During the past three decades considerable changes have taken place within the Icelandic pelagic industry which, previously considered rather fragmented, is now a highly concentrated vertically integrated industry due to considerable consolidations of quotas. During this period, changes in the ecosystem around Iceland have also brought valuable pelagic species such as Atlanto-Scandian herring and Atlantic mackerel to the EEZ, while other species such as capelin have declined. Part of the concentration within the pelagic sector can be attributed to changes in the ITQ management system and company adjustments to laws and regulations. Another aspect can be attributed to the entrance of valuable species into the Icelandic EEZ and decreasing quotas of fishmeal oriented species. Finally technology changes have increased production efficiency in processing and fisheries. All this has altered the Icelandic pelagic industry in three ways: Firstly, processing for human consumption has increased with additional species and advances in processing technology. Secondly, raw material for the fishmeal industry has declined parallel with lower capelin quotas. Thirdly, a number of processing utilities and vessels have been scrapped, affecting employment in many fishing villages.