Farmers in Öxarfjörður create sustainable wool processing business at Gilhaga II in Iceland

In the Öxarfjörður region, farmers at Gilhaga II are charting a unique path in agriculture. Known as wool farmers, they purchase wool from local neighbors and process it into yarn in a small factory located on their farm premises. Five years ago, Guðrún Lilja Dam Guðrúnardóttir and Brynjar Halldórsson received an unfinished business plan that they decided to further develop. Their aim was to create an employment opportunity tied to tourism while staying at home.

Taking the plunge, they established a business focused on wool processing, which has successfully created a full-time job at the farm. They source their wool exclusively from local farmers and emphasize that small-scale local processing appeals to many who knit with wool. There is a strong demand for directly sourced yarn from farms, and international visitors often come to purchase finished sweaters.

Guðrún notes that while small wool processing operations are common in other countries, there are few wool farmers in Iceland. Currently, there are only two such operations in the country, with hopes for more in the future. This initiative highlights the potential for local entrepreneurship in agriculture and promotes sustainable practices within the community. The farmers’ commitment to local resources not only supports their livelihood but also fosters a growing interest in wool-based products, both domestically and among tourists.