Organic Farming in Iceland 2004
Ólafur R. Dýrmundsson
1 Agriculture in Iceland
Agricultural production is of great importance to the national economy
of Iceland. The country’s 4000 farmers produce sufficient food of animal
origin for the population of 290'000, as well as substantial amounts
of vegetables, partly in geothermally heated glasshouses. There are
also some exports of agricultural products.
Icelandic farm, (c) The Farmers Association
of Iceland
2 History and Development of Organic Agriculture
in Iceland
Iceland is a mountainous, volcanic country of 103'300 km2
just south of the Arctic Circle. Although the growing season is short
and the climate is cool, there is clearly considerable potential for
the development of organic agriculture.
The use of agrochemicals and drugs, which increased during the latter
half of the 20th century, is still low, and there is little
pollution in this sparsely populated and isolated country which is free
of several well-known animal and plant diseases. The standard of animal
welfare is generally high. The main technical obstacles, however, are
a shortage of organic fertilisers and feeds and difficulties in growing
legumes such as white clover.
The pioneers of organic farming in Iceland have certainly tackled these
problems with promising results, ever since the energetic Sesselja Sigmundsdóttir
paved the way at her Sólheimar Farm in South Iceland after 1930.
Development has been slow, and when organic farmers founded their VOR
society in 1993, there were only seven organic producers, all without
official certification. In 2004 some 40 farmers and processors were
involved in certified organic production, which shows that this sector
of agriculture is developing at a slow rate.
3 Farm Statistics
Two certification bodies, LÍV and TÚN, were operational
in the organic sector in Iceland since 1996. LÍV ceased operating
in 2001, and since then the organic farmers and processors have been
certified by TÚN.
It is estimated that in 2003 a total of 6'000 hectares were under organic
cultivation, accounting for 0.7% of the total agriculturally utilised
area and 0.8% of all farms in the country. In addition to the cultivated
land, ten organic sheep farms utilise extensive, natural rangeland pastures
for summer grazing. It should be noted that several of the organic farmers
have converted specific farm activities rather than whole farms, but
details on the present situation are lacking.
It is estimated that 20% of the organic farms are not bigger than 5
hectares, that 30% comprise about 10 hectares and that half of the organic
farmers cultivate more than 20 hectares. These numbers only refer to
cultivated land. The size of rangeland for grazing is unknown.
4 Organic Agriculture Organisations
The first organisation was VOR, the National Association of Organic
Farmers, founded in Bændahöllin, the headquarters of the
Farmers’ Association of Iceland, on April 26, 1993. This was followed
by:
- TÚN Certification Body in 1994;
- ÁFORM-Átaksverkefni Development Programme in 1995;
- The Ministry of Agriculture Advisory Committee on Organic Agriculture
in 1996;
- The Council for Science and Technology in Organic Agriculture in
1997; and
- BIRALA - Organic Task Force in 1997 (see logo to the right)
- Hvanneyri Organic Unit 2001
- At the local level the Mýrdalur Organic Community Project
(South Iceland) was functional from 1993 to 1997.
TÚN, the certification body, and Ólafur R. Dýrmundsson
of the Farmers' Association represent Icelandin the European Regional
Group of the International Federation of Organic Agriculture Movements
(IFOAM).
5 Regional Distribution
The pioneers of organic farming were mainly located in the South of
Iceland. However, during the 1990s a few farmers in the North embarked
on conversion, mainly with their sheep flocks, but as yet there are
few organic farms in the West and East of Iceland. Thus at present over
50% of the organic farms are in South Iceland, while processors are
more evenly distributed among the regions.
6 Land Use, Animal Husbandry
Organic cultivation in Iceland is mainly concentrated on the most productive
cultivated land, i.e. well-drained soils high in organic matter. As
indicated above, extensive, natural rangeland pastures are used for
summer grazing, mainly for sheep and horses. As a rule of thumb, the
rangeland belonging to each farm is often 10 times bigger than the cultivated
land where hay, silage and other crops are grown. The same applies to
organic farms, for which detailed information both on land use and animal
numbers is not yet available. They mainly raise sheep, and to a lesser
extent cattle, and emphasis is placed on utilising roughage for feeding,
which is characteristic of the traditional system of animal production
in Iceland.
Six farmers have geothermally heated glasshouses. Organic glasshouse
farming has been practised on at least three of the six farms for many
years, and most of these producers are pioneers of organic cultivation
in Iceland, one of them being Thordur Halldorsson, the chairman of VOR.
These farms are all in the South of Iceland. The main crops are tomatoes,
including cherry tomatoes, cucumbers, green, yellow and red peppers,
as well as vegetables like carrots and cabbages. Cultivation throughout
the year can be achieved through electric lighting, and CO2
from a natural bore hole can be used to encourage plant growth. As a
rule, biological control is applied against harmful insects. Most of
the organic glasshouse products are marketed in Reykjavík.
7 State Regulations, Standards and Certification
The Ministry of Agriculture had a supervisory function through the
implementation of Law No. 162/1994 and Regulations No. 219/1995 with
amendments No. 90/1998 on organic agricultural production. These
conformed to the IFOAM Basic Standards and the relevant EU regulations.
The Icelandic law and regulations, which are available in both Icelandic
and English, state the minimum requirements for certified organic production
methods, with which the standards of the certification bodies must comply.
The provisions of the regulations also apply to bio-dynamic agricultural
production. The certification bodies need an official permit of operation
from the Ministry of Agriculture as well as an accreditation from the
Icelandic Metrology and Accreditation Agency.
 Since
2001 only one certification body has been operating, TÚN Certification
Body. It was founded in 1994, functioning since 1996, after having
provided inspection and certification services from 1994 to 1996 through
the Soil Association of the U.K., which also provided expert training.
8 EU Regulation 2092/91
As indicated above, the Icelandic law and regulations on organic agricultural
production were written in accordance with the EU Regulation 2092/91
and subsequent amendments. Although Iceland is not an EU country, it
is a member of the European Economic Area (EEA). The Ministry of Agriculture’s
Advisory Committee on Organic Agriculture monitors amendments to EU
Regulation 2092/91 and other EU Regulations relevant to organic agriculture.
Such EU Regulations are thus implemented by the Ministry of Agriculture.
Since 1999 Iceland has been implementing EU regulation
1804/1999 and accordingly the TÚN certification body has revised
its production rules.
9 State Support, Policy Initiatives
Unlike in most neighbouring countries, a conversion grant scheme does
not yet exist in Iceland, although it has been proposed on several occasions,
for example by VOR, the National Association of Organic Farmers, and
by some parliamentarians through private members’ bills. Recently an
ad hoc committee, appointed by the Minister of Agriculture to
deal with problems facing sheep farming, has proposed, among other measures,
certain state subsidies for organic sheep conversion. At present the
only state support for organic agriculture based on policy initiatives
is the following:
ÁFORM-Átaksverkefni Development Programme,
established according to Law No. 27/1995, allocated special
funds from 1996 to 1999 to promote the production and marketing of eco-labelled
produce, namely from both integrated and organic agriculture. Several
organic projects were supported, which were mainly related to: promotion
and marketing; inspection and certification; and research and development.
Five organic farmers received direct financial support through this
programme from 1996 to 1999, although funds were not sufficient to cover
a complete conversion grant scheme.
Agricultural Law No. 70/1998 allows for certain state subsidies
to individual farmers who convert certain farm activities or whole farms
to organic production. A contract that was made in compliance with this
law between the state and the Farmers’ Association of Iceland was ratified
in 1999 and revised in 2003. According to this contract, cultivated
land in organic conversion is eligible for a single payment of 30'000
Icelandic kronur (333 Euro) per hectare of arable land and 300 Icelandic
kronur (3.3 Euro) per square metre in glasshouses. It does not provide
for payments to existing organic farms. These payments may be extended
to two years.
In Law No. 162/1994, Article 6, and Regulations No. 219/1995, Article
2, on organic agricultural production referred to above, it is stated
that due regard shall be given to Agenda 21, the action plan of the
United Nations Conference on Environment and Development in Rio de Janeiro,
1992, concerning sustainable agriculture and other matters.
Some local authorities are working on efforts to involve organic farmers
where appropriate, for example composting organic waste for organic
cultivation.
11 The Market
Although organised marketing is still in its early stages of development,
certain positive signs are on the horizon regarding both domestically
produced and imported certified organic produce, mainly food. Small
quantities, large distances and few producers and processors are some
of the problems faced.
One retailer in Reykjavík specialises in organics, and a few
others offer consumers such products. However, much promotion work is
needed and consumers clearly need more information on the quality and
general value of organic commodities. Imports of organic products have
increased substantially over the last five to ten years.
Premium prices for organics normally range from 10 - 30%. No information
is available on turnover, but it is estimated that organics account
for approximately 0.5% of the total agricultural production in Iceland.
The volume and value of organic imports are not known, but these mainly
include processed fruits, vegetables and cereals. They account for about
0.5% of food imports. Therefore, this is still a niche market.
The organic product range is growing, now including hay, silage, barley,
herbs, trees, carrots, potatoes, turnips, cabbage, cauliflower, rhubarb,
tomatoes, cucumbers, peppers, milk, lamb, beef, eggs and seaweed products.
The only exports are seaweed products to the USA.
Organic processing mainly focuses on dairy and herb products.
12 Training and Education
In recent years, some attention has been paid to teaching the principles
of organic farming to agricultural and horticultural students, namely
at Hvanneyri Agricultural University and Reykir Horticultural College.
In addition, short courses have been held. However, more effort is needed
in this area.
Students in these educational establishments and others have also worked
on dissertation projects on several aspects of organic agriculture,
ranging from cultivation to marketing. There is clearly a great need
for more training and education at all levels in order to strengthen
the knowledge base of organic farming in the country.
A few Icelanders have studies organic agriculture abroad, mainly in
Sweden.
13 Advisory Services
On the extension side, in 1996 the Farmers’ Association of Iceland
took the pioneering step of officially appointing Dr. Ólafur
R. Dýrmundsson as the National Adviser on Organic Farming and
Land Use, the first agricultural adviser in the country specialising
in this area. He has worked in close co-operation with organic farmers
ever since the foundation of VOR in 1993, as well as with Ministry officials,
research scientists and training establishments and local agricultural
advisory officers.
While strengthening the advisory services at the national level, the
next step is to generate more interest in organic farming among local
advisers throughout the country as well as among regional representatives
of the Soil Conservation Service.
14 Research Situation
In 1995 an ad hoc Ministry of Agriculture working group identified
the main areas in which research in organic agriculture should have
a priority. Subsequently, the Council for Science and Technology in
Organic Agriculture studied the research needs in more detail and in
1998 proposed the following research priorities:
- Supply and utilisation of organic fertilisers for crop production,
including glasshouse cultivation
- Breeding and growing legumes suitable for Icelandic climatic conditions
- Control of pests and diseases in crops and livestock
- Development and adaptation of suitable machinery and buildings for
organic farms
- Economic aspects of organic farming, including marketing
So far, the main research efforts related to organic cultivation have
involved legumes and organic fertilisers. It is hoped that the establishment
of clear research priorities will serve as a guideline for the preparation
and funding of short- and long-term experimental projects.
An action plan is clearly needed.
15 Challenges and Outlook
Since sustainable agriculture is on the agenda of the Government of
Iceland, it is logical to believe that greater attention will be paid
to organic farming in the future. Rural depopulation is a major problem
in Iceland, and it is clear that the development of organic production,
both vegetable and animal, can be one means of strengthening farming
communities and local processing industries throughout Iceland. A growing
market in which fair prices are paid is vital in the light of growing
competition in all sectors of the national economy.
Subsidies, enhanced training, research and extension, improved market
organisation and consumer education are all important aspects. The challenges
are there already. However, it seems likely that progress will not be
rapid during the next few years.
16 Author
Ólafur R. Dýrmundsson, The Farmers’ Association of Iceland,
Bændahöllin, 107 Reykjavík, Iceland
© By Research Institute of Organic Agriculture
(FiBL), Forschungsinstitut für biologischen Landbau 2004/2000.
All rights reserved
URL http://www.organic-europe.net
Last modified
05.10.2004
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