The price for a liter of milk will increase by 4.8% (6 krónur), bringing it to ISK 132 per liter.
The number of sheep in Iceland may be reduced by 20 percent in order to decrease the production of lamb.
Thirteen hundred tons of lamb meat will remain unsold this fall when the slaughtering season begins.
Minister of Finance Benedikt Jóhannesson hopes that agreements with the European Union on the abolition of tariffs on agricultural imports will take effect mid-way through next year.
Guðmundur Ármannsson, a dairy farmer from East Iceland, was forced to visit a doctor in Reykjavík last week after getting hit in the eye with a cow’s tail. It was his first trip to the city.