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Economic analysis of certification systems for organic food and farming

Objective

With the ongoing growth of the organic sector and the spread of organic production across the EU, the field of organic certification has become a maze of competing labels and logos, involving different private and public standards, in addition to European law. This diversity reflects the specific conditions for organic operators in countries or regions but can also lead to confusion for both producers and consumers and may create a variety of costs. Reg. (EC) 834/2007 intends a review of the revised regulation by the year 2011. It is imperative to conduct a comprehensive economic analysis of the variety of existing certification systems and their impact on the internal market for organic goods. This project proposes to combine the experience and knowledge of both researchers and SMEs to fulfil the following objectives: analyse the implementation of organic certification systems and estimate all relevant expenditures or transaction costs for different certification systems along the organic food supply chain in various regions of the EU, including a candidate country and Switzerland. It will involve stakeholders. Access to the necessary data has already been agreed with the involved partners or appropriate agencies for all seven study countries. In addition to costs, benefits of certification will be analysed, using data on consumers' recognition, image and willingness to pay for different organic logos and trademarks, with their underlying production standards and certification procedures. The project will consider consumer and certification issues equally. Economic models will be applied to analyse the determinants of costs and benefits, as well as provide recommendations for the development of risk-based certification systems. Finally, recommendations will be drawn for the EU Commission, national competent authorities and private actors in organic food and farming on how to increase effectiveness and efficiency of organic certification.
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Coordinator

UNIVERSITAET HOHENHEIM

Address

Schloss Hohenheim
70599 Stuttgart

Germany

Activity type

Higher or Secondary Education Establishments

EU Contribution

€ 412 242

Administrative Contact

Hans-Peter Liebig (Prof.)

Participants (10)

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FORSCHUNGSINSTITUT FUR BIOLOGISCHEN LANDBAU STIFTUNG

Switzerland

EU Contribution

€ 412 312

UNIVERSITA POLITECNICA DELLE MARCHE

Italy

EU Contribution

€ 270 510

UNIVERSITAET KASSEL

Germany

EU Contribution

€ 288 336

INSTITUT FUER MARKTOEKOLOGIE

Switzerland

EU Contribution

€ 242 805

EGE UNIVERSITY

Turkey

EU Contribution

€ 211 290

AARHUS UNIVERSITET

Denmark

EU Contribution

€ 369 020

CESKA ZEMEDELSKA UNIVERZITA V PRAZE

Czechia

EU Contribution

€ 145 376

ISTITUTO PER LA CERTIFICAZIONE ETICA ED AMBIENTALE

Italy

EU Contribution

€ 134 008

ABERYSTWYTH UNIVERSITY

United Kingdom

EU Contribution

€ 49 950,94

PROGRESSIVE FARMING TRUST LTD LBG

United Kingdom

EU Contribution

€ 197 335,06

Project information

Grant agreement ID: 207727

Status

Closed project

  • Start date

    1 September 2008

  • End date

    30 November 2011

Funded under:

FP7-KBBE

  • Overall budget:

    € 3 481 895,35

  • EU contribution

    € 2 733 185

Coordinated by:

UNIVERSITAET HOHENHEIM

Germany

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