Do 'Protected Geographical Indications' (PGI)-certified farms perform better? The case of beef farms in Spain
2011
Iraizoz, Belen | Bardají, Isabel | Rapún Gárate, Manuel
European rural development policy is gaining in importance through one of its key instruments, the Protected Geographical Indications (PGI) system, which is designed to improve quality standards. Previous research has shown that PGI-certified beef farms tend to be more extensively managed operations that are better adapted to mountainous areas. This paper describes a comparative study of two production systems, one with PGI certification and one without, focusing on a number of economic variables. The results show a positive association between PGI production and profitability. In efficiency terms, non-certified farms show better pure technical efficiency scores, while PGI-certified holdings score higher on scale efficiency.
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