TSG schemes are part of the Common Agricultural Policy (CAP). Their overall objective is to ensure the protection of the names of specific products. While they share a similar intervention logic and pursue common objectives, there are some differences. The general objectives of a GI is to provide an Intellectual Property Right protection for the name of a product of which the quality/characteristics or reputation are linked to its geographical origin. Specific objectives are to protect the legitimate interests of consumers and producers, to ensure market transparency and fair competition between producers, to provide clear product information for consumers, to safeguard the integrity of the internal market and create a competitive landscape with a level playing field for undertakings. The general objectives of a TSGs is to safeguard traditional methods of production and recipes, regardless of the link to a specific geographical place. TSG is a labelling scheme, not constituting Intellectual Property Right protection. Its specific objectives are to help producers of traditional products to communicate to consumers the value adding attributes of their products as well as safeguarding traditional methods of production and recipes. Based on the above, the key objectives of the GI/TSG framework are therefore to: 1.safeguard the integrity of the internal market, 2.establish fair competition for farmers and producers,

3.ensure uniform protection of the names, in particular GIs as an IPR, 4.provide fair return to farmers and producers, 5.contribute to the rural economy, 6.provide consumers with clear and reliable information on the product in question. Further, the four sets of EU rules for the EU quality schemes set the following specific objectives per sector: –Agricultural products and foodstuffs: the specific objectives of protecting designations of origin and geographical indications are securing a fair return for farmers and producers for the qualities and characteristics of a given product, or of its mode of production, and providing clear information on products with specific characteristics linked to geographical origin, thereby enabling consumers to make more informed purchasing choices. The specific objective of the self-standing scheme for traditional specialities guaranteed is to help the producers of traditional products to safeguard traditional methods of production and recipes and to communicate to consumers the value adding attributes of their product. –Wines: the current legislation aims at protecting the legitimate interests of consumers and producers, ensuring the smooth operation of the internal market, and providing information on the authenticity of quality products. –Spirit drinks: the specific objectives set out in the regulation are the preservation of traditional production methods, the prevention of deceptive practices, the attainment of market transparency and fair competition between producers, and the achievement of a high level of consumer protection. –Aromatised wine products: the specific objectives are the preservation of a certain quality standard, the prevention of deceptive practices, the attainment of market transparency and fair competition between producers, and the achievement of a high level of consumer protection. Based on these objectives, a general intervention logic is presented below, setting out needs, objectives, inputs, activities, outputs, results and impacts. The objective of “contributing to the rural economy” is covered under the other objectives, such as securing a fair return for farmers. Source: Evaluation support study on GI/TSG



3.STATE OF PLAY This section gives an overview of the number and economic importance of GIs and TSGs. It explains the application and registration procedure, and the enforcement and controls of GI and TSG schemes along the down- and upstream markets. The statistical data in this section on the number of registered names relates to the situation of 1 January 2021, whereas the evaluation support study on GI/TSG had a cut-off date of 1 January 2020. This allows to illustrate the dynamics of the GI/TSG sector with more up-to-date information. The economic data (retrieved from an external study on the added value of GIs) refers to year 2017.

3.1.Description of the current situation 3.1.1.Data on GIs and TSGs In January 2021, the EU geographical indication register, eAmbrosia, contained 3 306 GIs and 64 TSGs. In addition, the EU has concluded 34 bilateral agreements with third countries, protecting 1 593 non-EU GIs with an additional 777 non-EU GIs under consideration. Through these agreements EU GIs are also protected in the partner countries totalling more than 40 000 instances of EU GI protected in non-EU countries. Figure 2. Registered GIs and TSGs by EU Member States & non-EU countries – January 2021 Source: DG Agriculture and Rural Development During the period 2010 to 2020, the number of registered GI names increased by 27%, the number of registered TSG names doubled, but still represents only 2% of all the registered product names. Figure 3. Evolution of the number of GIs and TSGs (non-EU countries included) 2010-2020 Source: DG Agriculture and Rural Development A breakdown of the registered names by sectors puts wines in first place with 1 616 registered names (48%), followed by the food sector with 1 443 registered GI names and 64 TSG names (45%). Spirit drinks are in third place, with 242 registrations (7%). Only five aromatised wine products had been registered as of January 2021. Source: DG Agriculture and Rural Development In terms of variety of products, the most diverse is the sector of agricultural products and foodstuffs, covering 28 product categories . Altogether 1443 GI/TSG names are registered in this sector. The number relating to fruits and vegetables (403) is almost equivalent to the combined total for meat products and cheeses (429). This diversity of categories offers wide product choices and reflects consumer’ preferences. The following chart provides an illustration of such product diversity in the agri-food sector.

Source: DG Agriculture and Rural Development 3.1.2.Importance of GIs/ TSGs: Economic overview The total sales value of GI/TSG products in 2017 was estimated at EUR 77.15 billion in the EU-28 (EUR 74.76 billion excluding TSGs), accounting for 7% (6.8% excluding TSGs) of the total food and drink sales (EUR 1 101 billion at EU28). This is far from being a niche market. Exports of GI/TSG products to non-EU countries in 2017 were estimated at EUR 17.03 billion (EUR 16.95 billion excluding TSGs) covering 15.5% (15.4% excluding TSGs) of EU trade of food and beverages, considering that EU trade of the overall food and drink sector accounted for EUR 110 billion . In 2010-2017, sales under GI/TSG increased more rapidly than in the whole food and drink sector. This trend is observed at both EU and extra-EU levels. However, this did not apply for all GIs, the sales value of 64% of GIs grew over the period 2010-2017, while it remained stable for 3% and decreased for 33% of the GIs. In addition, GI exports increased to a lesser extent than non-GIs exports. Source: Study on economic value of EU quality schemes (adaptation)’ Source: DG Agriculture and Rural Development and Study on economic value of EU quality schemes (adaptation) The average value premium rate for GI/TSG products in the EU-28 was estimated in 2017 at 2.07. This value premium rate indicates that the sales value of GI/TSG products was on average (weighted) 2.07 times higher than the sales value for comparable standard products without a GI/TSG label. Both GI wines and GI spirit drinks fetched much higher prices than comparable standard products . The highest premium was for wines (2.85) and the lowest for food products (1.5). In addition, lower price volatility is observed than for the non-GI sector. Figure 8. Value premium rate (2017) Source: Study on economic value of EU quality schemes (adaptation)

3.2.Implementation at national and EU level 3.2.1.Application procedure The application process for new GI/TSG registrations and amendments to the product specification consists of two-steps: it starts in the country of origin with the submission of an application by a producer group (‘the applicant’) to the national authorities for assessment at national level. This preliminary national procedure includes the scrutiny of the application, followed by its publication for opposition. If the decision is favourable, the application dossier is sent to the Commission. The application is subject to a scrutiny procedure at EU level, consisting of an assessment by the Commission, followed by publication for opposition in the Official Journal C series. If no notice of opposition is received, the name is registered at EU level in the Official Journal L series. In case of oppositions, based on the outcome of the opposition procedure, the name is registered or rejected. The registered name, together with its supporting documentation and with subsequent approved amendments, if any, is made public in the EU GIs register, eAmbrosia. 3.2.2.Controls and enforcement Enforcement and controls are key for the effective implementation of GIs/TSGs at each stage of the value chain (e.g. production, preparation, distribution, placing on the market): from the compliance with the product specification (the upstream market) to the respect of GIs as Intellectual Property Rights placed on the market and the provision of trustworthy information to consumers (downstream market). The framework for GI/TSG controls and enforcement as defined in the EU law, is a combination of specific rules: the Official Control Regulation (OCR) (EU) No 2017/625 and the Directive on Enforcement of Intellectual Property Rights (IPRED) 2004/48/EC. The OCR applies to official compliance controls on the use and labelling of PDOs, PGIs and TSGs while IPRED requires Member States to provide for measures, procedures and remedies to ensure that IPR are enforced on the downstream market. In addition, specific rules on controls are detailed in each sector-specific GI regulation. The graph below provides an overview of the main elements of controls/ enforcement in the upstream and downstream sectors under the applicable legislation. The most frequent organisation in Member States is a central administration in charge of supervising the whole control procedure over the value chain, with some exceptions of regionalised organisations (for instance in Spain). The central competent authority (CCA) may delegate parts of responsibility to other competent authorities (CAs), and certain control tasks at producer level can be performed by control bodies (CBs). However, market controls (downstream) cannot be delegated to control bodies. This general structure varies from one Member State to another. Figure 9. GIs controls and enforcement Source: DG Agriculture and Rural Development 4.METHODOLOGY This section gives an overview of (i) the methodology used for this evaluation and (ii) its limitations. 4.1.Short description of the methodology

This evaluation is largely based on: ·in-house data and information analysis of GI and TSG schemes; ·the public consultation; ·the external evaluation support study on GI and TSG protected in EU (“evaluation support study on GI/TSG”); ·the external evaluation support study on economic value of EU quality schemes, GI and TSG (“study on economic value of EU quality schemes”); and ·the counterfactual analysis of impacts in rural areas by JRC “Causal estimates of Geographical Indications' effects on territorial development: feasibility and application“. The evaluation applies five evaluation criteria: relevance, effectiveness, efficiency, coherence and EU added value. 4.2.Data collection and the assessment Stakeholders had an opportunity to provide feedback on a Commission roadmap from 29 April to 27 May 2019. The Commission carried out a public consultation in order to give public authorities and all stakeholders the opportunity to express their views on the GI and TSG schemes. The public consultation was conducted from 4 November 2019 to 3 February 2020 on EUSurvey. The public consultation attracted 233 responses from respondents in 25 countries, including 21 Member States and four non-EU countries. It was complemented by stakeholder consultation in the framework of the Civil Dialogue Group meeting on 3 July 2020 and a high-level GI Conference on 25-26 November 2020. The Commission conducted its own internal assessment, based on in-house data from eAmbrosia and analysis of applications. External experts were commissioned for the evaluation support study on GI/TSG in order to obtain an independent evidence-based assessment of how the GI and TSG schemes work. The study used a vast range (quantitative and, to a large extent, qualitative) information sources and tools, as summarised below: Tools Scope EU level interviews EU level FADN analysis EU level Electronic survey with national authorities (27 answers) 28 MS National interviews & desk research 7 MS: CZ, FR, IT, ES, HU, DE and NL Electronic survey with producer groups (477 answers, 25% response rate) 17 case studies Research on national / regional schemes Electronic consumer survey (2 800 answers) Source: Evaluation support study on GI/TSG The JRC conducted a counterfactual analysis, which focused on the local presence of GIs in Portugal, as measured at the level of the municipality in which the products originate, and their contributions to the development of the rural economy in terms of employment, number of firms in agriculture, agricultural Gross Value Added and labour productivity (measured by turnover per employee). No weighting of the different sources was applied, it has to be noted that the sources were complementary. 4.3.Limitation and robustness of findings (1)Baseline For the purposes of assessing policy, the points of comparison for this evaluation are rather limited. The previous evaluation cannot be used as a baseline, as the reference period (1992 – 2006) was some time ago and its scope was limited to agricultural products and foodstuffs only. Therefore, this evaluation is the first fully fledged evaluation of the GI and TSG schemes. Where possible, a limited counterfactual analysis is used.

(2)Data availability The COVID-19 outbreak occurred in the data-collection phase of the evaluation support study on GI/TSG and had a considerable impact on stakeholders’ availability for interviews. Additional measures were taken to address problems encountered in the process of data gathering (e.g. extending deadlines, using phone interviews, electronic surveys and desk research). Although the quantitative data relating to the implementation of GIs and TSGs is broad, it is scattered and not collected in a systematic way, so sometimes not easily searchable. (3)Applicability of the conclusions It is difficult to draw conclusions that apply to all 3 306 GIs and 64 TSGs. Each GI and TSG contributes to the achievement of the policy objectives, but at the same time the success of an individual GI/TSG depends on many factors such as the strength of the producer group, clear product specifications, a large national market etc. Therefore, a representative sample of different GIs/TSGs in the evaluation support study of GI/TSG was worked out and more and less successful GI/TSG were analysed in the evaluation. (4)Public consultation not representative The representativeness of the response to the public consultation is limited as only 233 replies were received. This is a relatively small number compared to the reference population e.g. producers and consumers of GI/TSG products. In addition, some respondents may have answered on the basis of their specific interests and thus do not constitute a representative sample. The Commission has taken this possible limitation into account when analysing the results of the public consultation.

5.ANALYSIS AND ANSWERS TO THE EVALUATION QUESTIONS This section presents the assessment of the performance of the current GI and TSG schemes. The assessment is based on the five evaluation criteria of effectiveness, efficiency, relevance, coherence and EU added value. 5.1.Effectiveness This section evaluates whether the current GI and TSG frameworks have been effective in achieving their objectives. The six main objectives of the schemes are analysed in dedicated sub-sections. Firstly, the impact of the GI and TSG schemes on the functioning of the internal market is assessed (Section 5.1.1). The effectiveness of GI/TSG registration, enforcement and control systems is analysed under the fair competition for farmers and producers (Section 5.1.2), followed by the analysis of the protection of Intellectual Property Rights of GI (Section 5.1.3). The objective of fair return for farmers and producers is assessed in terms of competitive advantage and distribution of benefits along the value chain (Section 5.1.4). This analysis is complemented by measuring the contribution to rural economies in terms of improving incomes of farmers and employment (Section 5.1.5). The fore last point covers the effectiveness of the schemes in providing consumers with clear and reliable information on GI/TSG products (Section 5.1.6). The last section (5.1.7) is on safeguarding traditional methods of production and recipes, and is specific to TSG. Source: DG Agriculture and Rural Development 5.1.1.Integrity of the internal market Overall, the internal market policy aims to guarantee the free movement of goods, capital, services, and labour within the EU. The total sales value of GI/TSG products accounted for 7% of total food and drink sales in 2017. GIs/TSGs sales increased by more than 40% between 2010 and 2017. The overall increase in sales value is partly due to changes that occurred between 2010 and 2017, in particular the accession of Croatia and the inclusion of TSGs and GIs registered in that period, representing overall 21 % of the increase in value. Further, an important increase was observed for French and Italian wines, which, together, represent 30 % of the growth between 2010 and 2017. National markets were dominant, representing 58% of total sales value in 2017, while intra-EU trade was estimated at 20% (so 78% of GI/TSG trade took place on the EU market). This suggests that the GI and TSG schemes have a positive effect on the internal market by providing a common reference for trade and ensuring the same level of protection and authenticity of the products. It also shows that the framework is effective in enhancing trade in GI products. The CMO Regulation (for more details Section 5.4.4 Common Market Organisation) contains specific provisions allowing for supply management by producers of PDO/PGI cheese and ham. As outlined in Article 150 of the CMO Regulation, producers and groups of operators within the meaning of Article 3(2) of Regulation (EU) 1151/2012 are allowed, under certain conditions and for a limited period of time, to lay down agreements to regulate the supply of PDO/PGI cheeses. The aim of such derogations is to allow the producers to adapt their supply to market demand in order to ensure high quality and added value of the PDO/PGIs in the marketplace, which is particularly important for vulnerable rural regions. By facilitating the recognition of the products’ quality as well as by allowing for a certain degree of concentration of supply, farmers bargaining power vis-à-vis processors is strengthened.

5.1.2.Fair competition for farmers and producers The main objective of the EU competition rules is to enable the proper functioning of the internal market as a key driver for the well-being of EU citizens, businesses and society at large. To this end, the Treaty on the Functioning of the European Union (TFEU) contains rules that aim to prevent restrictions on and distortions of competition in the internal market. In the context of this evaluation, the assessment of this objective comprises of firstly, the analysis of the homogeneity of procedures for registration and secondly, controls among the different Member States. Effective controls at all stages (from farmers to consumers) guarantee that farmers/producers involved in the GI and TSG schemes do not compete on the market with other producers who use the protected names without complying with the GI/TSG rules. As detailed in section 3.2.1 Application procedure, a two level procedure applies whereby applications are first sent to the national authorities for a preliminary national procedure. Most Member States have a national framework in place for the implementation of GIs and TSGs. Based on the survey of the national authorities by the external contractor in the context of the evaluation support study on GI/TSG, 22 Member States indicated that national rules were set regarding GIs/TSGs and five indicated that there were no additional rules to the EU ones. The national rules mainly cover procedures for registration, amendment and cancellation. Procedures at national level differ from one Member State to another. Those with a long tradition of quality schemes tend to have stricter procedures for applications (e.g. additional economic study and involvement of a specific inquiry commission in France, organoleptic assessment for wines in Hungary, double scrutiny at regional and national levels in Spain). These stricter requirements are often balanced by stronger support for producers from the public administration in these Member States. The evaluations support study on GI/TSG concluded that the legal framework allows a fair competition for farmers and producers involved in GIs/TSGs value chains through the EU level scrutiny of applications which ensures the homogeneity of treatment of the applications submitted by the different Member States. Based on the above, the second level scrutiny at EU level is overall perceived as fair and homogeneous. As stressed in Section 3.2.2 Enforcement and Controls, enforcement and controls are key for the effective implementation of the GI and TSG schemes. The evaluation confirms that the general organisation and implementation of controls can be considered effective, with a better effectiveness at the production and processing stages than in the downstream sector. Therefore, the regulatory framework and control procedures provide sufficient guarantees to ensure that farmers and processors involved in GI/TSG schemes enjoy appropriate protection against other producers who use the protected names without complying with these rules or engage in other types of unlawful practices. According to the survey of national authorities in the context of the evaluation support study on GI/TSG, the average share of operators controlled is higher at the farm and processing stages than at the downstream stages of the value chain (wholesalers and retailers) as detailed below. Further, the survey of national authorities confirmed that the frequency of control at farm stage reaches 100% per year in several Member States for agri-food GI products (71% in the wine sector). However, it remains very limited in other Member States with rates as low as 0.6% for agri-food GI products and 5% in the wine sector. At processing stage, the frequency of control ranges from 25% up to 100% per year for all products, while at wholesale stage and retail stage the frequency of controls ranges between 0 and 35% in most cases. Only one Member State provided data for online sales, with a 5% frequency of control. Regarding the effectiveness of controls, the evaluation support study on GI/TSG underlines that the controls are effective, with better effective controls in the upstream sector. The lower effectiveness at downstream stages relates to the large number of stakeholders involved (any retailer or restaurant can use any GI/TSG product). This is confirmed by the case studies and the producer groups’ survey, in which 85% of the respondents considered that controls at farm and processing stage to be as effective, while 48% felt the same about the wholesale stage controls. This lower level of confidence in the controls is observed at all stages of the downstream sector. Completely agree Somewhat agree Neutral Somewhat disagree Completely disagree Production stage 60% 36% 4% 0% 0% Processor stage 52% 48% 0% 0% 0% Wholesale stage 22% 48% 26% 4% 0% Retailer stage 33% 50% 13% 4% 0% Online sales 23% 32% 23% 18% 5% Source: Evaluation support study on GI/TSG (based on the survey of national authorities) National authorities agreed that, in general, controls are completely or somewhat effective but they underlined the limits of controls on GIs and TSGs for online sales. 18% of the national authorities had no opinion on the effectiveness of controls on online sales. To respond to enforcement authorities’ and producers’ clear need for better and easier access to GI information, the GIview portal was launched in November 2020. With entries for all GIs protected in the EU, its main purpose is to enhance transparency, ensure the public availability of information, and improve the enforcement of IPR. It will also give GI representatives access to the EU’s Intellectual Property Enforcement Portal (IPEP), enabling them inter alia to file a customs application for action (AFA) and have direct contact with anti-fraud authorities, customs and police. In summary, the general organisation and implementation of controls ensure sufficient protection of intellectual property rights, with particular shortcomings as regards the downstream sector and on-line sales. 5.1.3.Protection of intellectual property right In general, intellectual property includes all exclusive rights to intellectual creations, e.g. trade marks, patents, copyright etc. In this context, GIs identify a product and indicate its territorial origin based on which the right is granted, justified on 1) the distinctive qualities or 2) the reputation of the product bearing the GI, both linked to the said territory. An important feature of the GI scheme is that it confers a collective form of Intellectual Property Right (IPR), granting the right to producers in a defined geographical area to use the registered name if they comply with a product specification. This feature is different to trade marks in general as the latter gives an exclusive right to the owner. The EU regulatory framework is intended to provide protection against fraud, counterfeits, and deceiving practices. Names of products registered as GIs at EU level are legally protected against (i) use for identical and comparable products, (ii) use for non-comparable products that exploits the reputation of the GI, (iii) evocation, misuse and imitation on products or services and (iv) any other misleading indication and misleading practices . Furthermore, GI names are protected ex officio. This implies that Member States shall take appropriate administrative and judicial steps to prevent or stop the unlawful use of the registered names of products that are produced or marketed in the Member States. Therefore, EU legislation provides for a high level of GIs names protection.

Controls and enforcement of GI rights, including internet and E-commerce For GI names to benefit from the high level of legal protection, a robust control and enforcement system must be in place across the EU. While the general rules of such a system are set out in the EU legislation, the organisation and implementation falls within the Member States remit. Consequently, various systems are being implemented among the Member States. As regards the types of non-conformity, the national authority survey suggests that most common infringements detected differ largely depending on the types of products covered. Main infringements reported concern: the rules of production for agricultural products and foodstuffs; the misuse of protected names for the wines and aromatised wine products; the labelling requirements for spirit drinks and aromatised wine products. Although analysis from the evaluation support study on GI/TSG found that, in general, control procedures are effectively implemented, some weaknesses were identified pointing to lower effectiveness of the controls in the market compared to upstream stages including export markets and online sales (see section 5.1.2). The following reasons were identified for this lower effectiveness: -Large number of operators at downstream levels (retailers, wholesale, etc…) and a decrease in the share of operators controlled at these downstream stages -Difficulties in carrying out efficient controls on online sales. GIs are vulnerable to mis-selling, in particular on online marketplaces to which EU consumers have ready access. According to a 2016 study , the EU GI infringement market totalled approximately EUR 4.3 billion in 2014, accounting for 9% of the total EU GI product market for that year. EU consumers are directly impacted with a damage of EUR 2.3 billion per year. The same report cites French control data infringements per type of retailer that indicate that the scale of infringement via the internet is double the average. The implementation of official controls and enforcement of GI rights allow for a good level of protection against misuses of GI names at EU level. The assessment in the evaluation support study on GI/TSG also revealed, based on the producer group survey, that controls at market stage are more effective in the Member States of production than on intra- and extra-EU markets. EU law covers the misuse of protected names on the internet, this protection focuses on "commercial use" and "comparative" or "misleading advertising", but not on the registration of a domain name. Domain names that are identical or similar to GIs are mostly registered without any recognition of prior GI rights and can work to the detriment of both consumers and producers. In 2011, the Internet Corporation for Assigned Names and Numbers (ICANN) which is in charge of the management of the domain name system (DNS) decided to increase the possible number of domain names, thus allowing for extensions such as “.wine”, “.beer” or even “.champagne”. However, GIs are not considered as a valid IPR title by the Uniform Domain-Name Dispute-Resolution Policy (UDRP) which rules disputes on domain names; by contrast UDRP considers the Intellectual Property Rights (IPR) as trade marks. As a result, the enforcement of IPR for GIs is weakened on the internet. The case of Champagne vs Steven Vickers (WIPO Case No. DCO2011-0026) illustrates that the status of a GI was not sufficient to prevent the registration of the domain “champagne.co”. In conclusion, as regards the protection of the IPR, the evaluation confirms that GI names benefit from a high level of legal protection in the EU. The effectiveness of the organisation and implementation of controls in the Member States ensures a good level of protection against misuses of GIs names. However, differences in implementation may cause difficulties when it comes to enforcing producers’ IPR outside the Member State of production. In addition, GIs and TSGs cover a wide range of products and are sold through various outlets (including online), which further hampers their effective protection. Desk research produced limited information on controls on GI/TSG products sold online. To conclude, the enforcement of IPR and use of GI names in domain names on the internet remains an issue. Improved use of digital tools could facilitate the control procedures (e.g. automatic registration following the validation of applications, online platform to follow-up the application process). 5.1.4.Fair return for farmers and producers Article 39 of Treaty on the Functioning of the European Union (TFEU) sets out the specific objectives of the CAP. One of the objectives is to ensure a fair standard of living for farmers. This objective is also reflected in the objectives of the GI and TSG schemes - the fair return for farmers. This evaluation assesses whether the schemes give farmers and producers a competitive advantage and how benefits are distributed along the value chain. In general a competitive advantage is a favourable market position that can provide a business with more customers and higher profits. It is the basis on which the brand, product or service is perceived as superior to its competitors. This evaluation measures competitive advantage in terms of (i) a possible price premium, (ii) profitability, (iii) price stability and (iv) other assets such as the relationship between GI and tourism. Price premium Both the evaluation support study on GI/TSG (based on case studies, a survey of producer groups, and desk research) and the study on the economic value of EU quality schemes, found evidence of a price premium for GIs and TSGs. As indicated in Section 3.2, the average value premium rate for GI products in 2017 was estimated at 2.07, i.e. on average the sales value of GI/TSG products was 2.07 times higher than that of comparable non-GI/TSG products. The analysis has some limitations, as several external factors might also contribute to the price differences, depending on the product. While the level of price premium may vary significantly from one product to another depending on economic environment of the product, the sector and Member State, as well as the strategy implemented by operators, the producer group survey found that GI registration is considered to result in an improvement of prices at final product stage (for 56% of the respondents) and at agricultural stage (for 55% of respondents). Case studies and desk research indicated that, in over half the cases analysed, the stakeholders received higher income from GI value chains than from non-GI value chains. While a price premium does not necessarily mean a higher profitability, it can lead to higher margins or a better commercial position. In particular, the price premium may cover the extra expenses linked to specific production methods, and the quality (resulting from the extra expenses), as authenticated through the protection of the name, allows producers to enter new markets. A price premium confers a competitive advantage, as it allows GI/TSG producers to cover the extra costs, involved in ensuring the quality level and complying with the GI/TSG specifications. Even if the price premium only covers the extra costs, the competitive advantage also opens up the sales opportunities that come from having a differentiated product (mid-range or high-end products) on the market. Profitability

The evaluation support study on GI/TSG found a clear positive association (or correlation) between GIs and farmers’ and processors’ profitability in some Member States (Italy, Spain and Portugal) and a less clear link in others (Bulgaria and Greece) based on the FADN data analysis. For example, GI farms tend to provide more output per hectare and more farm net income/hectare regardless of the size of the farm. This difference is further accentuated as farms get larger. However, this positive impact on income is not systematic, as it covers 52% of GI/TSG farmers and 54% of GI/TSG processors according to the survey of producer groups and about half the GIs/TSGs covered by case studies in the context of the evaluation support study on GI/TSG. Price Stability Analysis shows a lower price variability for GI products overall (as compared with non-GI products), even if this is not observed for all GIs. This relative stability could be the consequence of a policy of long-term contracts that can guarantee price levels between producers and downstream operators. For instance the producer group managing the PGI Pays d’Oc referred to a policy of promoting long-term contracts between wine producers and large-scale companies that own trade marks. Multi-annual contracts ensure a stable income for producers and avoid difficulties linked to the impact on production of possible weather events. In the case of PDO Ribera del Duero, long-term contracts between grape producers and winemakers are promoted as a means of guaranteeing certain benefits. Similarly, the PDO Basilico Genovese producer group explains how producers have contracted with the downstream sector to guarantee a price level for a given volume. Operators producing PDO Jabugo point out that prices of PDO hams are more stable than those for comparable non‑PDO products. Côtes du Rhône stakeholders regard long-term contracts as a better way of developing the value chain, although their full potential has yet to be exploited. Long-term contracts are not always considered advantageous for all operators in the supply chain. In Hungary, producers of Pálinka indicated that long-term contracts between distillers and fruit producers are not common. Fruit production can vary significantly from year to year as a consequence of climate hazard and fruit tree production cycles. In a context of low seasonal production, producers can get a better return by selling to the fresh sector. Several studies across sectors and Member States provide proof of the price stability associated with EU quality schemes. However, the limited price volatility does not apply for all GI products – for some, prices follow those for the non‑GI counterpart product. Other benefits/assets (tourism attractivity) Other benefits of the GI and TSG schemes include the diversification of on-farm activity, e.g. processing (cheese making, etc.), new types of sale (direct sales, e-sales) and/or agri-tourism. The main benefit is greater attractiveness for tourists. A particular illustration of this is the development of ‘oeno‑tourism’ in wine‑growing areas, due to the image of well‑known wines and their strong regional identities. GIs have contributed to the emergence of designated routes for tourists, gastronomy tours and farmhouse services. Their synergies with tourism have been highlighted in case studies for Ribera del Duero, Côtes du Rhône, Langhe, Pays d’Oc and Tokaj/Tokaji. In 2001, UNESCO recognised the Tokaj region as a ‘world heritage’ landscape. The strong connections between GIs and tourism apply in other sectors. The farms producing PDO Beaufort cheese sell 20% of their produce through direct sales and contribute to the local tourism infrastructure by preserving the natural landscape and ski slopes through high mountain grazing. However, a study has found that the presence of PDO cheeses in the northern French Alps does not seem to lead the farms to participate directly in tourist activities. In this case, the PDO registration stimulates tourism, but the benefits are mostly enjoyed by non-farmers. The potential benefits of GIs for tourism are restricted to some products and geographical areas. Operators also explained that a GI in itself is not always a driver for tourism or other indirect benefits such as on-farm processing or direct sales. Case studies in the context of the evaluation support study on GI/TSG showed that this is in particular the case for PDO Gouda Holland, PDO Basilico Genovese and GI Pálinka. Distribution of benefits along the value chain This topic refers to the distribution of the value created by the GIs and TSGs along the marketing chain between farmers, processors, wholesalers, and retailers. A fairer distribution results from a better balanced bargaining power (the ability for an economic actor to discuss the price and commercial conditions) between all stakeholders, especially a reinforcement of the farmers’ position with less power towards the mass retailing companies. An increase of bargaining power for the upstream sector may be observed because of the implementation of the GI/TSG schemes, but this is not systematic. Case studies and desk research in the context of the evaluation support study on GI/TSG indicate that this depends on the organisation of the supply chain and the importance of the specifications at farm stage. If quality and volume are controlled, the bargaining power of upstream actors (farmers and/or processors) tends to be stabilised or increased. In some cases, processors concentrate the economic benefits while retailers or tourism operators do not get extra profits for instance in case of PDO Jabugo. While in other cases, exporting companies get a larger benefit as the GI/TSG labels offer opportunities on the intra-EU and extra-EU markets, according to operators involved in the production of PDO Tokaj/Tokaji and PGI Bayerisches Bier. Advantages are not only about better prices: they may involve better access to new markets, price and volume stability, long‑term perspectives and the ability to choose one market over another (e.g. direct sales, large-scale retail, specialised channels or exports) . Products Type of product Scheme Comment on the distribution of benefits along the supply chain Spišské párky Sausages TSG No information Salate von der Insel Reichenau, Feldsalat von der Insel Reichenau, Tomaten von der Insel Reichenau, Gurken von der Insel Reichenau Vegetables (salad, tomatoes, cucumbers) PGI No significant benefits along the supply chain. Jabugo Ham PDO Processing stage is the first stage to take benefits from the PDO scheme. The distribution of benefits does not fully transfer along the supply chain, at the expense of farmers Ribera del Duero Wine PDO The benefits are concentrated for the profit of winegrowers Cordero Manchego Lamb PGI The distribution of benefits along the value chain is considered fair by stakeholders, from farmers to trade operators Beaufort Cheese PDO Both farmers and cheese producers benefit from being involved in the Beaufort PDO scheme. No data has been collected among wholesalers and retailers. Cote du Rhône Wine PDO Benefits are shared among the different stages of the value chain Pays d'Oc Wine PGI Producers benefit from higher prices than other PGIs and access to an important and growing market. Operators take benefit from long term contracts and guarantee of quality. Tokaj/Tokaji Wine PDO Export operators tend to take a better benefit from the PDO scheme, with a higher demand and higher prices Dauno Olive Oil PDO Benefits of the PDO tend to be concentrated at the processing/bottling level dealing with important volumes Speck Alto Adige/Südtiroler Markenspeck/Südtiroler Speck Ham PGI The PGI does not cover agricultural stage. Basilico Genovese Basil PDO The higher price obtained from the PDO product is directly absorbed by the primary producers, as basil is sold fresh. Langhe Wine PDO Benefits are concentrated for small/medium size companies, covering all stages of the supply chain Gouda Holland Cheese PGI No information Bayerisches Bier Beer PGI The main benefit of the GI scheme is observed for operators involved in the export markets, especially on the extra-EU markets. Source: Evaluation support study on GI/TSG The involvement of the agricultural stage in the GI/TSG value chain is crucial for the farmers’ bargaining power. Involvement of farmers is stronger for PDOs as all production stages must take place in the demarcated area. This also covers 78% of the PGIs in the agri-food sector and 61% of the GIs in the spirit drinks sector. This suggests that GIs/TSGs are strong drivers for implementing frameworks where farmers can increase their bargaining power.

However, the evaluation also found that the structure and roles of the GI producer groups and the tasks they are entitled to conduct differ widely between sectors and Member States. Applicants’ (producer groups’) role in the application for registration is laid down in the Regulations on GIs/TSGs. Their role in the management of the scheme is not set out at EU level in the case of wines, aromatised wine products and spirit drinks, although it is in the case of agri-food products. GI producer groups play an essential role in applying to register a GI, proposing amendments to the product specifications and submitting cancellation requests. However, not all GIs are systematically managed by structured producer groups. In practice, producers join forces as a group to submit the application to register a GI, but they often stop acting together when it comes to marketing the product or enforcing the GI rights. While coherent, enduring groups are well established in some Member States, few GIs are managed by such groups in many Member States. Case studies in the context of the evaluation support study on GI/TSG confirm that specific additional rules may exist at national level (Spain, Italy, France), while in other Member States, involvement of producer groups in managing their GI is not regulated (Hungary, Netherlands). Some Member States have governance structures in place for producer groups, but this is not common. For instance, in France both producer groups and Interbranch organisations, composed of vine growers and wine processors (co-operatives, wholesalers), play a strong role in the governance of PDO wines. Of the 230 respondents to the public consultation, 70% agreed that the EU quality schemes meet their objectives as regards helping to strengthen producers’ position in the value chain and protecting/enforcing their rights. It would therefore, appear that the benefits for farmers and producers depend strongly on the implementation of the GI/TSG, the target market and the role of producer groups. 5.1.5.Contribution to rural economies This section assesses the extent to which GIs and TSGs have contributed to the development of rural economies, in terms of improving farm incomes and employment. Rural areas account for half of Europe’s surface area and around 20% of its population. Rural economies are diverse, involving many different industries (agriculture, food processing, tourism, services, etc.). In particular, the agri-food sector is key for the development of rural areas. Farmers’ income Farmers’ incomes consist of the difference between expenses linked to production and receipts from the outputs (sales, services provided). At farm level, beyond a higher income, greater income stability is also seen as an improvement. As explained in Section 5.1.4. Fair return for the farmers and producers, GI farms often generate a better income than non-GI farms. However, this advantage does not apply to all GIs and TSGs, as demonstrated by the producer group survey, FADN analysis in the wine sector, case studies and desk research. The producer group survey indicated that 52% of producers generally consider the GI and TSG schemes to be drivers of better incomes at farm stage, and 54% at processing stage. Employment in rural areas Analysis of Eurostat data on the food and drink industry and the study on the economic value of EU quality schemes indicate that sales of GI products have grown faster than sales in the food and drink industry as a whole, which has led to more job growth in the GI segment. Although the analysis could not distinguish rural employment from total employment, it can be assumed that employment at agricultural (production) stage is almost exclusively in rural areas in most Member States. Based on the cases analyzed in the context of the evaluation support study on GI/TSG (25 cases studies in e.g. Poland, Spain, Italy), GI schemes generally stimulates employment. French and Spanish cases indicate that the number of farms and processing companies involved in the GI supply chain has increased, resulting in turn in more jobs in the areas of GI production. Therefore, it can be concluded that GI production plays a positive role in local employment. A lack of evidence prevents us from drawing conclusions as regards TSG. This analysis is complemented by the findings of the JRC Technical Report “Causal estimates of Geographical Indications' effects on territorial development: feasibility and application”. The report proposes a quantitative approach for estimating the causal impacts of GIs policy on territorial development. When applying the approach to yearly data on registered products and the territorial development of municipalities in Portugal, the report finds a substantial contribution from the GIs policy to territorial development. In particular, it identifies a significant positive impact of the number of registered GI products on agricultural Gross Value Added, agricultural employment and the number of firms in agriculture in Portuguese municipalities over the period 2004 to 2018. This effect is most significant for the number of registered food names (relating to wines and spirit drinks) and for rural areas. No statistically significant impact (measured by turnover per employee) was found on labour productivity in the agricultural sector. In summary, the analysis suggests that GI farms’ incomes are better than non-GI farms; although the benefits of GI/TSG schemes are far from being systematic. Further, GIs have a positive impact on employment in several cases. 5.1.6.Clear and reliable information on the product to consumers This section examines how effective the GI and TSG schemes have been in providing consumers with clear and reliable information. The following terms are used in this section: “awareness”, “perception” and “understanding”. Awareness is the extent to which stakeholders have knowledge of the existence of the schemes or designations, it may cover the indication (for instance “protected designation of origin”), the acronym (e.g. “PDO”), the symbols and the protected name (e.g. “Parmigiano Reggiano”). Perception relates to the attributes that stakeholders associate with schemes or products (guarantees of traceability, tradition, etc.). Understanding is the extent to which the perception of stakeholders matches the actual guarantees provided by the schemes. Knowledge and understanding of GI/TSG by consumers

A consumer survey and desk research conducted in the context of the evaluation show that awareness of EU quality schemes (indications, acronyms and symbols) differs widely across Member States. It is higher in Member States with well‑established GI/TSG schemes and numerous protected names (e.g. Italy, France and Spain), but in most Member States generally lower than recognition of national/regional schemes. Recent data from a Eurobarometer Survey confirms that public awareness of EU quality logos is relatively low: 20% for the PGI logo (up 2 percentage points since 2017), 14% for the PDO logo (down 4 pp) and 14% for the TSG logo (down 1 pp ). In addition, 20% of those surveyed were not familiar with any of the logos. Furthermore, final consumers may confuse the different labels: 40% did not see a difference between PDO and PGI and 34% between PGI and TSG. Based on the consumer survey in the context of the evaluation support study of GI/TSG, consumers who are aware of the GI and TSG schemes tend to understand the following key features: 59% associate TSGs with a “traditional product” (34% for PDO and 29% for PGIs); and respectively 51% and 57% associate PDOs and PGIs with a “link to a geographical area”. However, consumers do not fully understand their meaning: 32% associate TSG with a specific area of production (while there is no defined geographical area for TSGs); only 22% to 24% associate PGIs and PDOs with a specific know-how (36% for TSGs); and only 33% associate PGIs with a guarantee as regards methods of production (41% for both PDOs and TSGs). A survey in the framework of the evaluation support study on CAP measures in the wine sector highlighted a knowledge deficit among EU consumers (in France, Germany, Spain and the UK) with regard to the PDO/PGI scheme applying to wine. Only a few respondents knew the PDO/PGI labels and were aware that wines with a PDO/PGI designation display specific characteristics. PDO/PGI labels are thus less well known than the ‘organic farming’ label. Levels of knowledge differed significantly between the net importer Member States (Germany and the UK), where only 14% of respondents knew the PDO label and 19% the PGI label, and Member States with large GI production (France and Spain), where 31% knew the former and 48% the latter. In addition, the public consultation included questions on the recognition and meaning of the symbols for the three EU quality schemes (PGI/GI, PDO and TSG). 60% of the 230 respondents agreed that the visual presentation is generally clear enough to distinguish PDO and PGI/GI symbols/schemes. However, it was felt that the visual difference between the PGI/GI and TSG symbols is less clear. Source: Public consultation As regards the significance of EU quality schemes, the respondents of the public consultation most often interpreted them with the following aspects: - the product is entirely produced in one specific geographical area; - the quality of the product stems from its traditional methods of production and/or recipes; - the product is produced according to an established specification; and/or - the quality of the product is certified by a control body Further, respondents were asked to compare the symbols with national/regional food quality logos. Over 44% of the 95 respondents found the PDO symbol more recognisable (a higher rate than for the PGI/GI and TSG symbols). The Impact Assessment report on the revision of GIs and TSGs will look at different options for addressing these findings on effectiveness e.g. additional communication and information actions, guidelines, changes to the use of the logos etc.

Source: Public consultation Relevant and sufficient information for consumers Vast information regarding the characteristics of GIs and TSGs is available for consumers at EU and national level, mainly on the web: ·information on the Europa webpage; ·list of protected denominations and link to their product specifications available in the EU register (eAmbrosia); ·GIView, an interface portal on GIs containing official registered data and extended data; ·the Italian authorities display information about Italian GIs on their webpage; selected information on the Italian websites Qualigeo / Qualivita; ·French GIs/TSGs are presented on the website of the Institut national de l’origine et de la qualité (INAO) ; ·the Spanish authorities display very precise qualitative and quantitative data on Spanish GIs/TSGs; ·many other Member States have dedicated webpages; and ·based on the survey of producer groups, 82% of them have created websites to present and promote their GIs. The above sites provide information on: ·the characteristics of the products: added value, appearance, flavour, and (in some cases) chemical content of the product; ·the origin of the product (for GIs); ·the history of the product; and ·the group in charge of managing GI or TSG.

The public availability of such a wide range of information at EU and national level shows its importance and covers various aspects of the GI and TSG schemes (detailed explanation of origin where relevant, inherent characteristics of products, processing methods, etc.). In addition, producer groups provide complementary information through communication actions (websites, fairs, etc.) that account for a substantial part of their budget. In the public consultation, 72% of the 230 respondents agreed that the schemes provide consumers with useful information about the geographical origin and specific characteristics of products (about 20% disagreed). Based on the above, a large amount of information is available for consumers on GI/TSG products’ history, origin, inherent characteristics and processing methods (based on desk research). However, the effectiveness and relevance of the communication method is questionable, as awareness and understanding of EU schemes and logos remain limited. 5.1.7.Safeguarding traditional methods of production and recipes The TSG scheme aims to provide producers with a tool to communicate effectively the quality and value-adding characteristics of their products, improve consumer protection and raise awareness of the nature and characteristics of the products purchased. However, uptake of the TSG scheme has been low, with only 64 names registered as of January 2021. The main obstacle to the scheme’s success concerns producers’ perceptions of the lack of added value of registering a TSG, due to a combination of factors: ûlow consumer awareness of TSG products; ûthe complex system (similar procedures as for GIs); and ûlack of IPR protection – operators from other regions can use the name as long as they comply with the product specifications. While GI producers have access to the enforcement tools available to all IPR products on the internal market, this is not the case for TSG producers. Moreover, the absence of a link to the territory for TSGs, and the related fact that the products can be produced in several Member States, may make it difficult for national control bodies to carry out controls as there might be confusion as to which competent authority is responsible. 5.2.Efficiency The evaluation found that the framework for GIs and TSGs is regarded as efficient, when weighing the benefits against the costs borne by private stakeholders and public bodies. The overall costs for public (national and EU) authorities relating to the management and control of GIs/TSGs are estimated at EUR 93 million per year for all GIs at EU 28 level; this accounts for 0.12% of GIs/TSGs sales value. Based on data from three big Member States, around 80% work on control and 15% on the management of the schemes. As regards costs at EU level, the average registration or major amendment of a file costs an estimated EUR 33 500 (this includes administration, translation of files, letters and decisions/regulations, scrutiny and cross-checks, and internal consultations in the Commission). The average costs of a minor amendment for agri-food products and a standard amendment for wine are estimated at EUR 19 500 and EUR 26 600 respectively. The direct costs for producer groups, in particular for management of the scheme and its control are estimated to reach 49% of the total budget of producer groups representing on average 0.5% of the total sales value of the GI/TSG concerned. A lower efficiency can be observed for the smallest GIs/TSGs (sales value of less than EUR 1 million) with producer groups’ costs accounting for 5% of sales value. At the level of individual operators, the share of direct costs relating to the schemes seems to be limited in most cases, varying between 0.57% and 2.27% of the total sales value. However, due to natural constraints and strict specifications rules, additional costs for producers appear to be higher than for processors. The costs for operators as a proportion of their total operating costs was not analysed due to a lack of data. To conclude, the evaluation shows that actual costs relating to registration procedures remain fairly low compared to the sales value of GI/TSG products. No analysis was carried out on the minimum efficient scale for very small‑scale GI production. Hassle costs related to the length of procedures also occur with the registration procedure and were mentioned as the main source of administrative burden. In 2018 at EU level, the largest share of the procedure duration was related to scrutiny (17.5 months) and opposition procedure (4.4 months). While the regulatory framework provides deadlines for the scrutiny of applications and opposition procedures conducted at EU level – 6 months deadline for the first round of scrutiny at EU level – several rounds of comments and requests for revisions are possible. Within this time period, documents are also translated (file, letter, publication for opposition, registration regulation). Opposition procedures should last respectively 2 and 3 months for wine and for other products if no opposition is lodged. If no further explanation is requested by the EU and if no opposition is lodged, the best timeframe to process a registration at EU level would reach 8 months for wine and 9 months for other products. The picture is similar for amendment procedures, the length of which is identified as the main issue (for the same reasons as for the registration procedure).

Figure 13. Average duration of scrutiny and opposition procedures at EU level between 2008 and 2018 in months Source: Evaluation support study on GI/TSG While no quantitative data was available to assess the average duration of the registration procedure at national level, from interviews with producer groups, it seems that the whole registration procedure (at Member State and EU level) varies from 1 to 10 years (including an opposition notice) with an estimated average of 5 to 6 years. Given that the registration procedure at EU level takes 22 months on average, this implies a duration of the procedure at national level between 38 months (3.2 years) and 50 months (4.2 years). Desk analysis confirms these figures. For instance, in France, a study on fruit and vegetables showed that the preliminary national scrutiny procedures, from the filing of the application to the vote by the national committee, lasted at least three years for PGI applications and five years for PDO applications. At EU level, procedures lasted 22 months on average in 2018, down by 44 % from 2008. While scrutiny of an application is essential, besides ensuring compliance with the product specification to achieve the objectives of the scheme, some areas of potential simplification could be explored, such as: ·a clearer distinction between minor and major amendments and a simplified procedure for minor amendments in the agri-food sector (similar to that for wines and spirit drinks); ·harmonised procedures and controls at EU level; ·improved skills and availability of staff at Member State level; and ·better use of digital means to facilitate the procedures The 2021-2027 CAP reform includes provisions aimed at streamlining the procedures for the agri-food sector; this would help reduce administrative burden for producers and national/EU authorities. Rural development funds co-finance GI producers’ costs, helping them to join quality schemes and engage in information and promotion activities. The latest information available (end of 2018) showed a fairly equal distribution between both types of operation (52% promotion and information and 48% for new participation in quality schemes). However, use of such support is quite limited in terms of scope and funds, and varies among Member States. Applying for the support can be burdensome and hampered by the weak organisational structure of some producer groups. The evaluation support study on GI/TSG shows that in the 2014-2020 programming period, only 56 out of 118 Rural Development Programmes included this measure aimed at strengthening the quality schemes, allocating EUR 594 billion ( 0.66% of the 56 RDPs’ overall envelope ). In addition, the support is not for GIs and TSGs only. It covers a wide range of EU, national and voluntary agricultural product certification schemes including organic schemes. The public consultation raised an issue of administrative costs (time, cost and national authorities’ capacity), but fewer than 10% of the 217 respondents considered it is a disincentive to participate in the EU quality schemes. Respondents to the public consultation were also asked to give their opinion on the costs and benefits of registrating products under EU quality schemes. Consumers expressed more or less equally positive, neutral and negative opinions on the cost and benefits of both GIs and TSGs. National and regional authorities pointed to higher costs relating to the registration of GI, and producers to higher registration costs under the TSG scheme. The public consultation also tested public opinion on simplification i.e. whether greater efficiency could be achieved by a unified registration, amendment and cancellation procedure for all EU quality schemes. A high number of respondents (83%, N=224) agreed with the idea. 5.3.Relevance This section evaluates whether the current GI and TSG framework meets the needs of farmers/producers organisations, national authorities and consumers. In addition, it assesses its relevance in the light of the needs of rural areas. The analysis also covers the challenges of environmental sustainability and animal welfare. 5.3.1.Producer groups and national authorities The theoretical analysis of the cause-effect relationship and empirical analysis (electronic survey of national authorities and producer groups) in the context of the evaluation support study on GI/TSG confirmed the relevance of all the objectives of the GI schemes for agricultural products and foodstuffs. The objectives reflect national authorities’ actual needs to a greater extent than those of producer groups (scores for the former are always significantly higher than for the latter). The objective "Ensure uniform protection of the names as an Intellectual Property Rights in the territory of the EU" is considered the most relevant for all GI schemes, which have the highest score.

Source: DG Agriculture and Rural Development adapted from the evaluation support study on GI/TSG For producer groups, PDO products show a higher level of relevance compared to PGI products as they denote a stronger link with the territory and therefore a greater sense “cultural identity”. For them, “Provide consumers with clear information on the value-adding attributes of the product” and “Protect the legitimate interests of consumers” are the most relevant objectives. This is confirmed in the Member States most involved in the schemes (France, Italy and Spain), and for most agri-food sectors. The fact that these two objectives concern relations with consumers would imply that "Business to Consumers” is the key actual need for producer groups. As regards TSGs, the theoretical and the empirical analyses show that all the general objectives of the schemes (except ”Integrity of the internal market/market transparency” for producer groups) are relevant. According to the electronic survey “Safeguard traditional methods of production and recipes” is the most relevant objective for the producer groups. 5.3.2.Consumers Based on Eurobarometer results the objectives of the schemes are also considered relevant for consumers, however, due to the low awareness and understanding of the schemes in some Member States, such relevance is not necessarily perceived by consumers. Nevertheless, the guarantees provided by GIs/TSGs (as regards product origin, raw material, traceability/authenticity, method of production, specific know-how, etc) cover factors that influence consumers’ choices when purchasing food products. Although environmental sustainability and animal welfare are not the main objectives of the GIs/TSGs Regulations, and contribution to a healthy diet is not among the criteria for the schemes, GI producers have started to respond to growing societal demands by integrating such concerns into the product specifications. However, these attributes are often not conveyed to consumers in a structured manner and are not promoted effectively. Recently, steps have been taken to address this weakness, e.g. the GIview database allows producers to convey messages on the sustainability attributes of their GI products. 5.3.3.Relevance regarding the needs of rural areas Rural areas cover 44% of EU territory and 80% or more of some Member States’. The analysis showed that GIs are considered a strong asset for rural territories. This finding emerges from the 2014-2020 Rural Development Programs and their implementing reports and is confirmed by numerous studies at regional level or on local production systems. Data from the survey of producer groups and academic literature also indicate that GIs are important for producers in areas facing natural or other constraints. These results are in line with the expected impact of GIs on the development of the rural economy. The analysis of the literature came across no specific findings on names protected as TSG. The strengthening of GIs/TSGs through rural development policy responds primarily to the need to enhance integration in the agricultural sector and respond to consumer’ demand for food quality (consumers increasingly select products on the basis of production practices and want to know more about how their food is produced). Rural development funds provide support for joining the schemes and for information and promotion on quality products (see Section 5.2). The importance of the measures varies across regions, with some expressing high demand as regards quality schemes. GIs/TSGs also are regarded as an important tool for promoting regional identity, in particular in countries with a history of GI protection. Economic operators, especially from southern EU countries, are generally convinced of their role in terms of maintaining and promoting the local cultural heritage. 5.3.4.Relevance regarding the environmental sustainability and animal welfare Civil society is becoming more and more concerned about the sustainability of food production, including under the GI schemes. At policy level, this is also reflected in the Farm to Fork Strategy. In recent years, GIs and TSGs have taken up the challenges of environmental sustainability and animal welfare. Some have already incorporated additional specifications in this respect (e.g. limitation on the use of energy and water, improved waste management, bans on the use of genetically modified feed for cattle), going beyond the provisions of EU regulations, while for some others such changes are in the pipeline. The analysis reveals the inclusion of more stringent environmental protection rules in 41% of the case study sample (seven Member States) and more stringent animal welfare rules in 67% of the case studies involving animal production. Almost half the case study sample for the evaluation support study on GIs/TSGs reported ongoing initiatives relating to environmental rules, but no one as regards animal welfare rules. Most of the producer groups surveyed in the context of that study said that their product specifications take account of environmental or animal welfare issues (64% and 61% respectively). Of those, 60% have part of their production made in accordance with the rules for organic production. This signals a positive link between organic and GI schemes. Producers consider that incorporating voluntary environmental commitments in the product specifications has a positive impact on the landscape, thanks to traditional farming techniques (e.g. grazing). They also favour more extensive methods of production by imposing maximum yields. Also, prescribing a particular genetic resource as raw material is seen as promoting biodiversity. In the public consultation, 56% of the respondents agreed that the EU quality schemes help to protect natural resources or landscapes. At present, only a few Member States indicated that there are public initiatives encouraging the GIs/TSGs producer groups to adopt voluntary rules of production relating to environmental sustainability and animal welfare. In conclusion, the incorporation of such considerations is a slow process, with different levels of commitment depending on public and private initiatives. To conclude, the current GI and TSG framework is relevant in meeting the needs of producers and stakeholders. However, the current four Regulations and their objectives do not meet the requirements stemming from the changed political priorities and societal developments, such as sustainability, digitalisation, and internet sales. Legislative changes would be required to successfully address some of these developments.

5.4.Coherence This part of the analysis covers coherence between i) GIs and TSGs, ii) GIs and EU trade marks, iii) GIs/TSGs and national/regional schemes, iv) GIs/TSGs and other CAP instruments and measures and v) GIs/TSGs and wider EU policies. 5.4.1.Coherence between GIs and TSGs For the agri-food sector, GIs and TSGs were both legislated in 1992. While GIs and TSGs have a similar intervention logic and pursue many common objectives, they differ in several ways. PDOs and PGIs relate to the name of a product of which the quality or reputation is linked to its geographical origin, but TSGs safeguard traditional aspects of products and recipes, with (in principle) no link to a specific geographical area. PDO/PGIs enjoy a higher level of protection than TSGs, as they are recognised as Intellectual Property Rights (conferring IPR), while TSGs are not. The two schemes largely overlap in terms of products scope, although PDOs/PGIs have a wider product scope for agricultural products, and the ‘prepared meals’ category is only available for TSGs. The administrative procedures for registering TSGs are almost identical to those for PDOs/PGIs. While 1441 GIs had been registered in the agri-food sector as of January 2021, only 64 TSGs had been registered. Evidence suggests that TSGs are less attractive, because they do not provide an Intellectual Property Right protection, the consumer recognition is low, and can be used by stakeholders from other geographical areas. Protecting a name without linking it to a geographical territory seems to offer limited added value for producers. 5.4.2.Coherence between GIs and EU trade marks The EU trade marks refer to signs used in trade to signal commercial origin. They can consist of any signs, in particular words (including personal names), but also designs, letters, numerals, colours, sounds and the shape of goods and packaging. The signs that make up a trade mark must allow the consumer to distinguish the operator’s goods and services from others’. An EU trade mark gives its owner an exclusive right in all Member States. The relevant legal framework on EU trade marks is Regulation (EC) No 2017/1001 on the European Union trade mark. The analysis shows that GIs and EU trade marks are both registered Intellectual Property Rights intended to regulate the use of names, grant protection and specific rights. However, the two Intellectual Property Rights have different functions. Trade marks give their owner an exclusive right, while GIs confer a collective right on all producers in the geographical territory who are willing to produce according to the defined product specification. The level of protection offered by the EU legislation on GIs is assessed in the context of the evaluation support study on GI/TSG to be compatible with and comparable to the one offered by the EU legislation on trade marks. Similarly, the level of protection granted for the two Intellectual Property Rights is assessed to be consistent with the nature of their systems and aligned with the respective objectives. The Court of Justice of the European Union has recently clarified the relationship between GIs and collective marks. 5.4.3.Coherence between GIs/TSGs and national/regional schemes Some Member States and regions have developed schemes to provide their operators with specific guarantees. EU schemes and national/regional schemes (under specific conditions) are eligible for support from the European Agricultural Fund for Rural Development (EAFRD), as defined in Article 16 of Regulation (EU) No 1305/2013. This covers: (i) quality schemes as defined in Article 16 of Regulation (EU) No 1305/2013 and (ii) voluntary agricultural product certification schemes recognised by the Member State as meeting the EU best practice guidelines for the operation of voluntary certification schemes relating to agricultural products and foodstuffs. The following analysis is largely based on the assessment of 19 national/regional schemes: Member State List of schemes CZ Klasa Regional Food Product DE Regionalfenster (Regional Window) Qualität aus deutschen Landen QS ES Tierra de Sabor Alimentos del paraíso natural Campo y Alma FR Label Rouge Certification conformité produit Produits agricoles de France Haute Valeur Environnementale IT Prodotti di Qualità Puglia Qualità Alto Adige / quality Südtirol 5Erre Member State List of schemes HU Quality Food from Hungary (QFH) / Kiváló Magyar Élelmiszer Hagyományok-Ízek-Régiók (HÍR) / Traditions-Tastes-Regions (TFR) NL Beter Leven Keurmerk (Better Life label) Source: Evaluation support study on GI/TSG There are many national/regional quality schemes in the EU, with many different features and requirements. Some enjoy greater consumer awareness than the GI and TSG schemes. National/regional schemes may share common objectives with EU GIs/TSGs, e.g. promoting traditional products, improving traceability, etc. They may complement the latter as regards environmental and animal welfare issues. Some synergies may also be found where they represent a first step to enter EU quality schemes. However, the plethora of quality labels on the market, with objectives that may not be fully clear for all consumers, and may be confusing for some consumers.

In the public consultation, a majority (222) of the 230 respondents were positive about the coherence of EU quality schemes with official national/regional schemes. However, fewer than 50% agreed or tended to agree that they were coherent with private labels and certification schemes, while a quarter felt that there was inconsistency. 5.4.4.Coherence between GIs/TSGs and other CAP instruments and measures This section examines the extent to which the GI and TSG schemes contribute to and complement the following other CAP instruments and measures (i) direct payments, (ii) Common Market Organisation (CMO), (iii) rural development policy (iv) promotion policy and (v) organic policy. Direct payments The main objective of EU direct payments is to contribute to farmers’ income, thereby ensuring a fair standard of living for the agricultural community in line with Article 39 TFEU. By supporting farmers’ income, they also help to maintain agricultural activity in all parts of the EU. Direct payments and quality policy are coherent as they share similar objectives. Through their objectives (as detailed in the legislation), the GI and TSG schemes complement direct payments in ensuring a fair income for primary producers. Common Market Organisation (CMO) The Common Market Organisation (CMO) and quality policy also share similar objectives. The CAP aims to ensure that farmers receive a fair return from the market and to improve their position in the food value chain. It does so first and foremost through the CMO. The CMO Regulation contains general rules on the recognition of and support for producer organisations, associations and interbranch organisations, and to optional reserved terms and marketing standards. It also contains specific provisions allowing for supply management by producers of PDO/PGI cheese and ham. By facilitating the recognition of the quality of products on the market (through marketing standards and optional reserved terms) and allowing for a certain degree of concentration of supply, it strengthens farmers’ bargaining power vis-à-vis processors. In sum, CMO and EU quality policy are coherent as they share similar objectives. GIs contribute to and complement the impact of the CMO Regulation in strengthening the primary producers’ bargaining power in the value chain and increasing their returns from the market. Rural Development measures The main objective of EU rural development policy is to contribute to vibrant rural areas, by supporting (among other things) farm viability, the competitiveness of all types of agriculture in all regions, and the organisation of the food chain. Rural areas account for half of the EU’s territory and are home to 20% of its population. Rural development programmes contain a measure specifically designed to support quality schemes , by providing support for farmers and groups of farmers for joining quality schemes, established at national/regional or EU level (including for GIs and TSGs), and support for information activities on quality products under such schemes. Rural Development policy and quality policy are coherent as they share similar objectives. Through their objectives (as detailed in the legislation), the GI and TSG schemes contribute to and complement rural development policy in stimulating vibrant rural areas in the EU by contributing to viable farms, employment and the diversification of income streams. Promotion policy The objectives of the EU’s promotion policy for agricultural and food product are, as set out in Regulation (EU) No 1144/2014 , to boost the competitiveness and consumption of EU products in the EU and elsewhere; to raise consumer awareness of the merits of EU agricultural products and production methods, and to raise awareness and recognition of EU quality and organic farming schemes. Recital 4 of Regulation (EU) No 1144/2014 makes a first link between the promotion policy and EU quality schemes by stating that the measures taken under former should aim to communicate the authenticity of EU products, thus contributing significantly to raising awareness of the latter in the EU and elsewhere. The recent evaluation support study of EU agriculture promotion policy reveals that, overall, the policy is effective in influencing awareness and recognition of EU quality schemes, thus ensuring coherence between the two policy areas. Promotion policy is not geared to products’ origin, and promotion measures should not encourage consumption of a product based solely on its origin. Nevertheless, in the case of pro