European Court of Justice reinforces rules protecting products of designated origins, May 2003

The European Court of Justice confirmed on 20 May 2003 that Parma ham must not only be produced but also sliced and packed in the region, under the EU law that protects products by their designation of origin. The ruling brings to an end the lengthy court battle between UK supermarket firm, Asda, and the Consorzio del Prosciutto di Parma, the consortium that represents the 200 original Parma ham makers.

The dispute between the two parties began in November 1997 when the Italian consortium challenged Asda in the UK courts for flouting an Italian law that states all slicing and packaging of Parma ham must be done in the region. However, the supermarket chain claimed that the Italian law could not be applied under UK law. The case subsequently came before the House of Lords as final court of appeal. The House of Lords stayed proceedings and submitted a reference to the Court of Justice of the European Communities. On 25 April 2002, Advocate-General Alber issued his opinion on the case, in which he backed Asda's claim. In his view, the protection arising from a protected designation of origin did not extend to the requirement that slicing or grating and packaging take place in the region of production.

However, the European Court of Justice ruled on 20 May 2003 that the EU's Regulation on a protected designation of origin (PDO) allows grating, slicing and packaging the product to be made conditional on those operations taking place in the region of production, if the corresponding conditions are laid down in the specification. The 1996 registration of the PDO for Prosciutto di Parma expressly requires the ham to be sliced and packaged in the region of production. In its ruling, the Court stated,

'The Court points out that the grating of cheese and slicing of ham and their packaging constitute important operations which may damage the quality and authenticity and consequently the reputation of the PDO if those requirements are not complied with'.

Therefore, Asda may not slice or package Parma ham at a plant near Chippenham in Wiltshire, as it had previously been doing. However, the ECJ's ruling does permit UK companies to use the Parma name when the meat is sliced on a delicatessen counter in front of shoppers. The Court's decision has angered the UK supermarket chain who had sought to choose where it sliced and packed the meat, in order to keep prices low. In a statement, ASDA told the BBC,

'The court has been duped by the Parma producers' ham-fisted attempt to push up the price of their products. Our argument for the court was based on common sense - no one doubts that Scotch beef remains Scottish if sliced in Southampton; Jersey potatoes are still Jerseys when boiled in Blackpool; Cheddar's still Cheddar if grated in Gretna. We asked the court to apply the same logic to Parma ham sliced outside the Parma region to ensure that we are able to get the best value possible for our customers. After all we are still allowed to slice Parma ham on our deli counters and sell it as Parma ham - it's barmy'.

Protection for designations of origin and geographical indications for agricultural products and foodstuffs was introduced by a Community regulation in 1992. To be able to use a protected designation of origin (PDO), an agricultural product or foodstuff must comply with a specification which defines it in detail. To date, more than 570 products have been registered including cheddar cheese, Newcastle Brown ale and Kalamata olives. In April 2003 EU farm ministers approved a law banning some types of food from being sliced, grated and packaged outside their region of origin, in case it might ruin quality standards.

The Italian food industry claimed another victory on 20 May 2003 when the European Court of Justice also ruled against a French company who were buying Gran Padano in Italy but then grating and packaging it in France.

Links:
European Court of Justice:
	20.05.03:	Press Release: Judgments of the Court of Justice in Cases C-469/00 and C-108/01 [No.42/03]
	20.05.03:	Press Release: Opinion of Advocate General Alber in Cases C-469/00 and C-108/01 [No.36/02]
European Commission:
	DG Agriculture: Food Quality
European Sources Online: Financial Times:
	21.05.03:	Ruling denies Asda its slice of ham
BBC News Online:
	20.05.03:	Asda slams 'ham-fisted' Parma ruling

Helen Bower

Compiled: Thursday, 22 May 2003

The European Court of Justice ruled in the case of the Consorzio del Prosciutto di Parma v Asda on 20 May 2003, favouring the case of the Consorzio under the EU law that protects products by their designation of origin.