The few resources available in Iceland place limits on the economy. Fishing is a dominant occupation because of the rich fishing grounds for cod and herring in the waters that surround the island. Nearly 900 fishing vessels bring to shore about 1,500,000 metric tons of fish. Fish and whale products account for 75 percent of the value of exports from Iceland. The British raised strong objections to the extension of the fishery zone, because they have long regarded the waters off Iceland as an important fishing ground for their own fishing fleet.
Agriculture is based primarily on sheep and dairy cattle.
Sheep graze the open, highland pastures during summer and are rounded up each fall. The cattle feed on lowland coastal pastures during summer and stored hay during winter. Less than 1 percent of Iceland is under cultivation. Hay, potatoes, and turnips are the chief crops. Some vegetables and grain grow in the more suitable areas.