Main factors explaining the participation of beef cattle farms from Navarra (Spain) in instruments aimed to products differentiation

Abstract

Beef cattle sector is readapting to increasing requirements from the demand, which looks for a differentiated product, with constant quality, in a market beginning to be dominated by great distribution companies. Mechanisms to differentiate production are been implemented in this context, co-ordinating both production and marketing processes and integrating livestock farmers into the commercial system. This paper study the relation between these mechanisms and the characteristics of the livestock systems, addressing the causes explaining the voluntary integration of farmers in them. The research area selected was the Comunidad Foral de Navarra due to the existence since more than ten years ago of the Protected Geographic Indication (PGI) «Ternera de Navarra», created to support and promote beef meat from Navarra. In addition to the PGI there also exist differentiation mechanisms represented by small private quality labels implemented by farmers. The development of a Logit model based on a survey to farmers has allowed to identify which are those variables with greater influence in the decision of integration into the PGI. Additionally, results show how this Indication is an important instrument to support some specific livestock systems trough the marketing and promotion of their production. So, the PGI can be considered as a rural development instrument that increased the added value of certain products in less favoured areas, while private labels focus on integrating greater and more intensive farms, more competitive and better adapted to market exigencies.