Both public authorities and households increasingly use demand as a means to influence the way products are made. The demand for food provides a clear example. In this project we focus on dairy products where demand for “organic” and Swedish origin is a common feature.

In the first part of the project public procurement of dairy products as an environmental policy instrument is investigated. Dairy products as well as other food products are often procured with the explicit aim to stimulate Swedish organic farming. We therefore investigate the economic effectiveness of such a strategy.

The second part of the project aims to explore the possibilities to stimulate Swedish dairy production by demand. The recent dairy crisis was followed by appeals to buy dairy products of Swedish origin in order to support dairy farming. In addition, the effects of the presence of dominant dairy marketing cooperatives is illustrated.

The project is expected to be completed in autumn 2021.