Competition on a local market – a historical study of market gardens in Stockholm

Abstract

In the period 1880-1930, the interest in gardening products rose substantially on the Swedish market. Import of horticultural produce as well as domestic production increased 20 times. The competition on the horticultural market significantly increased from the 1930s. The costs of fuel and labor rose, and imports took a larger share of the Swedish market as the century progressed, except during the wars. Competition was stiff from countries with lower production costs. After World War II, a series of measures were introduced to stabilize the world economy and kick-start trade. These included the first General Agreement on Tariffs and Trade (GATT), intended to boost international trade by reducing customs duties and trade quotas. At the negotiating table Sweden was particularly anxious about the export opportunities for major industries. This meant easing imports for some products for the sake of the balance of trade, and one category sacrificed was horticultural products. This became a backlash for the market gardens, and the number of companies decreased or the production rationalized and specialized. But there are examples of small-scale family businesses that survived competition from largescale, modern companies in southern Sweden, and increasing imports and rising costs of fuel and labor. These businesses adapted their production to the demands on local markets. Two of these have provided case studies: Nilsson's market garden on Runmaro in the Stockholm archipelago, founded in 1929, and Nora market garden in Danderyd, founded in 1938 and run by the Welander family. Nilsson had a focused strategy, providing a custom range of products to wealthy summer visitors in the Stockholm archipelago. Welander had a differentiated approach, selling products of superior quality, with customers including a delicatessen in Stockholm.