Geographical Indication, Brazil

Case study Identity Card

Long title: Adding value to produce from family farms in Brazil: investigating geographic indications in Santa Catarina State
Geographical coverage of the case: Santa Catarina State, Brazil
Case study team: Claire Cerdan (Cirad, Innovation), Aparecido Lima da Silva (UFSC), Hamilton Vieira (EPAGRI), Etienne Hainzelin (Cirad, DG), Agathe Devaux-Spatarakis (Cirad, Innovation/DG)
Years covered: 2004- 2014

Case study description

The innovation under study: In Brazil, the “Vales da Uva Goethe” geographical indication is boosting wine production from Santa Catarina State

In the 1990s, smallholder farmers in Santa Catarina State in southern Brazil sought to promote the traditional crops grown in their terroir, emphasising the quality and originality of their products. Goethe wines are one of these, and were protected by a geographical indication in 2012. Researchers at CIRAD, who supported the producers throughout the process, have analysed the impact of their involvement, as well as its economic and professional benefits for producers.

Santa Catarina State is characterised by its dynamic family farming sector, which was a driving force in the development of the agro-industrial centres in the 1960s. But from the 1990s onwards, aware of the limitations of this dominant model, actors in the rural world sought other modes of development and turned to the promotion of local products.

Scientific cooperation programmes were set up with France. For example, CIRAD took part, along with EPAGRI, the Santa Catarina agricultural research institute, and the Federal University of Santa Catarina, in the design of strategies to differentiate and promote local products. In the Urussanga region, it supported producers in the establishment of the geographical indication for “Vales da Uva Goethe”, a wine typical of the region.

Reviving a century-old vineyard

Despite being produced since the early 20th century, in the early 2000s Goethe wines were losing ground and this lack of competitiveness resulted in vines being uprooted. The producers are attached to this grape variety for cultural and historical reasons, and were aware that reviving this vineyard would require recognition of its originality, but also an improvement in the quality of wines produced and the promotion of their unique flavours.

Thus, in 2004, they decided to launch a process for recognition of the geographical indication for their wine. The context was favourable. In Brazil, there is a political and institutional dynamic to promote local resources and authentic products, in line with the law on geographical indications enacted in 1996.

Supporting producers

PROGOETHE, the association of Goethe grape and wine producers, was created in 2005. It includes seven winery owners, twelve grape growers and various inns, restaurants and shops from the region. Early on, it applied for funding from government agencies and requested assistance from researchers and agricultural technical services.

In order to prepare the application for registration of the geographical indication, to support producers in this process and to improve the quality of the wines, three projects were launched between 2006 and 2008. They associated SEBRAE, the support service for small enterprises, regional institutions and several research organisations: EPAGRI, the Federal University and CIRAD.

Establishing data, suggesting improvements and gathering evidence

The purpose of research here was to provide factual data: characterising the agroclimatic and soil conditions for production, defining actor profiles, reconstructing the history of the wine and the region, and conducting experiments to propose improvements in grape growing and winemaking. This data facilitated decision-making for the actors involved and enabled them to set rules and production standards. It is also research that provided scientific evidence of the link to origin, whether for the physical terroir, the crop or the knowledge concerned.

For the producers, these projects were the opportunity to test new techniques in viticulture and winemaking, but also to consult with technicians and other producers having undertaken a process to promote their products. Over time, the quality of the wines has improved, new sales outlets have been developed and the image of the traditional products has evolved.

The geographical indication, a guarantee for vineyard products

The registration application was filed in 2009. The geographical indication “Vales da Uva Goethe” was recognised by the government of Santa Catarina State in 2010 and by the Brazilian institute of industrial property in 2012.

As soon as the application was filed, the researchers gradually withdrew and a new phase began, this time concerning the promotion of the geographical indication. Financed by the Ministry of Agriculture and the Urussanga municipal council, its aim was to support producers in the launch of their new products.

Since 2014, the producers have been selling their wines under the Vales da Uva Goethe geographical indication. These products now need to be consolidated on existing markets and new lucrative opportunities need to be developed.

An in-depth study of the impact of research

In 2015, researchers at CIRAD analysed the impact of their involvement with grape and wine producers in the region, and the society as a whole. With the actors involved, they established the account of this innovation, analysed its impact pathway and clearly identified the support role played by research.

In order to quantify the impact, they first used existing data: national and federal statistics, economic data from EPAGRI, and information found on the websites of professional associations.

They then supplemented this data by conducting surveys among producers, owners of wineries and retailers in the region: in 2015, 43 people were interviewed. At the same time, around 50 interviews were conducted with public actors in the region and people involved in the development of geographical indications in Brazil.

Higher incomes

First observation: an improvement in Goethe wine producers’ incomes and the professionalisation of producers are the two most important impacts.

The improvement in incomes, first of all: in 2005, Goethe wines sold at between 4.5 and 12 reals per bottle. In 2015, they sold at 7 reals for entry-level products, and up to 35 reals for sparkling wines. It is the better quality wines, such as sparkling wines, that have seen the highest increase, at almost 30% between 2005 and 2015.

While selling prices have increased, production has also grown: more than half of grape producers and 80% of wine producers have increased their production. Among the winemakers interviewed, the production of Goethe wines has almost doubled in 10 years, from 39 850 litres in 2005 to 73 850 litres in 2015. If we extrapolate this data to the 40 hectares of Goethe vineyards, we can estimate wine production at around 200 000 litres.

Professionalisation, a guarantee of quality for Goethe wines

As regards professionalisation and its corollary, quality improvement, almost two in three winemakers say they have altered their practices. Between 2005 and 2015, the cost of production increased by 13.5% in constant currency, but this increase was more than offset by the selling price for quality grapes, which grew at an average rate of 25% over the same period. It is worth noting that grape producers still use very few crop protection products on their vines; the Goethe grape variety is a hybrid that is more resistant than other varieties.

In the field of winemaking, practices are also evolving. Almost 80% of PROGOETHE wine producers say they have altered their practices, having acquired knowledge and mastered new techniques, and 88% of them have purchased equipment, such as stainless steel tanks and bottle filling machines.

These changes have a direct impact on the quality of the wines produced: all of the actors interviewed agreed that the quality of local wines has greatly improved.

Access to new markets

Wine sales have increased sharply since the launch of the geographical indication project. The market has developed with the emergence of new product ranges, such as sparkling wines, liqueurs and grappas, grape juice and balsamic vinegar. Sales to supermarkets and restaurants have increased significantly: 80% of wineries now sell their products to regional supermarkets (compared to 30% prior to 2005) or export their products to the capital, and 40% also sell to restaurants.

More generally, half of the producers have invested in new products or activities, such as grape juice production or wine tourism.

Exemplary support, but not an isolated case

While this support is exemplary of a process for the qualification of local products, it is not an isolated case. Several other Brazilian products have benefited from support from research to file their geographical indication application: oysters from Florianópolis, Serrano cheese from Santa Catarina and Rio Grande do Sul, high altitude wines and apples from the São Joaquim region, and yerba mate from the northern Santa Catarina plateaux.

Stakeholders

Stakeholders involved in the innovation process

Value chain stakeholders: wine and grape producers’ associations (wineries, grape producers) , traders, restaurants  
Research stakeholders: researchers and technical agricultural services (EPAGRI) federal Santa Catarina’s Federal University and CIRAD
Civil society stakeholders: cultural and tourism associations
Institutional stakeholders: Sebrae (non profit private national organization with government fundings), local government (the mayor)

Stakeholders impacted by the innovation process

Value chain stakeholders: wine and grape producers’ associations (wineries, grape producers) , traders, restaurants, artisanal grape and wine producers
Research stakeholders: researchers and technical agricultural services (EPAGRI) federal Santa Catarina’s Federal University and CIRAD
Civil society stakeholders: cultural and tourism associations
Institutional stakeholders: Sebrae (non profit private national organization with government fundings), local government (the mayor)