Geographical Indications as an Added Value Strategy for São Tomé and Príncipe Organic Cocoa

Abstract

The geographical indications (GI henceforth) are commonly considered by management and researcher communities as a strategy for increasing added value, through product differentiation and subsequent improved pricing. Products with GI are considered price premium over similar ones that lack such indication. The GI establish intellectual property rights for particular products, which qualities are specifically linked to their area of production. The assumption is that markets are willing to pay higher prices for products of certified origin, because consumers attach specific positive and distinctive features to these products from a particular geographical area. Their attributes are particularly related to special organoleptic qualities, which derive from singular comparative advantages (terrain, climatic conditions or both) and typical production technologies, which confer a traditional and genuine nature.