Iceland: Agriculture near the Arctic Circle
Iceland is a mid-sized European country, located in the northern Atlantic Ocean. With a total territory of over 100.000 square kilometers, Iceland is about the same size as the state of Kentucky. Geographically, Iceland occupies the totality of an island just below the Arctic Circle. Furthermore, the country is mostly flat with some mountainous formations and an abundance of ice fields as well as natural bays. Iceland has a small population of approximately 336.000 citizens, most of which, over 90%, live in a city or urban center. Currently, Iceland’s annual gross domestic product (GDP) exceeds US$16 billion. Similarly, the country has experienced positive economic growth upwards of 2.0% throughout recent years. The Icelandic national economy is divided into 6% agriculture, 21% manufacturing, and 73% services. However, the agriculture industry utilizes about 19% of the national territory, while another 1% is forested. Likewise, the Icelandic agricultural industry employs 5% of the national labor force, while manufacturing employs about 22% and services employ another 73%.
In terms of natural resources, Iceland has geothermal & hydropower, fish, and diatomite. Within manufacturing, Iceland’s industry is focused on aluminum smelting, ferrosilicon production, geothermal & hydropower, and fish processing. Likewise, a large sector of Iceland’s economy is dependent upon the tourism industry. Meanwhile, the country’s agricultural industry has as main products potatoes, carrots, green vegetables, mutton, chicken, pork, beef, dairy products, and fish. Even though Iceland is not a member of the European Union, the country does belong to the European Free Trade Association (EFTA) alongside Switzerland, Norway, and Liechtenstein. Furthermore, Iceland is associated to the EU as a member of the European Economic Area (EEA), which allows for the open circulation of goods and services. This article explores the status of trade and agricultural markets in Iceland.
Iceland: Agriculture near the Arctic Circle
Iceland’s location is strategic for both maritime and airborne trade throughout the northern Atlantic connecting North America and Europe. In terms of trade, Iceland’s main partners are the Netherlands, the United Kingdom, Germany, Norway, and the United States, amongst others. Throughout recent years, the average per capita protein intake of animal origin amongst the Icelandic population has been of 96 grams daily. Meanwhile, cereals, roots, and tubers supply about 23% of the average food energy intake in Iceland.
Simultaneously, land use in Iceland has somewhat evolved throughout the last half century. During the early 1960s, permanent pastures and meadows in Iceland covered some 2 million hectares, while arable land accounted for 120.000 hectares. In 2014, permanent pastures and meadows in Iceland accounted for 1.8 million hectares, while arable land still represented some 121.000 hectares. Given the harsh Icelandic climate, the cultivation of permanent crops is not viable on a large scale. In fact, about 78% of Iceland’s national territory is unsuited for permanent and row crop operations. Therefore, an important sector within Iceland’s agricultural industry is livestock raising, focusing mainly on sheep, dairy production, and even horse breeding. Similarly, fishing has traditionally been an important sector within Icelandic agriculture. However, there are increasing worries about depleting fisheries throughout the region.