The production of "local food" has gained importance in the public discussion during the last few years as a result of increasing general interest in food safety, as well as environmental concerns regarding food production and transport. Often-cited arguments for purchasing local products relate to their special qualities, to protecting the environment and to the idea of supporting local farmers. But what about the perspectives of other market actors? For food processors and retailers, local products could offer a means of product differentiation and hence help increase their competitiveness on markets. This paper summarises the most significant statements of nine interviews with food processors and food retailers in Vorarlberg, the most western federal state of Austria.