The prices received by farmers are often volatile and how prices change at each stage of the supply chain may not always be symmetrical. A recently published study by Strength2Food partner CREDA and written by Hugo Ferrer-Pérez, Fadi Abdelradi and José M. Gil, looks at whether producers of a Geographical Indication (GI) face less price volatility than if they produced a comparable non-GI product. The authors look at detailed price data over time for the Protected Geographical Indication (PGI) product “Cordero de Navarra” (lamb of Navarra), compared against comparable non-PGI lamb market prices. The results indicate that the PGI farmers face less price volatility and changes in prices are more efficiently transmitted along food supply chains in the case of the PGI. The results suggest that producing under a PGI may help protect farmers from fluctuating prices, positively affecting their wellbeing.
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