In an era where global markets are becoming increasingly competitive, the preservation and protection of traditional and authentic products are of particular importance. One of the most effective ways to ensure this protection is through geographical indicators, which are not just labels but symbols of quality and authenticity closely linked to a specific geographical area. While trademarks represent a particular company, geographical indications, through a group of producers, represent the region and the country they come from. Therefore, many countries support groups of producers of specific products that, through quality, distinctive production features, and knowledge inherited over years or centuries, proudly represent the culture and tradition of the region and the country.
While in the European Union, there are specific national funds to support groups of traditional product producers, Kosovo does not seem to prioritize this. As a result, some products may no longer be produced and could eventually disappear in the future.
With the financial support of the Embassy of the Republic of France in Kosovo, expertise from French and local experts at the Kosovar Institute for Intellectual Property, and legal support from the law firm LexTrust LLC, after nearly 10 years, it has become possible to have a product protected with a Designation of Origin in Kosovo. This product will serve as an example for other local applications and as hope that with proper support, our farmers and producers will be the best representatives of tradition, culture, and centuries-old knowledge on a global scale.
Sharri Cheese: A Unique Product
Sharri Cheese is one of the most original products in Kosovo. This cheese is known for its distinct taste and high quality, closely linked to the natural conditions and climate of the region where it is produced. Coming from a region with rich vegetation and clean air, combined with knowledge, methods, and traditional production techniques, all contribute to its unique quality.
Sharri Cheese is the first-ever registered Designation of Origin in the Republic of Kosovo and in the history of Kosovo. This can be noted from the Decision Number: Reg. No. 01 No. KS/TGj-EO/2020/4699.
According to local legislation (Law No. 05/l-051 on geographical indications and designations of origin in Kosovo) as well as EU legislation, designations of origin are names or symbols that identify a product as originating from a specific geographical area where the specific qualities of the product are mainly influenced by the geographical environment of that area. These are intended to protect unique products that are linked to a specific place or region that, in addition to the geographical location, also include specific traditional production factors. To obtain such a designation, the product must have a strong and exclusive connection to the place of origin, not only in terms of quality but also in terms of traditions and production techniques. An example is the Parmigiano-Reggiano cheese from Italy, which can only be produced in a specific area and according to special methods passed down through generations. In Kosovo, as mentioned above, Sharri Cheese is the best representation of these types of products.
Use of Sharri Cheese as Collateral
But how can Sharri Cheese also be the first product in Kosovo to offer another aspect of access to finance for farmers?
Everyone who has heard of Parmigiano knows that Parmigiano is a region in Italy and that the cheese produced in Italy from this region bears this name, which is protected by geographical indicators. Those who have followed the 2024 Olympic Games might have noticed photographs of gymnast Giorgia Villa, who was sponsored by Parmesan or Parmigiano. [photo source Instagram: giorgiavilla23]
Since 1953, the regional bank Credito Emiliano has taken a strong turn in small business lending by accepting “rounds” of Parmigiano-Reggiano cheese as collateral. Known in the country as Credem, the bank has now been featured in a Harvard Business School case study titled “Credem: Banking on Cheese.”
The case with Parmigiano and Credito Emiliano Bank falls under the risk that the financial institution takes on in crediting, but in countries like Brazil and Ukraine, this practice is entirely normal and further regulated by specific laws. Recently, Kosovo has taken these countries as examples, as well as many other countries that are enabling innovative ways for farmers to access finance.
In 2023, the Government of Kosovo, with the professional and advisory assistance of the International Finance Corporation (part of the World Bank Group), approved a draft law aimed at regulating two financial instruments to secure working capital financing for the agricultural sector and establishing the legal and economic basis, principles, and rules for their issuance, public registration, establishment, and circulation in Kosovo. The draft law no. 08/l-278 on crop and warehouse receipts is in the approval process in the Assembly, and we hope it will be approved before the elections on February 9, 2025, as determined by the Decree of the President of Kosovo. Follow the link: [https://www.kuvendikosoves.org/shq/projektligjet/projektligji/?draftlaw=520 ]
With the approval of this law, not only will cheese products that can be stored and used as collateral be registered, but also other agricultural products, whether processed, ready to use, or to be produced, will be able to be used as collateral to obtain loans from financial or microfinance institutions or receive any other type of financing from investors, agricultural input suppliers, or collection points.
Conclusion
The use of Sharri Cheese as collateral presents an innovative opportunity for Kosovar producers by creating a new link between cultural heritage and access to finance. The registration of this first product with a designation of origin in Kosovo marks an important milestone in the protection of traditional products and the development of agriculture in the country. If the new law on crop and warehouse receipts is approved in the National Assembly, it will pave the way for a future where high-quality products like Sharri Cheese will not only be protected and promoted in the European market but will also serve as a valuable tool for securing financing and helping sustainable economic development in the region and Kosovo. This approach will strengthen the position of Kosovar farmers, giving them the opportunity to represent the country with dignity in international markets and preserve Kosovo’s rich cultural heritag
Support and Acknowledgements
In relation to the achievements in the registration of Sharri Cheese, the producers have had continuous support from the Embassy of the Republic of France in Kosovo, along with many French and local experts from the Kosovo Institute of Intellectual Property and the legal representatives of the Sharri Cheese Producers Association – the law firm LexTrust LLC.
The next step is registration in the European Union and undertaking customs measures according to Law No. 06/l-015 on customs measures for the protection of intellectual property rights.
Please find attached the article in Albanian language.