Shrimp processing in the fishing village of Hólmavík in the north-west of Iceland is coming to an end as Samherji subsidiary Snæfell, which took over the Hólmadrangur shrimp plant in 2019, has taken the decision to cut its losses.
Hólmadrangur has been in difficulties for some time, and reported a loss of ISK205 million last year, continuing the downward trend over recent years.
The plant has operated using frozen shrimp imported mainly from northern Norway and Canada, as the company has no fishing rights of its own. Last year it processed 1400 tonnes of shrimp. According to the parent company, Hólmadrangur’s location is unfortunate, with no nearby cold storage. This requires shipping production to other parts of the country for storage, with accompanying costs.
At the same time, the market for cold water shrimp has been difficult since the start of the pandemic, with no expectation that this is likely to improve, while to bring its facilities up to standard, Hólmadrangur would require substantial investments in both equipment and buildings.
According to the company, attempts have been made to attract partners to take part in running the shrimp plant, but these have been unsuccessful. Hólmadrangur’s shrimp production will come to a halt at the end of this month. The plant has a staff of twenty.
