Land and Forest Iceland signs agreement with Orkugerðin for the purchase of organic fertiliser
21st April 2026
The majority of the fertiliser used by Land and Forest Iceland in its projects will henceforth be domestically produced organic fertiliser. An important step towards this goal was taken on 9 April, when a new procurement agreement was signed with Orkugerðin in Flói.

Distribution of organic fertiliser on a land reclamation site. Photo: Hreinn Óskarsson.
The agreement is a logical continuation of the decision made by Land and Forest Iceland towards the end of last year to reduce the use of imported synthetic fertilisers and transition more strongly towards organic alternatives. This shift brings multiple benefits: it significantly reduces the institution’s carbon footprint and increases the utilisation of domestic organic fertiliser.
For many years, meat producers in South Iceland and the capital area have delivered the majority of by-products not used for food production to Orkugerðin’s processing facility in Hraungerði, in the municipality of Flóahreppur. There, Orkugerðin recycles offcuts, bones and fat into fertiliser meal and tallow. Over recent decades, fertiliser meal has proven to be highly effective in land reclamation projects on sparsely vegetated restoration areas.
A good example is the Hekluskógar area, where bone meal has been successfully used to build up sufficient soil crust to enable seeds of birch and other plants to germinate and grow. One of the main advantages of bone meal in such conditions is its slow-release properties, with fertilising effects lasting several years. In addition, this type of fertiliser contains key nutrients that vegetation often lacks, such as phosphorus and nitrogen.
Collaboration between Orkugerðin and the predecessors of Land and Forest Iceland — the Soil Conservation Service of Iceland and the Icelandic Forest Service — spans several decades. With this agreement, Orkugerðin and Land and Forest Iceland are taking a significant step towards a circular economy and supporting more environmentally friendly restoration of vegetated land through the use of recycled Icelandic fertiliser products.

At the signing of the agreement. From left: Ágúst Sigurðsson, Director of Land and Forest Iceland; Hreinn Óskarsson, Division Manager at Land and Forest Iceland; and Ólafur Wernersson, Managing Director of Orkugerðin. Photo: Hreinn Óskarsson.
See also relevant news story: Organic Fertiliser on the Rise at Land and Forest Iceland
