From Fjords to Global Markets: Scaling Sustainable Salmon Production in Iceland

Salmon farming in the ocean is among the protein productions with the lowest CO₂ footprints available.

Iceland’s natural environment is particularly well suited for this industry, and there remains significant potential for sustainable growth. The strong currents in the fjords where aquaculture is permitted highlight the conditions that can support such development.

Realizing this potential, however, depends on political will to accommodate responsible expansion. That will should be grounded in robust scientific research documenting the sustainability of further growth.

At Industry volumes expected this year of over 60 thousand tonnes, Icelandic salmon production corresponds to more than 250 million meals of healthy, sustainable protein. This illustrates the global relevance of our industry already at today’s scale. As the world’s population grows and demand for sustainable food rises, the ocean will play a key role in feeding people responsibly. Iceland and its surrounding waters are well suited to be part of this solution. With the right framework for growth, we can expand responsibly and create long term value through jobs, export revenues and stronger coastal communities.

Salmon from Iceland is sold into a global market where it competes with other salmon producing countries and with other protein sources. Due to Iceland’s location in the North Atlantic, exports take place by sea and by air. Most volumes are transported by sea, with good access to ports in Northern Europe.

Europe is the largest aggregated market for salmon, and most Icelandic volumes are sold there. The main product is fish in the 3 to 6 kg range, reflecting the high share of processors and retailers that prefer stable volumes and standardized sizes.

Fish above 6 kg are mainly sold to Asia and North America. Demand for larger fish is driven more by the horeca segment, including fish markets, food service, and hotels. Asia has the highest seafood consumption in the world, and the potential for increased salmon consumption is large. Exports to Asia are mainly by air, while North America receives volumes both by sea and air.

The sea route to North America is the only direct sea route of its kind to this market, and it gives Iceland a logistical cost advantage compared to several other salmon producing countries. The United States is the largest single country market for salmon consumption and represents an important opportunity for Icelandic producers.

Operations in Icelandic salmon farming are built on proven technologies and recognized global standards. The industry has also demonstrated a strong capacity to adopt the latest innovations across all stages of the production cycle, supported by intensive investment in equipment, infrastructure, and biological improvements.

During the early years of salmon farming locally, the sector faced biological challenges as it learned to adjust to Iceland’s strict natural conditions. Over time, however, performance has steadily improved, and these challenges have been reduced through increased knowledge, stronger management practices, and targeted mitigation measures e.g. use of targeted lasers to manage salmon lice, the introduction of new and more effective vaccines and continuous improvements in fish health and welfare.

As a result, we see a bright future for the Icelandic salmon industry, with strong potential for sustainable growth, increasing market demand for our high-quality product, and an improving biological foundation that supports long-term development.

Bjørn Hembre, CEO of Arnarlax