Supporting the development of the geographical indication system in Ukraine

The project is financed by the European Union

“Support for the development of the geographical indications system in Ukraine”

The project is implemented by the companies DMI, GFA and ADECIA

The EU project “Supporting the development of the system of geographical indications in Ukraine” helps Ukraine to create an effective system of geographical indications in accordance with the Association Agreement between Ukraine and the European Union. The project cooperates with government institutions, manufacturers, business associations, consumer associations, tour operators, non-governmental public organizations and all other interested parties with the desire to improve the system of geographical indications in Ukraine.

The project team is working on:

•           improvement of the legislation of Ukraine, which regulates the field of geographical indications, and its coordination with EU norms;
•           improving the qualifications of civil servants working with geographical indications;
•           providing advice on the rebranding of goods that use EU geographical names;
•           facilitating the registration of Ukrainian geographical indications (in particular, wine, spirits, cheese and honey);
•           the development of wine/gastronomic tourism in regions where geographical indications are registered;

Key partners of the project:

The Ministry of Economic Development and Trade of Ukraine (MERT), which is responsible for the implementation of state policy in the field of intellectual property (IP) protection, as well as

The Ministry of Agrarian Policy and Food of Ukraine (MAPP), which is responsible for the development of rural areas and the quality control system of agricultural

By signing the Association Agreement with the EU, Ukraine and the EU countries assumed a number of obligations, including in the field of protection of geographical indications originating from the territories of the Parties to the Agreement. The entire Subsection 3 (Articles 201-211) is devoted to the topic of geographical indications in the text of the Association Agreement with the EU.

 What is GH?

Geographical indications are one of the types of voluntary protection of goods against unfair competition and an effective tool for the collective promotion of goods in the markets. The mark of geographical indication is applied to the product and certifies its high quality, a long tradition of production and a special connection with the territory where it is made. These can be soil and climatic features that distinguish a certain geographical place, traditional production methods that are passed down from generation to generation and provide unique properties of the product. The product can be protected by such designation at the state and international level, which strengthens the competitiveness of the product in the markets due to its uniqueness.

A geographical indication can protect most food and beverages intended for human consumption: meat, dairy products, fish, honey, fruits, vegetables, beverages made using plant extracts, bread, pasta, pastries, cakes, cookies, candy, chocolate, beer, wine, spirits, etc.

Geographical indications are actively used in EU member states to increase the level of recognition of producers in order to attract increased attention of consumers to the corresponding food products.

What is the interest of consumers?

Consumers, buying a product from GH, receive guaranteed product quality that has specific regional characteristics. The geographical indication confirms the following advantages of the corresponding product:

a)  quality 
The guarantee of the highest quality of products from GH is provided by three levels of control: 
– the manufacturer himself guarantees the quality of his products through compliance with the specification;
– quality control by the producers’ association;
– quality control by an external independent certification body.

b)  protection  against falsification of 
the GH informs about the place of origin of the product: where it was invented and is manufactured to this day according to traditional technology. All registered GH products are entered into national and pan-European registers, this information is public, and consumers can independently check it.

c)  naturalness and authenticity
Products from GZ are made from natural ingredients without the addition of GMOs and synthetic impurities. Often products with GH are also organic products.

d)  connection with cultural heritage 
Products from GH are not just food, they are part of the culinary heritage of one or another people. For consumers, and especially tourists, this is an opportunity to taste culture. Often products with GH are a kind of tasty gastronomic souvenir. In addition, GH products are a product for gourmets.

What is the interest of manufacturers?

Manufacturers of products with the GH brand can more effectively protect their rights and increase the sales market, because registration of the GH for a product gives manufacturers the following advantages:

a)  confirms the high quality and safety of their products, their uniqueness and traditionality.

Products with protected HZ belong to the premium class segment. Thus, thanks to GZ, manufacturers can differentiate their product among similar ones on the market and win the trust of consumers.

b)  forms a collective intellectual property, protecting the product from counterfeiting and allowing an association of producers to share the benefits of this value-added product .

This right is protected by international agreements, European and Ukrainian legislation. The management of this intellectual property right belongs to the association of manufacturers of the corresponding product. In other words, no manufacturer located outside the geographic area identified in the product specification may use the registered product name. Moreover, such manufacturers are prohibited from indicating on the packaging the inscriptions “in the style of”, “type”, “by method”, “as produced in”, “imitation”, “flavored and scented”, “similar to” or “similar to” regarding the name of the registered business enterprise.

c)  allows preserving traditional production technology.

After all, it is the traditional technology that forms the basis of the specification, and all manufacturers who want to use GH are obliged to comply with it.

d)  helps increase sales volumes and enter new markets outside the production area .

Thanks to quality control and product certification, the trust of consumers who are ready to pay more for safe, high-quality, natural and traditional products is growing.

All these factors ultimately motivate consumers to buy products from GH and pay more for them than for similar products of industrial production, and producers – to earn more.

e)  attracts tourists.

Products from GH are an element of the culinary heritage of the people and a kind of tasty souvenir. That is why it is interesting for tourists to visit the places of production of these special products and taste the culture of local residents.

What is the interest of rural areas (territorial communities)?

The registration of GH not only opens up new trade opportunities for producers, but also helps preserve local traditions, increases the tourist attractiveness of rural areas and contributes to their development.  

On the one hand, the production of products from GH helps preserve traditional fishing as an economic expression of the identity of a certain territory. That is, by contributing to the production of authentic quality products, GHs at the same time contribute to the preservation of the authenticity of production processes and the employment of the local population.

At the same time, the success of products from GH contributes to the development of related fields: food and wine tourism, production of souvenir products, restaurant and hotel business, and together with them, again, the growth of employment of the local population and the increase of profits of both local businesses and local budgets.

Prospects of Ukrainian GZs

Geographical indications have helped such products as champagne, cognac, Roquefort cheese, Parmesan and many others gain world fame. Ukraine is a powerful agricultural country, a producer of food products, so there are good prospects for the registration of domestic GHs.

On August 31, 2018, the first association in Ukraine was registered, the purpose of which is to promote and protect the domestic product with a geographical indication – the Association of Manufacturers of Traditional Carpathian High Mountain Cheeses. The association decided to register “Hutsul sheep brindzyu” as the first geographical indication for cheese in Ukraine.

On February 19, 2019, the second Ukrainian association for the management of geographical indications was registered – the Association of Carpathian Vatags – for the purpose of managing the geographical indication “Hutsul cow cheese”. 

On February 12, 2019, the founding conference of the Association of Kherson Watermelon Producers, which was created for the purpose of managing the geographical indication “Kherson Watermelon”, was held in Kherson.

On February 14, 2019, the founding conference of the first Ukrainian association of wine producers, which will take care of the development of the wine-growing zone, registration and control of geographical indications for wine – the Association of Grape Growers and Winemakers “Prydanuisk Bessarabia” – was held in Krynychny, Odesa region.

On February 27, 2019, the founding meeting of the Association of Melitopol Cherry Producers, created for the purpose of managing the geographical indication “Melitopol Cherry”, was held.

The interest of manufacturers in registration of trademarks for their products is growing, so the list of associations – and subsequently registered trademarks – will constantly grow.