RÚV reports that further aquaculture permits have been suspended by the government, citing the recent growth of the industry and recent concerns about local fish stocks.
Fish farming has grown significantly in recent years. In 2014, some 8,300 tonnes of farmed fish were exported by Iceland. According to the latest data from 2022, that number has now risen to more than 51,000 tonnes.
Profits have likewise risen rapidly, the total export in 2014 accounting for ISK 1.4 billion [$10.3 million, €9.6 million]. By 2022, that number had risen to ISK 40.5 billion [$298 million, €279 million]. Top importers have been the US, Holland, Germany, Denmark, France, and the UK.
The government decision came in the wake of a recent report on the industry, which found a patchwork of regulation that left the industry largely unsupervised.
One major concern which has made recent headlines is the hybridization of farmed fish following their escape from pens. Conservationists are concerned that the farmed fish introduce parasites into native fish stocks, in addition to competing with them for food. At least 16 cases of escapes have been documented by MAST, the Icelandic Food and Veterinary Authority. Most recently, some 3,500 fish went missing in Patreksfjörður.
The majority of fish farming is practised in the Westfjords, where it accounts for some 5.5% of local jobs. But the industry has also grown significantly in the Eastfjords as well, where it has become a much-debated issue.
Recently, residents of Seyðisfjörður expressed their opposition to proposed increases of the industry in the area, stating that it would narrow the available shipping lanes. In addition to a ferry, Seyðisfjörður is also visited by a number of cruise ships each year, which have become an important part of the local economy.