The right to slide and package Parma Ham in the Area of production

08/04/03

Parma, 9 April 2003 - Parma Ham producers welcome the modification of the EU law -Regulation 2081/92 - on the protection of Geographical Indications (GI) adopted today by the EU Agriculture Council. One of the key elements of this modification is the recognition of the right for GI owners to prepare and package their products in the area of production to protect the quality, traceability and control of GI products.

`We are delighted that the Council of Ministers has acknowledged the right for GI producers to prepare and package their products in the area of production and decided to write it into EU law. We hope that this clarification, supported by the Economic and Social Committee and the European Parliament, will now open the way to a positive ruling of the European Court of Justice in our dispute against Asda`, commented Stefano Fanti, Managing Director of the Consorzio del Prosciutto di Parma.

The Consorzio del Prosciutto di Parma challenged Asda Stores before the UK Courts in 1997 for not respecting the EU protected denomination of origin (PDO) Parma Ham. The legal dispute concerns only Parma Ham that is sold pre-sliced and pre-packed. The Consorzio has never sought to prevent Asda or any other retailer from slicing Parma Ham on the delicatessen counter where customers can check that the ham that they buy is the genuine product.

Asda had started selling pre-packed hams under the name `Parma` that had been sliced and packaged outside the area of production and without the supervision of the independent Italian controlling body. Under the Parma Ham specifications embodied into EU law, all pre-packed Parma Hams are subject to strict independent quality controls and must be sliced and packaged in the Parma region. These provisions are crucial in providing a guarantee of authenticity, quality and traceability for the consumers as well as protecting the Parma name.

On 25 April 2002, the Advocate General S.Alber of the European Court of Justice issued his opinion on the question. His personal view was that the Parma Ham slicing and packaging operations' requirements limit the free movement of goods and should therefore be invalidated. However, the Advocate General's Opinion is not binding, and the judges of the Court of Justice are still deliberating on the case. The judgment should be delivered sometime in 2003.

`We hope the Court will disregard the Advocate General's opinion and take into account the new EU law recognising the validity of the slicing and packaging requirements. If not, we foresee numerous abuses of Parma Ham's name and reputation in the future to the detriment of both producers and consumers,` concluded Mr Fanti.

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