Feasibility of Meeting the Demand for Fresh Food from Horticulture in Iceland

• Main Author: Azusa Yamada 1993-
• Other Authors: Háskóli Íslands
• Format: Thesis
• Language: English
• Published: 2020
• Subjects: Umhverfis- og auðlindafræði; Samkeppnishæfni; Garðyrkja; Loftslagsbreytingar; Náð; Iceland
• Online Access: http://hdl.handle.net/1946/34591

Iceland has successfully produced a variety of vegetables all year round using greenhouses. Despite the ability to produce fresh food products in the country using natural resources, imported products have accounted for a considerable portion of Iceland’s market. However, the threats generated by growing global food demand and changing food production systems due to climate change will become a concern for Iceland, as food safety and security are necessary for national security. Given Iceland’s abundant natural resources, is it possible to increase domestically produced food in the market? This study examines the competitiveness of the Icelandic horticultural industry in order to evaluate the feasibility of increasing food production. This study analysed the current market for the main horticultural crops cultivated in the country – tomatoes, bell peppers, salads, mushrooms, and cucumbers – and evaluated the competitiveness of the industry using Porter’s five forces. Prior to the evaluation, interviews were conducted with Icelandic growers to reflect local inputs, and the results were applied to each competitive force. The overall assessment of each force applied to the industry reveals that Iceland’s horticultural industry has moderately high competitiveness, indicating that the industry should be able to increase domestic production using Iceland’s current resources. However, the industry’s products face a strong threat of substitutes, making it difficult to increase food production under the current circumstances. Hence, effective measures should be implemented where needed by taking advantage of two industry strengths: the low power of suppliers and new entrants. Keywords: Horticulture; competitiveness; Iceland; climate change; local product Ísland hefur náð með góðum árangri að rækta allan ársins hring grænmeti af ýmsum toga með notkun gróðurhúsa. Þrátt fyrir getuna til þess að rækta ferskar matvörur í landinu með því að nota náttúruauðlindir hefur komið fram að innfluttar vörur hafa verið töluverður ...