Icelandic farmers divided over impact of Kaupfélag Skagfirðinga and Kjarnafæði Norðlenska merger on agricultural sector

Farmers in the Skagafjordur region of Iceland are divided over whether the merger between the Kaupfélag Skagfirðinga cooperative and Kjarnafæði Norðlenska, a food production company, will benefit the Icelandic agricultural sector.

Opinions among farmers about the impact of the merger are mixed. Two farmers from the Skagafjordur region explained their contrasting views on whether the purchase and market efficiency will actually improve the economic conditions for Icelandic farmers.

Bjarni Bragason, a farmer from Halldórsstaðir, believes the merger is a positive move. “There is a need for change. Something needs to happen. I think this is a good step,” says Bragason. He thinks this merger can work for everyone, including farmers, consumers, and the company’s operations.

Bragason acknowledges that there are concerns about such a large market share going into the hands of a few, but he believes there is no need to fear this. He argues that there are various safeguards in place, a wider selection of food products available, and everyone has environmental considerations. Bragason also hopes that product prices will rise and that prices will follow market trends. He hopes that this will benefit farmers and also result in better deals for consumers.

In contrast, Gunnar Sigurðsson, a farmer from Stóra-Ökrum, has concerns about the position of farmers overall. He views this merger as just one step in a journey that has spanned over 20 years, marked by the closure of slaughterhouses and increased efficiency. In his opinion, it is clear that the efficiency gains from this merger will go the same way as previous ones over the last thirty years – not to the farmers.

Sigurðsson hopes the merger of Kaupfélag Skagfirðinga and Kjarnafæði Norðlenska will benefit farmers, but he is very concerned that there will be no competition for their products. He believes farmers are just left to do what the company asks them to do and are paid what the company offers. He sees no choice for farmers to get better terms for their products unless they have a unique position, and he does not expect this merger to change that in and of itself.

These differing views among farmers reflect the complex impact of the merger on Icelandic agriculture. What remains to be seen is how this merger will affect the future of the farming industry in the country.