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Table 3.10 Public procurement legal framework, 2017
Law or regulation Legal reference
(...)
Public procurement of clean and energy-efficient vehicles Law No. 70/2012
(...)

Agriculture policy is the responsibility of the Ministry of Industries and Innovation, which was formed in September 2012 by the amalgamation of the Ministry of Fisheries and Agriculture, the Ministry of Industry, Energy and Tourism and part of the Ministry of Economic Affairs. In January 2008, the Icelandic Food and Veterinary Authority (Matvælastofnun - MAST) was established as an inspection and administrative body with responsibilities that include: food safety; plant and livestock quality, and health-related matters; feed, seed, and fertilizer services; administration of organic production; and monitoring of animal welfare.

The overall objective of agriculture policy is to maintain and strengthen a diverse agricultural sector, as far as natural and marketing conditions allow. The main emphases of policy are: to meet domestic demand to the extent that this goal is realistic; to maintain sustainable production of high quality and healthy products; to improve efficiency and competitiveness; to improve farmers' incomes; to improve creativity and create job opportunities; and to sustain livelihoods in rural areas.

As for dairy farming, the support entitlements for sheep farming are to be phased out by end-2025 and replaced by quality assurance premiums for farmers for sheep meat meeting requirements relating to, inter alia, animal welfare, sustainable land use, and quality.

Table 4.6 General operating environment for agriculture, 2017-2026
ISK million
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
(...)
Organic production 35 34 34 34 34 33 33 33 33 32
(...)

In terms of fish processing, several long-term trends appear to have come to an end in the 2010-17 period. The quantity of fish for oil and fishmeal production, which had been in steady decline since the early 2000s when it accounted for about two-thirds of total fish processing, has fluctuated since 2010 reflecting reductions in capelin catch which had been mostly used for meal and oil production. On the other hand, the quantity of frozen fish had increased steadily to over half of the total by 2010, but has since declined to 40% in 2015 (Chart 4.5). According to the authorities, the change from long-term trends in the mid-2000s is due to climate change and mackerel and capelin stocks moving further north.

The Department of Fisheries and Innovation in the Ministry of Industries and Innovation is responsible for developing policies and preparing legislation. The Directorate of Fisheries, which is run as a separate entity within the Ministry, is responsible for implementing government policy, running the management system, monitoring and controlling fishing activities, collecting data, and imposing penalties for illegal catches. The Icelandic Coast Guard's responsibilities include inspection, control, and enforcement of the laws at sea. The Marine and Freshwater Research Institute (MRFI) in the Ministry is responsible for research and advising the Government on sustainable use of marine resources. (...)

The Fisheries Management Act consolidated most of the existing legislation on fisheries management, including Act No. 38/1990 on Fisheries Management. The Act states that fish resources are the property of the nation and that the policy objective is to promote conservation and efficient utilization of these resources to ensure stable employment and settlement. The Act provides the legal basis for the Minister to establish, through regulations, total allowable catches (TACs) for individual marine stocks which are allocated to individual vessels under the individual transferable quota (ITQ) systems. There are two quota systems: the general system; and a system that applies to small boats (less than 15 GRT) which may only fish with hand lines or longlines. The Ministry reserves part of the TACs for fishing companies that have been affected by significant shocks due to a fall in catches or quotas and for vessels from disfavoured areas that are heavily dependent on fishing.

The MRFI (Marine and Freshwater Research Institute) is responsible for assessing marine stocks and these assessments are reviewed by the International Council for the Exploration of the Sea (ICES). Based on these assessments, the Ministry establishes a TAC (total allowable catch) for each species.

For some fish stocks that are shared with other countries, international and/or bilateral agreements may apply and under them Iceland has a quota share:
• Iceland is a contracting party to the Northeast Atlantic Fisheries Commission (NEAFC) that administers stocks in the international area in the Northeast Atlantic. Icelandic vessels fish blue whiting, Northeast Atlantic mackerel, Atlanto-Scandian (Norwegian spring-spawning) herring, and deep-sea redfish in the NEAFC convention area;
• Iceland has an agreement with the Russian Federation and Norway for fishing cod in the Barents Sea, subject to a TAC;
• Iceland is a contracting party to the International Commission for the Conservation of Atlantic Tuna (ICCAT) and has a quota share for East Atlantic blue fin tuna; and
• Iceland is a contracting party to the Northwest Atlantic Fisheries Organization (NAFO) and has a share in the northern shrimp catch.