The promotion of locally produced food has been a growing marketing trend in recent years.
Locally produced food is associated with positive values such as environmental benefits,
fresher and safer products as well as contributing to building closer ties between people in local
communities.
We use a case study were a local fish auction was established in the Stockholm
area in Sweden with the aim to supply the local market with fish, mainly pikeperch, from the
region. Using monthly prices we investigate if the establishment of the auction has resulted in
a price premium and separate markets for locally caught pikeperch. Our results show that there
is no price premium and that the Stockholm market is not decoupled from the national market
after the establishment of the new auction. In fact, the Swedish market appears to become more
integrated and direct buyers of pikeperch have to pay more to fishers after the establishment of
the auction.