Iceland’s seafarers are threatening to tear up future price agreements after claims that capelin prices in the Faroe Islands were up to three times higher than in Iceland during the 2026 season — raising fresh pressure on how value is shared in one of Iceland’s most important fisheries.
In a sharply worded statement, the Icelandic Seamen’s Union said Icelandic fishing companies must explain what it described as a striking price gap for capelin between the two countries. The union argues that if end-of-season settlements fail to deliver acceptable returns to crews, it will urge seafarers to terminate existing pelagic price agreements and demand a significantly higher raw material share in future negotiations.
The dispute centres on the value assigned to capelin at landing — a figure that directly affects fishermen’s pay.
Union claims Faroese prices far exceeded Icelandic prices
According to the union, information presented in the Icelandic parliament suggested that capelin prices in the Faroe Islands reached levels up to three times those paid in Iceland. The organisation stressed that final settlement figures for Icelandic seafarers have not yet been completed and are due under collective agreements two months after the season ends. It also acknowledged that lower Faroese volumes may have led to higher prices.
The union cited an average Icelandic capelin price of ISK 80.64 per kilogram during the 2025–2026 fishing year.
Converted to euros, that equals approximately EUR 0.52 per kilogram. By comparison, publicly discussed Faroese levels were estimated at around EUR 1.42–1.61 per kilogram. However, the union noted that these figures were not based on an official cross-country comparison.
Billions of euros at stake
The union estimated that Iceland’s capelin catch reached 151,000 tonnes during the season.
Using the Icelandic price level, the total catch value amounted to around EUR 77 million before deductions and cost allocations. Applying the Faroese benchmark to the same volume would lift that figure to roughly EUR 225 million. The union argued that this broadly matches export revenue expectations previously discussed by industry representatives.
It said the difference raises fundamental questions over whether Icelandic landing prices reflect true market value.
Transparency demand moves to centre stage
Beyond wages, the union framed the issue as one of trust.
It argued that a lack of transparent information explaining the pricing gap risks undermining confidence among both seafarers and the wider public. The organisation warned that if pricing occurs within closed structures, value could shift away from those harvesting the resource before revenue reaches crews.
The union’s demand is clear: greater transparency in the formation of seafood prices and a larger share of value for seafarers if current settlement figures fail to meet expectations.