Sixty-seven per cent of Iceland's total exports are fish-related products and of the total catch the domestic market consumes only a fraction. With its remote location from the main markets in Europe, US and Japan, efficient supply chain management plays a crucial role for the national economy of Iceland. This paper reviews the peculiarities of the supply chains in the fishing industry with its highly fluctuating raw material supply and stringent quality demands. To meet the relatively stable demand for fresh, salted and frozen fish, the supply chain must absorb the variations upstream of the material flow. The paper concludes that the future of the fish industry seems to rely on fish farming in order to meet the requirements of the customers and the objectives set for efficient supply chain management.