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The role of geographical labelling in inserting extensive cattle systems into beef marketing channels. Evidence from three Spanish case studies

Author

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  • Almudena Gómez Ramos

    (Universidad de Valladolid, Departamento de Ingeniería Agraria, Campus de Palencia, Avenida de Madrid 44, 34004 Palencia España)

  • Isabel Bardají Azcaráte

    (ETSIA, Departamento de Economía y Ciencias Sociales Agrarias, Universidad Politécnica de Madrid, Avenida Complutense s/n, 28040 Madrid)

  • Ignacio Atance Muñiz

    (Ministerio de Agricultura, Subdirreción General de Productos Hortofrutícolas, C/ Alfonso XII 62, 28071 Madrid)

Abstract

The beef cattle sector is adapting to increasing demand-side requirements. Customers are looking for a differentiated product of constant quality in a market that is beginning to be dominated by major distribution companies. In this background, mechanisms to differentiate production are being implemented to co-ordinate both production and marketing processes and integrate livestock farmers into the commercial system. Extensive cattle systems carry an important weight in Spain because of their social and environmental values. However, their structure and level of profitability are obstacles to their adaptation to new market trends. This situation calls for instruments that are able to bring the farmer into this adaptation process and to add value to and differentiate products. These instruments can be promoted by institutions or by the private sector through quality labels based on the product’s geographical origin. This paper aims to characterise the process of adaptation of Spanish extensive cattle systems through three case studies representing three kinds of extensive farming system located in the country’s northern, central and southern mountain ranges. A logit model based on a survey of farmers was developed to identify which variables have a greater influence on the decision to participate in quality labels based on geographical origin. The study concludes that the three mechanisms, which are based on a brand linked to their geographical origin, present important differences. Some factors as the institutional or regional context explains these differences and determine the degree of acceptance of each one of these mechanisms between the livestock farmers.

Suggested Citation

  • Almudena Gómez Ramos & Isabel Bardají Azcaráte & Ignacio Atance Muñiz, 2006. "The role of geographical labelling in inserting extensive cattle systems into beef marketing channels. Evidence from three Spanish case studies," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 78, pages 81-105.
    • Handle: RePEc:rae:jouces:v:78:y:2006:p:81-105
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    References listed on IDEAS

    as
    1. Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
    2. Jutta Roosen & Jayson L. Lusk & John A. Fox, 2003. "Consumer demand for and attitudes toward alternative beef labeling strategies in France, Germany, and the UK," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 77-90.
    3. Imai, Kosuke & van Dyk, David A., 2005. "A Bayesian analysis of the multinomial probit model using marginal data augmentation," Journal of Econometrics, Elsevier, vol. 124(2), pages 311-334, February.
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