Cooperative proposes closure of slaughterhouse in Hvammstangi, Iceland

A local cooperative in Iceland is proposing an end to operations at the slaughterhouse in Hvammstangi. Kaupfélag Skagfirðinga (KS) is seeking to cease slaughtering activities at this facility, as well as at another slaughterhouse in Blönduós, where there will be no sheep slaughtering next year. This decision comes as KS is finalizing the acquisition of B. Jensen, a meat processing facility located in Akureyri.

The slaughterhouse in Hvammstangi is co-owned by the Kaupfélag Vestur-Húnvetninga (KVH), which needs to approve any changes. This intention was discussed at a KVH meeting attended by representatives from KS, and while reactions to the proposal were varied, the discussion was constructive. A council meeting for KVH is set for early December, where the KS proposal will be voted on.

In related developments, sources indicate there will be no sheep slaughtering at the SAH facility in Blönduós for the upcoming year. SAH Afurðir ehf., the owner of this facility, is part of Kjarnafæði-Norðlenska hf., which was purchased by KS in September. This acquisition followed a legislative change that exempted certain meat processing facilities from competition laws.

Moreover, KS is nearing final negotiations to buy B. Jensen, which operates a slaughterhouse and a meat processing plant near Akureyri. The cooperative previously owned the meat processing business Esja Gæðafæði. However, representatives from KS did not respond for comments at the time of reporting.