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This study concerns how olive oil producers and local bureaucrats in western Turkey use geographical indications (GIs) as a localist strategy to strengthen their position in global markets by challenging conventional agricultural practices. The study employs the disarticulation approach of global commodity chain analysis in order to understand which factors delink people and places from conventional commodity chains/industrial chains and link them instead to GI chains. The results of the study indicate that regional disadvantages—e.g., high production costs due to land characteristics—are the main factor delinking local actors from the conventional olive oil commodity chain. Furthermore, certain dynamic rent opportunities that are related to characteristics of territorial quality and to local cultural characteristics also contribute to the linking of the region and producers to GI chains.

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This study aims to contribute to the literature of place-based labels (implies a special quality, reputation or characteristic that can be attributed to its geographical origin) by developing a conceptual framework identifying both the specific governance mechanisms that strengthen individual cases, and the general governance mechanism that produces different levels of potential for different product groups. For this aim, this article introduces the concept of policy rents and resource rents to understand and analyze how differences between characteristics of the place-based labeling process (the options that local actors negotiated in label design) and differences between crop characteristics (the unique features of agro-commodities different from others) affect efforts to develop and benefit from a place-based label.