Top view of a ship leaving behind one of Arnarlax's sea-based salmon farms. This is one of the Norwegian-owned companies operating off the Icelandic coast.
Photo: Arnarlax.
Members of the Progressive Party in the Icelandic Parliament (Alþingi) have introduced a parliamentary resolution urging the Minister of Industries to introduce a bill to limit foreign ownership in sea-based salmon farming along Iceland's coasts so it does not exceed 25%.
In preparing the legislation, the proposers - Sigurður Ingi Jóhannsson, Ingibjörg Isaksen, Þórarinn Ingi Pétursson, Halla Hrund Logadóttir, and Stefán Vagn Stefansson, the five members of the Icelandic Progressive Party with Alþingi's seats after the elections on November 30, 2024 - called for taking into account the Faroe Islands' model, where similar restrictions are in place, as well as Iceland's obligations under international agreements and the legal framework of the European Economic Area (EEA).
The Minister of Industries - the powers of the former Ministry of Food, Agriculture, and Fisheries have now been placed under her portfolio following the change of government in December - will be required to submit the bill later this year as the petition urges her to do so "as soon as possible and no later than January 1, 2026."
As the proposers acknowledge in their submission to the Icelandic Parliament, sea-based salmon farming has grown rapidly in the country in recent years, becoming one of its most important export industries and a pillar of economic activity in rural areas, especially in the Westfjords.
However, since this industry is based on the utilization of the country's marine resources and considering the idea that the nation's resources should be under domestic control, they believe that foreign ownership within the Icelandic aquaculture industry should be restricted, as it has been for many years in the Icelandic fishing industry.
"There is no reason why the same principle should not apply to sea-based salmon farming along Iceland's coasts," states the resolution submitted by Progressive Party members to the Alþingi.
"Iceland's economic interests demand that salmon farming be subject to responsible management and oversight, so that Icelandic resources are utilized in the best interests of the nation, and the financial gains from the industry are used to strengthen Icelandic society, the economy, and the country’s dispersed rural communities," the resolution also reads.
According to the analysis included in the proposal, by limiting foreign ownership to 25%, the risk of the benefits of this important resource ending up in the hands of foreign investors who may not prioritize the long-term interests of Icelandic society is reduced.
Likewise, the text also mentions that environmental protection and sustainability considerations "are also important in this context." It is worth noting that, according to a Gallup poll conducted in July 2024 at the request of the Icelandic Association for Nature Conservation, more than 65% of Icelanders oppose open-net salmon farming.
This is even though when the salmon industry was reactivated in the country in 2004, all production areas were located in the East and West Fjords precisely because there are no salmon rivers in those areas so, in case of an eventual escape, it was avoided that farmed fish could be genetically mixed with wild salmon stocks.
Twenty years on, however, both supporters and opponents of the salmon farming industry have arguments to back them up, as 2024 marked a record year for Iceland's aquaculture export value, but it was also the year in which Iceland had to allocate additional funds to prevent fish escapes.
The proposal submitted to the Icelandic Parliament is particularly relevant considering that, currently, a large part of the companies involved in open-sea cage salmon farming in Iceland are foreign-owned, mainly by Norwegian capital.
Arctic Fish, which is owned by Mowi and sells its salmon under the brand name 'Mowi Arctic'; Icelandic Salmon, parent company of Arnarlax and its subsidiaries, which in turn is owned by SalMar; or Kaldvík - formerly Ice Fish Farm - which is majority owned by the Måsøval family, are some examples.
The proposers take this into account, stating that "it is clear that when enacting legislation, consideration must be given to the interests of these entities, granting them a reasonable period to reduce their ownership stakes in these companies over a certain number of years in accordance with the forthcoming restrictions." In their view, in that context, a five-year period would be appropriate.
"The goal of the legislation shall be to ensure that salmon farming at sea in and around Iceland is primarily owned and controlled by Icelandic entities. This will promote the sustainable use of resources, the protection of biodiversity, and the country's economic independence," the proposal concludes.
