Without herring, Iceland would likely not have been able to develop into a modern society. The great herring boom began around 1870. Norwegians came to Iceland and used huge land-based nets in the East Fjords. Norwegian shipowners were soon able to afford land and built houses and piers. However, a cold spell beginning in 1883 with pack ice and cold winters brought an abrupt end to Norwegian fishing activities.
It wasn't until the beginning of the 20th century that they returned to Iceland. The huge Norwegian fleet was a fascinating sight for Icelanders. The Norwegians caught fish in the waters off northern Iceland with drift nets. Purse seine nets were also used very successfully. New herring towns were founded, and many Icelanders found work processing herring for Norwegians.
Some Icelanders also entered the big business as entrepreneurs. Norwegian dominance in the industry declined, and in 1916, the number of barrels processed by Icelanders exceeded the amount processed by Norwegians for the first time. Power-driven ships and efficient equipment made large-scale herring fishing possible.
Salted herring became an important foodstuff, especially during the two World Wars. Besides the Scandinavian countries, Germany, Russia, and the USA were the most important markets. Fish oil and fishmeal were also produced on a large scale from herring.
In some years, herring products accounted for almost half of Iceland's export earnings. However, Icelanders discovered that herring is not an inexhaustible resource. Intensive fishing led to overfishing, and catches temporarily fell significantly in the mid-20th century. Then catches rose again, and the herring towns along the coast experienced a brief heyday.
In 1969, the herring shoals suddenly disappeared, and the herring adventure was finally over.