Geographical indications and upgrading of small-scale producers in global agro-food chains: A case study of the Makó Onion Protected Designation of Origin

Abstract

In the context of the marginalising effects of agro-food chain dynamics on upstream suppliers, this paper examines the extent to which geographical indications may improve the positioning of small-scale producers. Making an original distinction between established and nascent geographical indication systems, the paper undertakes a case study of the latter type (the Makó Onion Protected Designation of Origin, Hungary), hitherto overlooked in the literature. The study adopts a global value chain perspective to analyse three means by which geographical indications may facilitate upgrading (capturing higher margins, stimulating collective action and enabling diversification), finding that none have been delivered via the Makó Onion Protected Designation of Origin. The paper examines the reasons for this, identifying the role played by the political and institutional context. Recommendations are made for improving the upgrading potential of geographical indications when applied to nascent systems.