Hanna Katrín Friðriksson, the Minister of Employment, is planning to bring a significant piece of legislation to the spring session of 2026. The bill would merge the Food Agency, the Fisheries Agency, and the Valuation Agency into a single entity.
According to a statement from the Ministry of Employment, the legislation would also shift the food inspection responsibilities currently held by local health inspectorates to the new agency. “The objectives of the bill align with the priorities expressed in the government’s agreement, focusing on the simplification of administration, streamlining government operations, and enhancing efficiency in the interactions between businesses and the public sector,” the Ministry’s website notes.
A Unified Approach to Oversight
The Ministry’s feasibility analysis points out that the Food Agency, the Fisheries Agency, and the Valuation Agency all carry out regulatory oversight connected to food. Their functions overlap considerably, and their offices are often located close to one another — which makes a case for bringing them under one roof.
The announcement adds: “This unification will facilitate coordinated policy planning and implementation in food production and fishing. It also presents an opportunity to enhance services, reduce bureaucratic hurdles, and improve the overall experience for businesses. We anticipate establishing a robust regulatory body in these sectors, with offices spread across the country.”
Attracting Top Talent
Last autumn, both the Minister of Economic Affairs and the Minister of Environment, Energy, and Climate outlined plans to streamline the regulatory framework. That process is expected to result in oversight of food production, hygiene practices, and pollution prevention moving to the relevant government bodies.
“The food aspect of this initiative will be encompassed within the forthcoming bill introduced by the Minister of Employment. The Ministry of Employment, alongside the Ministry of Environment and the Ministry of Energy and Climate, will continue collaborating to ensure a smooth transition of responsibilities from local authorities,” the announcement states.
Minister Friðriksson was direct about the government’s intentions: “The simplification of administration and the merging of institutions remain key goals for our government. This project reflects that commitment. We are prioritizing efficient and transparent services, advancing digital development, and fostering strong workplaces across the country to promote economic growth and value creation. The newly formed organization aims to become an attractive workplace for our finest professionals in this field, offering ample opportunities for career development nationwide.”
Staff at the agencies involved have already been informed of the planned reorganization. The new entity is set to begin operations in January 2027.
