Iceland May Be Overproducing Lamb

Concerns surrounding the sale of Icelandic lamb on the international stage might come down to one simple factor: overproduction.

As reported, the Icelandic government wants to earmark 100 million ISK in order to promote the sale of Icelandic lamb in foreign markets. As it is, it is estimated that some 800 to 1,000 tonnes of the meat needs to be sold abroad in order to keep the prices up.

However, Vísir reports, it may just be that Iceland produces and exports too much lamb to meet demand for the asking price. Economics professor Þórólfur Matthíasson is of the opinion that overproduction is the root of the problem.

“It is of course flawed to make consumers pay the difference on products that are certainly overproduced in this country,” he told reporters. “We need to stop this foolishness and tackle the root of the problem, which is overproduction.”

The bill advocating for the marketing subsidy contends that sheep farmers have been operating at a loss, despite the price for slaughter licenses being reduced. Minister of Agriculture Gunnar Bragi Sveinsson emphasised this point with reporters, saying that the spending is done to protect Icelandic sheep farmers, and to prevent the price of lamb from falling drastically.