Terroir is a French concept suggesting that the qualities (and quality) of agricultural and rural products and services are determined by the physical and socio-cultural environment of their origin. In this paper, we refine the conceptualisation of terroir to clarify the integrated relationship between its physical-natural and socio-cultural constitutive domains through place, history and the senses. Using this reconceptualization, we theorise terroir's unique and powerful contribution to sustainability through the integration of place and sensory, visceral experience. In turn, we derive six propositions that describe the relationship between terroir and business actions, with clear implications for the sustainability of rural businesses and regions.
Terroir is a French concept relating the qualities and quality of agricultural products to their physical and socio-cultural place of origin. It is increasingly used by business and policymakers as a marketing technique to provide economic benefits (e.g., Lenglet 2014; Wine Australia 2015), and to potentially preserve cultural heritage (e.g., Bauer 2009) and the environment (e.g., Bowen 2010). The rising interest in this interdisciplinary and sometimes controversial concept (e.g., Bosker 2017; Matthews 2016) presents an opportune time to consider important future directions for research and collaboration. Here, we present a preliminary consensus on future research priorities for terroir drawn from interviews with 36 academic, industry and policy experts. The experts were selected for their expertise and global recognition, while ensuring a balance of geographic regions and gender. The preliminary areas identified as priorities for future terroir studies are as follows: Following the identification of priorities including the environment, climate change, marketing advantages and cultural differences, it is clear that understanding terroir’s connection to the broad idea of sustainability (environmental, social and economic) is of critical importance. To advance this we present a revised conceptualisation of terroir, which emphasises its connection to sustainability through the integration of physical-natural and socio-cultural aspects. Using this conceptualisation, we develop seven propositions describing the relationship between terroir and business decisions, with clear implications for business sustainability.
In this paper, we test to what extent Food Quality Schemes (FQS, including Geographical Indications and organic products) contribute to the social and economic sustainability of farmers and regions through employment and education. Through employment, FQS may counter the urban migration trend affecting rural regions, and help retain economic and social capital in the local region. Indeed, as FQS are often small and specialised sectors, the economic inefficiency of such businesses may translated into greater employment and social sustainability. Separately , by requiring a higher-level of quality and hence skills, FQS may encourage greater local educational attainment or skilled immigration. To test these propositions , we analyse the employment and educational outcomes of 25 FQS. Our results show that the FQS products examined have a 13% higher labour usage (labour-to-production ratio) compared to reference products, indicating that they provide greater employment. Additionally, wage levels are 32% higher in FQS compared to references. Despite providing greater employment and higher wages, profitability of FQS (i.e. how much turnover/profit is generated per employee) is nevertheless 32% higher for FQS compared to reference products, due to the ability to attract higher product prices. Finally, there is no clear link between FQS and greater (or lower) education attainment in the supply chain. Overall, our results suggest that FQS can provide a strong contribution to local employment, employee income and business profits, strengthening the social and economic sustainability of producers and regions.