The re-emergence and modernization of traditional goat-cheese production in Jamtland led to the articulation of a localized agri-food system that represents the frontline of the return and reinforcement of local food in Sweden. Already in the 1970s, some initiatives were undertaken to formalize the productive activities of this branch and to improve the product quality. The most important project was the articulation of a cooperative that, unlike all other Swedish cooperatives, engaged its members in the development of a joint trademark, development of a standardized assortment, common marketing efforts and finding creative solutions for infrastructure problems. Despite the overall success, we also found some downsides. Producing goat cheese requires that at least two people are involved, because the workload often leads to body injuries and illness for people working alone. By studying the institutional frameworks, rules and regulations, the economic function and entrepr! neurial dynamics, and the dynamics of knowledge and competences, the article highlights how and why farm dairies in Jamtland became reinforced and modernized. This grasps both the actions of individual economic agents and their interaction with their environment. A special emphasis was put on the role of regional authorities in this process. Even though many obstacles have been removed and the trade has found successful ways to solve strategic issues concerning product development and marketing, there are still important structural shortcomings that might decrease the profitability and endanger the future development of the trade. There is a lack of experience and infrastructure to solve more complex problems like animal healthand the potential risks related to the consumption of unpasteurized cheese and the increasing incidence of Tick-Borne Encephalitis (TBE).