Farmers Urge Minister to Reconsider Proposed Changes

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A bill currently sitting on the government’s consultation portal would scrap a longstanding provision that allows mergers in the dairy industry. That prospect has rattled a lot of farmers, who largely want to keep things as they are.

Herdís Magna Gunnarsdóttir, vice-chairman of the Farmers’ Association, made her feelings clear in an interview with National Radio back in October, comparing the situation to being handed a potato. “The agreement in milk production is incredibly beneficial, and there has been no real push from farmers to seek change,” she said.

Dairy farmer Baldur Helgi Benjamínsson decided to do something about it. He started collecting signatures against the bill and has so far gathered 489 names, which he plans to hand to Minister Hanna Katrína Friðriksson this Friday. The petition puts it plainly: “This bill undermines the working environment that cow farmers have relied upon for nearly 20 years, shaping their production plans and investment choices. The current system has led to optimal milk production, resulting in savings amounting to billions of ISK each year, benefitting consumers through lower prices while increasing earnings for farmers.”

The petition also argues that the existing framework has leveled the playing field for farmers across the country, giving everyone fair market access no matter where they are located. “By moving forward with this bill, the Minister of Employment risks dismantling this success, creating uncertainty and upheaval within the industry. We urge the minister to reconsider and withdraw this proposal.”

Of those who have signed, 295 operate farms — roughly 65 percent of all dairy farms in Iceland, according to Baldur Helgi, who puts the total number of dairy farms at 451. He also noted that some names on the list belong to people outside the dairy sector, suggesting the concern extends well beyond farmers alone.

Viktor Ólason
Viktor Ólason
Viktor Ólason is an Icelandic entrepreneur and founder of Iceland Now. Born and raised in Iceland, he writes about Iceland travel, culture, and news from a true local's perspective - helping readers experience Iceland more deeply and authentically.

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