Iceland’s Cod Quota Cut Starts Taking Toll Skip to content

Iceland’s Cod Quota Cut Starts Taking Toll

Two fish processing plants in Iceland gave notice to their staff yesterday due to the government’s drastic cut in cod fishing allowances. The Union of Fish Processing Plants says this is only the beginning, predicting 500 to 600 people will lose their jobs.

According to Morgunbladid, about 4,500 currently work in fish processing, so the cut would mean a recession of ten to 12 percent.

Both Eskja in Eskifjördur, in the East Fjords, and Humarvinnslan in Thorlákshöfn, south Iceland, fired their entire staff, 53 and 59, respectively, yesterday. The term of notice is between one and six months.

Managing director of Humarvinnslan Hjörleifur Brynjólfsson told the cod quota cut has had extensive impact on his company’s operations, causing a significant decrease in the amount of material processed at the plant.

The cut affects supply and price determination on other types of seafood other than cod, Brynjólfsson said, which has negative influence on Humarvinnslan’s future operating results.

To make matters worse, the flatfish catch was low this fall, which has been the company’s main source of income this time of year, Brynjólfsson added.

Thus Humarvinnslan’s board decided it had to react immediately by reorganizing the company, its operations and number of staff.

Click here to read more about the cod quota cut.

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