Caribbean Export OUTLOOK 2016 - 2017

Clearing the Hurdles

Protecting IP and managing intellectual property rights (IPRs) is critical to branding and establishing market presence and, if managed correctly, can be used by regional actors within the agricultural sector to create value and a global competitive advantage for their products through its exploitation.

Regional agricultural producers are cognisant that to achieve a global competitive advantage for their products, theymust seek to create brands which capitalise on the unique characteristics of regional agricultural food products, which have a compelling local story to tell, or which have prestige, quality attributes, recognition and/or reputation linked to a specific place of origin. Such products, referred to as Origin-Linked Products (OLPs), often command a premium price that is attached to the attributes derived not only from their place of origin, but also due to local traditional know-how. This approach signals a significant paradigm shift in the business models implemented by the agri- food sector in the past, and requires a strategy that demands a new focus on using the tools of IP to build product recognition, reputation and enhanced consumer perception of the unique quality of regional food products. As part of this evolving business model, regional producers are starting to integrate innovative strategies, which give them a competitive advantage and provide a mechanism to obtain a price premium for their products. The commodity approach Within the regional context, the agri-food sector is characterisedbytheproductionofcommoditiesthat have a global reputation for high quality. Examples include coffee from the Jamaica Blue Mountains andfineorflavouredcocoaproducedfromcountries such as Dominica, the Dominican Republic, Grenada, Jamaica, Saint Lucia, and Trinidad and

Tobago – all of which have been classified by the International CocoaAgreement, 2010 as countries thatproducepartiallyorexclusivelyfineorflavoured cocoa. Further, other agricultural products have gainedaninternationalreputationbecauseofsome unique flavour or reputation for production, based ontraditionalpractices.Anexcellentexamplewould beregionalrumswhichhavebeenproducedforover 300 years based on traditions, especially related to processing and blending. In order to reap greater economic gains within the agricultural sector, regional value-chain actors cannot continue with the “business as usual” approach to production and marketing of their products. Product differentiation, greater involvement along the value-chain, as well as a reasoned and effective approach to developing IP and branding systems must become integral to agricultural production system. Using the IP system to effectively market agricultural products In broad terms, IP is the application of human intellect to create something original. It can exist in many forms; for example, a logo, design, invention or literary or artistic works. Regional agricultural actors have a suite of IP tools through which they can market and promote their products. These include trademarks, which can be used by an enterprise to distinguish its goods and services offered from that of another competing business in the same product category; service marks, which are similar to a trademark but are used

in commerce to distinguish and differentiate a business’ services from that of others in the market; collective marks, which are owned by a group such as a commodity association and are used by members of the group; certification marks, which are usually given for compliance with defined standards, but are not confined to any membership; and GIs, which are signs used on goods, which link the unique characteristics of the good to its geographical origin. Protecting IP and managing intellectual property rights (IPRs) is critical to branding and establishing market presence and, if managed correctly, can be usedbyregionalactorswithintheagriculturalsector to create value and a global competitive advantage for their products through its exploitation. IP and branding should be viewed as fundamental strategies, which canbe used to enhance the success and competitiveness of OLPs in the market and should be considered as essential tools to augment the income of those involved in the production, processing and marketing of such products. One examplewhere this strategy of creating high-value brands through the use of IP tools and product differentiationhas been successfully implemented in the region is with regard to marketing sugar produced inBarbados. The strategymixes volume retail, manufacturingwith food services and retail through premium stores to build brand equity and obtain higher than average market prices for the brands Plantation Reserve and Plantation Traditional . Each branded product is marketed and promoted to a different market segment and at a different price point.

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