Number of dairy farmers drops as industry consolidates The number of dairy farmers in Iceland, now 444, has decreased by 155 over the past decade. This is part of a longer-term trend in which the core development is that the farms that remain become larger and more efficient units. The main dairy production areas today are Skagafjörður, Eyjafjörður, and the inland districts of Árnessýsla, near Flúðir in Hrunamannahreppur.