Can country-of-origin labeling succeed as a marketing tool for produce? Lessons from three case studies

This paper draws on the theory of product differentiation in a trade context and uses three case studies to highlight the conditions necessary for a successful geographical-origin branding strategy for farm produce in the United States. In so doing, the U.S. country-of-origin labeling (COOL) scheme as a branding strategy for produce is assessed. The paper argues that the use of geographic identifiers to achieve product differentiation is viable, but any claim that such differentiation will prove useful at the country level for farm produce seems likely to be misplaced. In order to raise prices, a key complement to branding is some restriction on the volume of product going out under the brand name. These restrictions may be accomplished by supply controls, quality controls, or entry barriers, but will not be available to all U.S. products currently hoping to gain from mandatory COOL. © 2006 Canadian Agricultural Economics Society.