Producer survey on Traditions Tastes and Regions (TTR)

Trademark users

Gyöngyi Kürthy Research Institute for Agricultural Economics (AKI)

Food Chain Research Department

Aims of the survey Creating long- and short term programs in order to develop the

system (e.g. e-commerce)

Provide better assistance, consultancy for TTR users

Supporting TTR users to join the EU’s protected designation of origin (PDO) , protected geographical indication (PGI) or traditional speciality guaranteed (TSG) systems

Improve the consumer’s information about TTR Program

Producer research of theTTR Trademark users

According to the TTR contract the user of TTR is bound to give over data for the TTR’s owner, the Ministry of Agriculture

Online survey once a year, fifth time collaboration with AKI

2015. II. and 2016. I. half-years

Especially E-commerce and situation of Geographical Indications

From 66 questionnaries (17 groups) 44 valid answers

78% response rate!

The share of TTR products in total sales

The share in total sales mostly 25 % and below

47 % of producers: the share of TTR trademark products is 25 % or more in total sales

5 producers: 100 %

13 %

40 %

18 %

8 %

8 %

13 %

0%

0-25%

25-50%

50-75 %

75-100 %

100%

Changes in sales volume

32 % of producers: sales volume increased since last year

46 % of producers: sales volume increased since use of the TTR trademark

46

32

8

18

46

50

0% 20% 40% 60% 80% 100%

Since use of TTRtrademark

Since last year

Grown Reduced Unchanged

Distribution channels and the share of sales of TTR trademarks Still dominant: Direct sales,

Catering, Convenience store

Presence in Hungarian-owned chains (eg. Coop, CBA, Reál)

High share of sales: Direct sales, Wholesaler, Super/hypermarket chains (eg. Tesco, Auchan, Spar), Manufacturing

E-commerce low usage rates but higher share of sales

4

9

40

12

22

38

11

18

42

18

25

21

21

3

4

5

5

5

7

8

8

9

9

11

19

20

27

0 5 10 15 20 25 30 35 40 45

Supply groups

Discounts

Manufacturing

E-commerce

Other

Super / hypermarket chains

Export

Local farmers market

Wholesaler

Institutional buyer

Hungarian-owned chains

Independent convenience store

Catering

Direct sales

The number of those who are present in a distribution channelwith their products (pieces)The average share of a specific distribution channel of sales (%)

Producers’s assesment of the expectations and the experiences of TTR Program

Preserve traditional production methods, increase marketing value and raise the awarness are the most important objectives for TTR trademark users.

Least expected the realisation of the trademark’s value in higher sales prices

In all cases the excpectations exceeded the experiences

2,1

2,7

2,1

2,4

2,9

3,2

3,4

4,0

2,7

3,0

3,1

3,2

3,6

3,8

4,2

4,5

Higher sales prices

Other

Join to EU protection of origin

Exploiting funding opportunities

Increase profits

Increase sales

Marketing value, raisingawareness

Preserve traditional productionmethods

Expected Experienced

How do the producers promote the TTR trademark?

77 % of respondents promote the TTR trademark

The most often used tools: trademark’s logo on banners, flags in stores or events, and their own websites

The most effective tools: in events’location, in brochures and packaging and advertising on social sites

3,4

4,2

2,7

4,2

4,2

4,0

4,3

4,0

7

13

14

25

25

25

27

28

0 5 10 15 20 25 30

Other

Social sites

Group website

Product label, packaging

Advertising, brochures

Own website

Events

Distribution stores

Number of responses

Average assesment of the impact (scale 1-5)

Terra Madre

OMÉK 2016

Helyi Termék Éve

Falunapok, Gazdanapok

Alsóvárosi Paprikanap

Tiszai Halléfőző Verseny

Bábolna Sonka Fesztivál

BaGaTech Nemzetközi Szakkiállítás

Bajai Halászléfőző Fesztivál

Csabai Kolbászfesztivál

Debreceni Mihály Napi nagyvásár

Baskói Gyümölcs Ünnep

Kincses Baranya Fesztivál

Magyar Nemezeti Gála

Mangalica Fesztivál

Őrségi Vásár

Városnapi Vigasságok

Cseresznyefesztivál

Hétrétország

Megyei Érték Nap

Népek-Ízek Forgataga

Hungarikum Fesztivál

Ócsai Új kenyér Ünnep

Sajtmustra

Zebegényi Gőzgombóc Fesztivál

Bélesfesztivál

Hírös Hét Fesztivál

Mesés Gyermeknap

Kalászi Vigazságok

Lecsófesztivál

Gyömrői Városnap

Nemzetközi Tiszai Halfesztivál

Komló Napja

Szeptemberi Kóstoló

Kolbászfesztivál

Toros- és Pálinkafesztivál

Húsvéti Sonkaszegő Fesztivál

Sirha Budapest

Barackpálinka és Borfesztivál

Cseresznyefesztivál

Participation on festivals and events

High participation on festivals and events

109 events during the reference period

Partially supported by Ministry and by Municipalities

E-commerce with TTR trademark’s products

The e-commerce is in its early stage (5 producers)

Typically high value-added products (syrup, oil, beverages) have already used this sales method

Usually use their own website

69 %: no plans to sell TTR products through the Internet in the future

14%

14%

3% 69%

Future plans for e-commerce

TTR trademark's webshop

Own webshop

Group's webshop

Not planned

Answers against e-commerce The selling process is difficult

Lack of capacity

Lack of skills

Complicated sales process

E-commerce is not typical and suitable for traditional products

Dilivery cost is too high

Not all consumers have access to e-commerce

The lack of personal contact with the customers

What do producers know about the PDO/PGI/TSG systems?

41%

68%

70%

59%

30%

28%

TSG

PDO

PGI

Known Not known Not answered

More than two-thirds are familiar with the PDO/PGI system

The TSG familiarity is a lot lower (41 % )

Only 30 % heard about „Tepertős pogácsa” which is the EU's Traditional Speciality Guaranteed.

What do the producers know about the Hungarian PDO/PGI/TSG products?

Knowledge of the products are much higher than knowledge of producers

The TTR producers recognized the same PDO / PGI products as the consumers

Prestigious firms’ widely distributed food products are well-known, like Csabai kolbász, Szegedi szalámi

12

14

20

23

26

26

31

26

22

29

24

21

23

2

1

1

1

2

1

1

1

1

4

4

3

2

5

8

4

12

16

11

16

18

17

0 5 10 15 20 25 30 35 40 45

Budapesti téliszalámiSzőregi rózsatő

Alföldi kamillavirágzatHajdúsági torma

Gönci kajszibarackSzentesi paprika

Magyar szürkemarha húsMakói vöröshagyma

Gyulai kolbászKalocsai fűszerpaprikaSzegedi fűszerpaprika

Szegedi téliszalámiCsabai kolbász

Known the product Known the producer Known both of them

Are their products suitable for the EU’s protection?

68 %

75 %

75 %

82 %

91 %

95 %

95 %

9

8

7

6

2

2

1

5

3

4

2

2

1

The quality or the characteristics of the product are obviouslyconnected to the geographical environment

All phases of the production are on a defined geographical area.

At least one phase of the production is on a definedgeographical area.

The product's quality is connected to a geographical area

The product originates from a specific place, region or country

The product has existed since a generation period (at least 30years)

The composition or the production method of the product isproven to be traditional.

Typical Not typical Not answered

Plans to apply for EU protection

TTR products Products with EU protection Plans to apply for EU

protection

Gyulai kolbász √

Magyar szürkemarhahús √

Pannonhalmi törkölypálinka √

Szegedi paprika /Szegedi fűszerpaprika-őrlemény √

Baráthegyi zsíros félkemény kecskesajt √

Bodzavirág szörp √

Cigánka √

Hegykői petrezselyemgyökér √

Fertőd vidéki sárgarépa √

Karcagi birkapörkölt √

Őrségi tökmagolaj √

Szomolyai rövidszárú fekete cseresznye √

Tokaji furmint borecet √

How much are they satisfied with the functioning of the trademark owner?

3,4

3,8

3,8

3,9

4,1

4,2

4,2

4,2

0 1 2 3 4 5

Publications, promotional materials

Information on upcoming exhibitions, tenders

Opportunities for introduction in various forums

Free or discounted exhibitions

Professional assistance

Regular newsletter

Operation of the social site

Social marketing programs

What else would the producers expect from trademark owner?

40%

31%

19% 10%

Regional trade forumsWorkshopsPersonal consultationSeminars

More than 70 % requires the regional professional forums and workshops

High demand for personal consultations

Request for information regarding the PDO / PGI

Others mentioned: appearances on TV to promote TTR, more marketing to raise the attention of consumers

Further activities to develop the TTR Program

Supporting the development of TTR users EU and VP tenders for new members and for promotion

Assistance to join EU’s Protected Geographical Indication System More than 40 new candidates on the list

Protection of origin programs by the Ministry Eredetvédelmi Fórumsorozat”, 2017 in 10 cities for producers

At the same time the promotion of TTR program, and raising consumer awarness

In the future Research Institute of Agricultural Economics plays also a role in

develope the TTR Program

Food Chain Research Department elelmiszerlanc-kutatasi.osztaly@aki.gov.hu

Jankuné Dr. Kürthy Gyöngyi Dr. Dudás Gyula Darvasné Ördög Edit Székelyhidi Katalin

Radóczné Kocsis Terézia

Begéné Dr. Olasz Gyöngyi Bene Andrea

Wagner Hartmut

Thank you for your attention