Urban agriculture : experiences from the Swedish horticulture

Abstract: Urbanisation has increased the distance between the urban and the rural. Urban agriculture can be a solution to overcome that distance. The characteristic of urban agriculture is the intensive production in intra urban and peri-urban areas. Until 1950s food production in cities was an important part of the urban economy and the urban food supply. Since the 1950s the urban located production of food has almost ceased in Sweden, partly as a result of cheap food imports. The main drawbacks of food imports are contribution of greenhouse gas emissions. In contrast urban agriculture results in the following positive effects; • Shorter transports and decreased need of transports – as a result less emissions • Cities that are more energy efficient and therefore more sustainable • Money is spent locally which benefits the local economy • Gives employment The positive impacts urban agriculture has on a society is the main reason why the thesis is examining the economic factors influencing Swedish urban agriculture. There is also done an examination of the economic advantages, - disadvantages and –constraints for Swedish urban agriculture. This is done through a case study of production of vegetables in the Swedish cities Stockholm and Malmö. The case study is relying on conducted interviews persons involved in horticultural sector in Stockholm and Malmö. Von Thünen’s model of the economic geography of agriculture is used as a theoretical framework for the study. The model consists of critical economic factors, which are profits, bid rents and transportation costs. The findings from the study’s results are the following; Key economic factors influencing Swedish urban agriculture: - Profitability - Perishability and quality of food products - Demand for local food products - Distance to urban markets - Competition and bid rents - Land tenure Economic advantages: - Focus on intensive production of high value types of vegetables close to urban markets gives high returns and allows urban farmers to pay high bid rents - Multiple businesses and alternative business models offer an alternative for urban agriculture and it enables urban farms to pay higher bid rents - Closeness to consumers allows urban producers to adapt to local consumer demands in cities Economic disadvantages: - Fierce competition from other producers - Competition of urban land from other land uses Economic constraints: - Limited access to land - Municipal governments are restrictive with renting out urban land.