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Swiss study: higher prices for cheese with protected geographical indication

Higher prices for cheeses with protected geographical indication
Agroscope experts showed that imports and exports of Swiss cheese with a full PDO (protected designation of origin) have a price premium of about 5% higher than similar products. Keystone-SDA

Indications of geographical origin play a central role in the cheese trade, a Swiss study shows. 

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Designations such as PDO (protected designation of origin) and PGI (protected geographical indication) signal a product’s unique qualities and geographical origin.

PGIs are an important marketing tool for the agribusiness sector. Gruyère or Roquefort cheeses, for example, are worth more than Gouda Holland or Raclette du Valais, Agroscope, the Swiss centre of excellence for agricultural research, said in a statement.

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The difference is that the cheese names Roquefort and Gruyère are protected. In the case of Gouda Holland or Raclette du Valais, only the full name is protected and not the type of cheese.

More competition on cheeses

In their study published in the trade journal Agribusiness, Agroscope experts showed that imports and exports of Swiss cheese with a full PDO have a price premium about 5% higher than similar products. For cheeses whose designation is only partially protected, the researchers found no statistically significant supplement.

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According to Agroscope, the reason is that the cheeses compete with similarly named imitations. For example, a Gouda Holland competes on price with a Gouda of a different origin.

Overall, however, name protection explains only a small part of the price, Agroscope adds. Rather, it can be seen that the type of product – such as blue cheese, soft cheese, or herb cheese – is the main factor for the level of import and export prices.

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