Aquaculture in Iceland has undergone significant transformation over the past few decades, developing from modest beginnings into a promising fourth pillar of the Icelandic economy. To gain insight into this journey, we sat down with Dr. Jónas Jónasson, head of production at Benchmark Genetics, who has been deeply involved in the industry since its early days. Dr. Jónasson is a recognized figure in Icelandic aquaculture and offers a unique perspective on its growth and future potential.
The Early Days: From Trials to Failures
“Iceland’s aquaculture industry began in the early 1980s, primarily on land,” – Jónas recalls. “We had three farms operating by 1982-84, all trying to raise fish in fresh- and seawater land-based facilities. The conditions were challenging, with cold climates making sea-based farming unfeasible then.”
While hopes were high in those early years, the economic realities soon caught up with the fledgling industry. “The price of salmon was about 90 NOK initially,” he explains, “but when prices plummeted, many farms couldn’t survive and went bankrupt. Eventually, those early ventures transitioned to Arctic char farming.” These early setbacks marked a crucial learning period, setting the foundation for future developments.
A Gamechanger for Growth
According to Jonas, the turning point for Icelandic aquaculture came in the form of new technologies and improved genetics. “The introduction of new technology in sea-based farming and robust salmon genetics, which have doubled in growth rate since 1991, really changed the game,” he says. These advancements enabled Iceland to begin producing salmon on par with regions like Finnmark in Norway, another cold-water farming region.
Moreover, the involvement of Norwegian companies, with their expertise in cage farming, further accelerated the industry’s progress. “Most of the companies operating in Iceland today have strong ties to Norway,” Jónas points out, “and they’ve brought with them a wealth of experience from farming in cold environments.”
A Nation Built on Fisheries
Iceland’s deep-rooted history with fisheries has also played a crucial role in the success of aquaculture. “Fishing has been an integral part of Icelandic culture for centuries,” notes Jónas. “The markets that traditionally buy wild fish from Iceland, particularly in Europe and the U.S., are also major buyers of farmed salmon. This established market presence has been a key advantage.”
He adds that Iceland’s fisheries have built a strong reputation for handling fish with care and precision. “That reputation also extends to our farmed products,” he says. “It’s a great starting point for gaining trust in the global marketplace.”
Surviving the 2008 Financial Crisis
Despite the severe impact of the 2008 financial crisis on Iceland’s economy, Jónas reveals that it had minimal effect on the aquaculture industry. “At that point, the industry wasn’t fully developed, so we didn’t see significant setbacks,” he explains. “In fact, fish exports remained steady due to the favourable currency exchange, which helped exports.”
Aquaculture: Iceland’s 4th Economic Pillar
Aquaculture is increasingly recognized as an essential part of Iceland’s economy today. “Fisheries, tourism, and industry have traditionally been the country’s economic pillars, but aquaculture is quickly emerging as the fourth,” Jónas highlights. With growing demand for salmon globally and Iceland’s proximity to key U.S. and European markets, the industry is well-positioned for further expansion.
The Future of Icelandic Salmon Farming
Looking ahead, Jónas is optimistic about the future of salmon farming in Iceland but acknowledges some challenges. “The carrying capacity along Iceland’s coastline is limited, particularly in the West and Eastfjords,” he says. “The government has set a production limit with an estimated carrying capacity of around 150,000 tonnes, but licenses have only been issued for around 115,000 tonnes. Some of these licenses are specifically for farming sterile fish, which could be crucial in mitigating risks of fish maturating before market size is reached and reduce the risk of escapees affecting wild populations.”
Land-based farming is also a growing area of interest, potentially adding another 100,000 tonnes to Iceland’s production capacity. Several projects are already in development in the South of the country, near Selfoss, and on the Westman islands, and will start bringing substantial volumes of fish into the market in the coming years.
Volcanic Activity: A Potential Threat?
When asked about the recent volcanic activities in Iceland’s southwest region, where Benchmark has most of its breeding activities, Jonas reassures us that the company’s infrastructure is not directly affected. “Our facilities are located outside the zone of volcanic activity,” he confirms. “We have systems to mitigate any risks from electricity breakage, gases, or water contamination.” Interestingly, the geothermal activity in Iceland has provided a unique advantage for aquaculture. “The seawater temperatures pumped from boreholes below 200 meters in volcanic areas are warmer, around 10-12°C, which is ideal for salmon farming. Combined with fresh, well water at 5-6°C running through older lava down to 100-meter depts, this creates perfect conditions for biosecure broodstock and ova production.”
Government Support and Regulatory Landscape
Dr. Jónasson praises the Icelandic government for supporting the aquaculture industry, particularly as it becomes one of the country’s key economic drivers. “The government has been very supportive, but they are also focused on ensuring that the industry remains sustainable,” he says. “All our licenses comply with strict Icelandic environmental laws, and there’s a strong focus on minimizing the industry’s impact on nature.” The parliament has ambitions even to strengthen the law further.
One potential growth area is land-based farming, which has drawn interest from international investors. “Iceland’s unique land and water resources make it attractive for land-based projects, and the regulators are positive about these developments,” he adds.
A Bright Future with Responsible Growth
Regarding future obstacles, Jónas is confident that Iceland can manage its growth responsibly. “At the moment, we’re producing around 43,000 tonnes annually, but with the current license system, we could easily triple that within the next 5-10 years,” he explains. “The demand for salmon is high, and Iceland’s geographic location makes it an ideal production hub for Europe and the U.S.”
While regulations in other countries like Canada, the UK, and Norway are becoming stricter due to environmental concerns, Jónas believes Iceland is in a good position. “The regulators here closely monitor global trends, but we’re not facing the same challenges with our current production levels. The key is to stay ahead by focusing on sustainability, fish health, and welfare.”
With figures like Dr. Jónas Jónasson at the helm, Iceland’s aquaculture industry is set to grow sustainably and innovatively. As the industry continues to develop, it’s clear that it will play a vital role in the country’s future economic success.
