Icelandic farmers divided over Kaupfélag Skagfirðinga and Kjarnafæði Norðlenska merger impact

Farmers in Skagafjordur, Iceland, are divided on whether the merger of Kaupfélag Skagfirðinga and Kjarnafæði Norðlenska will improve the financial situation for Icelandic farmers.

Opinions among farmers vary regarding the impact of the merger. Two farmers in Skagafjordur express their differing views. Bjarni Bragason, a farmer at Halldórsstaðir, believes this is a positive step. He thinks change is necessary and hopes that those handling this merger can structure it in a way that benefits everyone, including farmers, consumers, and the processing industry. He also understands the concerns that such a large market share is going into the hands of a few, but he doesn’t think it’s something to worry about.

According to Bragason, there is a significant need for efficiency in meat product processing, renewal and infrastructure development for farmers, and long-term plans to deliver profits. He hopes that product prices will increase and that the price of products will follow the price level. Bragason hopes that this move will allow farmers to earn more and believes that this will also benefit consumers.

In contrast, Gunnar Sigurðsson, a farmer at Stóra-Ökrur, has concerns about the position of farmers in general. He sees this merger as just one step in a journey that has been going on for over 20 years, characterized by the reduction of slaughterhouses and increased efficiency. He fears that the efficiency expected from this merger will benefit the same parties as other efficiency measures in the past thirty years, but not the farmers.

Sigurðsson hopes that the merger of Kaupfélag Skagfirðinga and Kjarnafæði Norðlenska will benefit the farmers. But he is very concerned that there will be no competition for their products. He worries that they are surrendering to merely executing what the company asks and accepting what they offer. According to him, the farmer has no choice but to accept better terms for their products unless they are in a very special position, and he doesn’t expect this step to change that.

These differing views reflect the complexity of the situation and the potential impact of the merger on Icelandic agriculture. The outcome of this merger will be keenly watched by farmers and stakeholders in the Icelandic agricultural industry.