In 1802, a new market developed in the United States garden seeds sold in small packets. The new market was developed by the Shakers, a religious group whose members took a vow of celibacy and lived in communes ranging in size from 10 to about 100 believers. The Shakers were committed to common property and communal distribution of the output of their many agricultural enterprises.
The Shakers packaged seeds for peas, beets, onions, and lettuce, and distributed the packets throughout the United States. The Shakers dominated the market, and although they tried to coordinate the marketing of seeds from different Shaker villages by establishing sales territories, there was often spirited competition between the Shaker villages. In 1836, the agents from one village complained that their brethren had gone up every river and bayou on the Mississippi and left no hole for them. They wrote, It makes us think that the first and great commandment was almost given in vain.
Why were the Shakers able to dominate the garden-seed market? Although the reasons for their domination remain a mystery, it appears that two factors gave them a comparative advantage. First, they were committed to work as an expression of their religious beliefs: In the words of their founder Mother Ann Lee, Put your hands to work and your hearts to God. Second, their agricultural operations were much larger than traditional farms: In 1850, the average Shaker operation had five times as much land and capital. The Shaker seed business was disrupted by the Civil War and was discontinued in 1870.