Sheep farming has been a vital activity since the island's founding. Icelandic sheep are hardy and adaptable animals that are well-suited to the challenging environment.

Agriculture and fishing, including sheep farming, generate income and have support Iceland's way of life for centuries. Increased demand for local and sustainable products, both domestically and internationally, have brought quality Icelandic products to new markets.

Sheep in Iceland are raised in a free-range environment and are not subjected to intensive farming practices, making Icelandic lamb a more ethical and sustainable choice for consumers who are concerned about animal welfare and the environmental impact of their food choices.The sector is made up of small, family-run farms that are an important part of the country's cultural heritage, and the traditional methods used to raise and care for sheep in Iceland have been passed down through generations.

Sheep are an inseparable part of traditional Icelandic food. It is a source of high-quality, nutritious protein raised on the rather harsh landscape where few other animals could thrive. Icelandic lamb is known for its tender texture and mild flavor. Icelandic wool is used in a variety of products including clothing, blankets, and other textiles.

Sheep farming has played a vital role in rural Iceland economies and contributed to the recovery after the banking and economic crisis. In addition to generating income and creating employment opportunities, sheep farming has helped preserve cultural heritage and boosted tourism in regions where it has a strong historical and cultural significance.