CEO of Sláturfélag Suðurlands claims agricultural law changes could save 700 million krónur in slaughtering costs in Iceland

The CEO of Sláturfélag Suðurlands claims that changes to agricultural laws could lead to an annual saving of approximately 700 million Icelandic krónur in slaughtering costs. He emphasizes the need for companies in the meat market to demonstrate responsibility and manage their exemptions from competition laws appropriately.

Steinþór Skúlason, CEO of SS, notes that the company has yet to utilize its exemptions for collaboration under the new agricultural laws, as it must first amend its bylaws. He points out that there are too many entities in the industry, contributing to excessive fixed costs in slaughtering and processing. He believes that with the right adjustments, slaughtering costs could be reduced by a quarter. For sheep, this could mean a decrease of 80 to 100 krónur per kilogram, translating to about 700 million krónur when calculated across approximately seven thousand tons.

Skúlason stresses that it would be unreasonable for farmers not to benefit from these changes, asserting that SS is primarily owned by farmers who cannot act against their own interests. The company must also consider the consumers’ welfare and ensure responsible utilization of exemptions.

This statement highlights the ongoing discussions in Iceland regarding agricultural efficiency and the operational adjustments needed in the meat sector to benefit both producers and consumers effectively.