The Akureyri production facility and existing feed operations of Sildarvinnslan's Laxa subsidiary are included in the agreement. Photo: Laxa hf.

BioMar agrees deal for new Iceland feed plant

Global salmon feed producer BioMar and Icelandic fishing and processing company Síldarvinnslan have signed a memorandum of understanding to build a modern net-zero aquafeed production facility in Iceland.

Published Last updated

Denmark-based BioMar said the move would make it the only global feed company in the Icelandic market.

“Partnering with Sildarvinnslan offers a great opportunity to grow the Icelandic industry locally, and in a sustainable way,” said BioMar group chief executive Carlos Diaz in a press release.


The joint venture offers an opportunity to fully utilise by-products from Sildarvinnslans’ fishing operations and tap into BioMar’s extensive R&D portfolio and knowledge in the use of novel ingredients, said BioMar.

The agreement includes Sildarvinnslan’s Laxá production facility and existing feed operations which have been importing and distributing BioMar starter feeds for several years.

“We have had a long-standing relationship with BioMar, and this joint venture is an ideal fit between two companies fully dedicated to driving an ambitious sustainability agenda,” said Síldarvinnslan chief executive Gunnþór Ingvason.

“Our expertise in the production of sustainable marine raw materials and by-products, our fish processing and farming technologies combined with BioMar’s feed production knowledge will give us the opportunity to supply Iceland’s aquaculture industry with feed that will enable a differentiated offering to the global market.”

Growing market

BioMar said the Icelandic aquaculture industry has grown tenfold since 2010 and prides itself on a prime sustainability focus and increased organic production at sea.

The newer land-based projects are taking advantage of the natural environmental conditions to reduce resource requirements by utilising geothermic sources. This makes it an ideal location for a net-zero facility that will reduce the need for imported feeds while benefiting from Iceland’s cost-effective green hydro and hydrothermal energy supply and locally available ingredients.

According to Síldarvinnsnan’s website, the company is the most active in Iceland in the field of fishing and processing of pelagic species and the largest producer of fishmeal and fish oil in the country.


In the 2020 fishing year, the group’s catch quotas were almost 32,000 tonnes. The annual turnover in 2019 was around ISK 22 billion and the company’s profit was around ISK 5 billion. 

Icelandic seafood heavyweight Samherji, which plans a 40,000 tonnes-per-year on-land salmon farm next to the country’s Reykanes geothermal power plant, is the biggest shareholder in Síldarvinnsnan, owning a 32.64% stake.