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3. Faroe Islands

Introduction

The Faroe Islands represent one of the most fisheries-dependent economies globally, with wild-capture fisheries and aquaculture forming the foundation of national exports (95% of goods export, Statistics Faroe Islands (n.d.)) and economic development (25% of GDP from fisheries, aquaculture, and fish food processing (Statistics Faroe Islands (n.d.)).
The Faroese seafood sector operates within a distinctive governance framework that combines effort-based regulation for local demersal species with quota-based management for economically dominant pelagic fisheries. Although challenges arise from fluctuating stock conditions, incomplete international agreements, and environmental constraints, the sector remains robust and internationally competitive. Aquaculture continues to expand under a well-defined regulatory regime, while processing capacity and vertically integrated business structures enhance the industry’s ability to add value and access global markets. Together, these elements position the Faroese seafood sector as a specialized and resilient component of the North Atlantic food system.

Primary production

Capture fishery

Pelagic species dominate the wild capture fisheries in the Faroe Islands. In recent years, catches of the main pelagic species, blue whiting, mackerel, and herring have made up 80-85% of the quantity of total catches. In 2023, catches of blue whiting amounted to 400 000 tonnes, with catches of mackerel and herring 176 and 102,000 tonnes respectively. Catches of blue whiting fluctuate considerably between years, as shown in Figure 3.1, and mackerel catches increased year-to-year in 2019–2023. Herring catches have remained more stable.
Figure 3.1: Catches of the main pelagic species 2019-2023. Tonnes. Source: Hagstova Føroya.
The combined catches of the main demersal species have dwindled in recent years, from 105,600 tonnes in 2019 to 70,000 tonnes in 2023. Cod remains the most important demersal species, but catches decreased by 40% over the period. Saithe catches have also decreased by 40%, from 23 to 16,000 tonnes.
Figure 3.2: Catches of the main demersal species 2019-2023. Tonnes. Source: Hagstova Føroya.
Through bilateral agreements with other countries in the North Atlantic and participation in NAFO and NEAFC, the Faroe Islands have access to fishing grounds outside their own EEZ. This is of special importance for the pelagic fisheries, as the three large stocks – blue whiting, herring, and mackerel – migrate between international waters and the EEZs of the North Atlantic nations. Having access to fishing areas is crucial so that the stocks can be harvested at minimum costs and when the quality of the raw material is best. As revealed in Figure 3, pelagic catches by fishing areas vary considerably between years. In 2019–2023, 30–50% of the total harvests of these three pelagic stocks were caught within the Faroese EEZ, but the fishing grounds east of Greenland, off Jan Mayen, and in the Norwegian Sea were also important in those years.
Figure 3.3: Pelagic catches by area 2019-2023. Tonnes. Source: Hagstova Føroya.
The Faroese freezing trawlers operate mostly in two fishing areas: in the Barents Sea and Svalbard, and in the NAFO area east of Canada and the Flemish Cap. Cod and shrimp make up most of the catches in the Arctic, but cod dominates in the NAFO area, with shrimp catches only registered in 2021. As revealed in Figure 3.4, catches of the main demersal species – cod, haddock, saithe, and ling – in Faroese waters have declined from 60,000 tonnes in 2019 to 33,000 tonnes in 2023, but remained relatively stable in other fishing areas.
Figure 3.4: Catches of the main demersal species by area 2019-2023. Tonnes. Source: Hagstova Føroya.
In 2023, Faroese catches totalled 792,000 tonnes, of which pelagic catches amounted to 701,000 tonnes, demersal catches to 82,000 tonnes, and scallop, prawn and other crustacean catches to 8,000 tonnes.
Table 3.1: Faroes catches in 2023. Tonnes. Sources: Hagstova Føroya.
Demersal
 
Pelagic
 
Crustaceans
 
Atlantic redfish
1,158
Atlantic herring
102,481
Northern prawn
2,481
Angler
1,442
Atlantic mackerel
176,443
Queen scallop
5,306
Tusk
2,152
Blue whiting
399,692
Other
33
Greenland halibut
3,773
Capelin
22,110
Ling
5,213
Other
740
Argentines
6,507
Haddock
10,761
Saithe
15,729
Atlantic cod
31,812
Other
3,729
Total
82,276
Total
701,466
Total
7,820
All species
 
791,561
Statistical sources in the Faroe Islands do not indicate which catches were processed into fishmeal and fish oil, but in 2023 landings at Havsbrún, which is the dominant Faroese reduction company, totalled 408,000 tonnes, whereof landings of Blue whiting amounted to 267,000 tonnes (Sjókovin, 2024; Sjókovin, n.d.). Half of the mackerel catches were used for reduction, and 13,000 tonnes of herring, as well as 41,000 tonnes of cut-offs, i.e. by-products such as heads, bones, and skin, that are left after filleting or processing of demersal catches. In what follows, it is therefore assumed that 408,000 tonnes of the total Faroese catches were intended for feed and 383,000 tonnes for human consumption.
Faroese vessels also frequently land in foreign harbours, especially those engaged in the pelagic fisheries, which frequently take place in foreign jurisdictions or international waters. In 2021, pelagic vessels landed 70,000 tonnes in foreign harbours, 51,000 in 2022, and 177,000 in 2023.
Foreign vessels often register catches in Faroese waters. In 2019-2023, these catches were 300-400,000 tonnes annually, mainly blue whiting, which accounted for 87-94% of the total catch.
Figure 3.5: Foreign catches in Faroese waters 2019-2023. Tonnes. Source: Hagstova Føroya.
The Faroe Islands and Russia have maintained a long-standing bilateral fisheries agreement, which has been renewed annually despite the Russian invasion of Ukraine in 2022. The nations have mutual access to fishing in each other's jurisdictions and have reciprocal access to each other’s harbours for fishing-related activities. However, since 2023 access for Russian vessels has been restricted and is now only allowed for vessels engaged in fisheries under the bilateral agreements. These activities include crew change, bunkering, provisioning, landing, and transshipments. In 2019, Russian transshipments totalled 350,000 tonnes and landings 1,500 tonnes, but transshipments have declined since and, in 2023, decreased by two-thirds. Landings, on the other hand, have varied from year to year.
Figure 3.6: Russian transshipments and landings in Faroese ports 2019-2023. Tonnes. Sources: Hagstova Føroya.

Aquaculture production

In 2023, Faroes aquaculture produced 80,462 tonnes of salmon (gutted weight). Production of salmon has increased sixfold in the last 30 years, from 15,000 tonnes in 1996 to 95,000 tonnes in 2021.
Figure 3.7: Aquaculture production in Faroe Islands 2019-2023. Tonnes. Source: Hagstova Føroya.

Regulation and management

The Faroese fisheries governance is characterized by two fundamentally different management regimes. Local demersal species, most notably cod, haddock, and saithe, are regulated through the national fishing days system. This system allocates a defined number of allowable fishing days to different vessel groups, aiming to control total fishing effort rather than specifying fixed catch volumes. It is revised annually based on scientific assessments. Although important for local fleet segments and coastal communities, today the fishing-days system accounts for only around one-fifth of the total value of Faroese landings (Faroese Fisheries Inspection, n.d.).
By contrast, the bulk of Faroese fisheries revenue derives from pelagic species, including mackerel, Norwegian spring-spawning herring, and blue whiting. These pelagic fisheries are managed through total allowable catches negotiated in coastal-state forums, in which the Faroe Islands participate as an independent party. Another important sector is demersal fisheries in other countries’ waters, often traded for pelagic fisheries. National quota allocations determined in these negotiations and trades are distributed among Faroese vessels and companies in accordance with domestic regulations. As these agreements deliver approximately 80% of the total landing value, either directly or indirectly, international agreements play a decisive role in shaping annual harvest opportunities and commercial expectations.
Aquaculture is governed through a licensing system, with each farming site subject to environmental assessments, veterinary controls, and strict reporting requirements. Production is dominated by Atlantic salmon, and regulatory authorities closely monitor lice levels, disease risks, escape prevention, and the ecological carrying capacity of fjord systems. The Faroe Islands are the fifth-largest aquaculture producer in the world (Bjørndal and Mrdalo, 2023). In contrast to wild-capture fisheries, aquaculture production is more shaped by site availability, biosecurity standards, and market conditions than by stock-based harvest limits.
Recreational and personal-consumption fishing plays a relatively minor role in the Faroese context. It is regulated through gear restrictions, minimum sizes, and certain seasonal protections, although overall catch volumes are small and do not meaningfully affect stock dynamics.
The condition of Faroese fish stocks varies across species groups. Local demersal stocks such as cod and haddock have experienced periods of low biomass in recent decades and are often considered fully exploited or, in some years, overexploited, depending on recruitment patterns and environmental conditions. Local saithe has generally shown greater stability than other demersal species but is still monitored closely due to interannual variability. The structure of the fishing-days system reflects the need for adaptive management in response to these fluctuations.
Pelagic stocks, which account for most of the country’s landings, tend to be in healthier condition but remain subject to political and ecological uncertainty. While many pelagic stocks are assessed as fully exploited, their management is complicated by the absence of long-term binding agreements. The most important species for the Faroe Islands is the mackerel. And most coastal states have reached an agreement for mackerel as of 2026; however, total catches for the year still exceed biological advice, rendering the stock effectively overexploited. Changing oceanographic conditions have also altered migration routes, sometimes affecting access for Faroese vessels or shifting the distribution of catch opportunities among coastal states.
In addition to these major species, several emerging or underutilized resources, such as mesopelagic fishes, deep-sea species, and low-trophic aquaculture resources, including macroalgae, have attracted recent interest. Although these resources are still in the early stages of assessment and commercialization, they represent potential avenues for future diversification. 

Processing and Value Chain Overview: The Faroe Islands

Processing activities in the Faroe Islands are closely aligned with the geography of landings and aquaculture operations. Filleting and fresh-frozen production of demersal fish are concentrated at a few locations around the islands. In Klaksvík, Gøta, and Skopun, there are today active demersal fish processing plants. Pelagic processing, including large-scale freezing and value-added operations, is primarily located in Fuglafjørður, Kollafjørður, and Tvøroyri, which have infrastructure suited to high-volume landings and rapid throughput. Salmon harvesting, filleting, and packing facilities are situated around the islands, with the largest facility located in Glyvrar. Fuglafjørður also hosts one of the region’s most significant fishmeal and fish oil facilities, which processes trimmings and pelagic species into marine ingredients for the aquaculture industry.
The industry relies on a combination of domestic and foreign inputs. Local and international labour, wild-capture landings, farmed salmon, energy, and port facilities form the core of domestic contributions, while foreign inputs include feed ingredients, specialized machinery, packaging materials, and, in some processing plants, seasonal labour. The Faroe Islands’ small population and high processing volumes mean that international labour and supply chains are important for maintaining operations. 

Trade flows of Aquatic food: Faroe Islands

Imports for human consumption

Total imports of fish for human consumption in 2023 amounted to 69,800 tonnes (live weight), whereof 43,000 were imported from the Nordic countries.
 
Nordic
Other
Total
Fresh, frozen, salted, dried
 41,931
 27,351
69,282
Prepared or preserved
1 ,46
771
1,917
Total
 43,077
 28,122
71,199
Table 3.2: Imports of fish for human consumption in 2023. Live weight (tonnes). Sources: Hagstova Føroya.

Imports of Marine Ingredients and Feed

Imports of fish for waste, fish oil, and fishmeal totalled 71,300 tonnes, whereof 61,400 tonnes were imported from the Nordic countries.
 
Nordic
Other
Total
Fish for reduction, waste
50,249
9,926
60,175
Fish oil
3
0
3
Fishmeal
11,159
0
11,159
Total
61,411
9,926
71,337
Table 3.3: Imports of feed from aquatic food in 2023. Tonnes. Sources: Hagstova Føroya.

Exports for human consumption

Exports of fish for human consumption totalled almost 485,144 tonnes in 2023 (live weight), whereof 95,662 tonnes were exported to the Nordic countries.
Most of the fish was exported whole, either fresh or frozen, or almost 318 000 tonnes, predominantly headed and gutted. Exports of fresh, chilled, or frozen fillets amounted to 110,000 tonnes, and 56,000 tonnes were exported as other products.
 
Nordic
Other
Total
Fresh, frozen, salted, dried
95,489
389,352
484,841
Prepared or preserved
173
129
302
Total
95,662
389,352
485,144
Table 3.4: Exports of fish for human consumption in 2023. Live weight (tonnes). Source: Hagstova Føroya.

Exports of Marine Ingredients and Feed

Exports of fish for reduction, fish oil, and feed from aquatic food totalled 215,200 tonnes in 2023, of which 174,400 tonnes were exported to the Nordic countries.
 
Nordic
Other
Total
Fish for reduction, waste
115,275
13,932
129,207
Fish oil
19,628
1,699
21,327
Fishmeal
39,531
25,135
64,666
Total
17,434
40,766
215,200
Table 3.5: Exports of feed from aquatic food in 2023. Tonnes. Source: Hagstova Føroya.

Aquatic food available for consumption Faroe Islands

The total supply of aquatic food for human consumption in the Faroe Islands was 533 500 tonnes in 2023. Subtracting exports, about 48,000 tonnes were available for the Faroese population in 2023. With a total population of nearly 55,000, this corresponded to a per capita consumption of 889 kg per capita in 2023.
 
Tonnes
kg/capita/year
Capture fisheries
383,323
7,038
Aquaculture
80,462
1,477
Imports
69,754
1,281
Total supply
533,539
9,796
Exports
 485,144
8,908
Available for consumption
48,395
889
Table 3.6: Total amount of seafood available for human consumption in the Faroe Islands in 2023. Tonnes (live weight).
Using data from Havsbrún as a proxy for the amount of seafood processed into fishmeal and fish oil, there would have been 264,400 tonnes available as feed in 2023, taking into account both imports and exports. That would have corresponded to a per capita consumption of 4,854 kg in 2023.
 
Tonnes
kg/capita/year
Capture fisheries
408,238
7,496
Imports
71,337
1,310
Total
479,575
8,805
Exports
215,200
3,951
Available as feed
264,375
4,854
Table 3.7: Total amount of seafood available as feed in the Faroe Islands in 2023. Tonnes.

Challenges, threats, and opportunities

Faroese wild-capture fisheries face several structural challenges. The most significant is the lack of comprehensive and stable coastal-state agreements for blue whiting, mackerel, and herring. The absence of long-term deals complicates planning for fishing companies. Environmental variability also presents challenges, particularly for demersal stocks whose recruitment fluctuates sharply with changing ocean conditions. The heavy economic dependence on a small number of pelagic species increases vulnerability to stock shifts, market disruptions, and geopolitical developments that may affect access rights or trade flows.
Despite these challenges, there are notable opportunities. Underutilized species and mesopelagic resources offer possibilities for diversification if biological and economic feasibility can be demonstrated. Innovations in digital traceability, onboard processing, and by-product utilization offer avenues to increase the value derived from each tonne landed. Technological improvements, including more energy-efficient vessels and advanced monitoring systems, may enhance environmental performance and economic resilience.
Aquaculture faces its own set of constraints, particularly related to sea lice, diseases, and environmental carrying capacity limits in the Faroese fjords. As in other salmon-producing regions, dependence on imported feed ingredients exposes farms to global supply chain disruptions and price volatility. Escape risks remain a concern for wild salmonid populations and the sector's reputation. Nevertheless, aquaculture also offers significant opportunities. Improved site management and the development of exposed or offshore aquaculture technologies may expand production beyond current spatial limits. Low-trophic aquaculture, including macroalgae (seaweed), is produced by two companies in the Faroes and offers potential for environmentally sustainable growth and integration into circular production systems.