Torshavn
Tórshavn anchors salmon farming that represents half of Faroese exports: the fifth-largest global producer runs antibiotic-free operations in ideal fjord conditions.
Tórshavn anchors the Faroe Islands' transformation from fishing nation to salmon farming powerhouse. The pivotal moment came in 1872 when Trappubrøðurnir, a group of brothers from Tórshavn, became the first Faroese to buy a decked fishing vessel. Fishing has remained central since, but salmon farming has now overtaken traditional fishing as the primary economic driver. The Faroe Islands is now the fifth-largest salmon producer globally, with farmed salmon representing half of export value.
The fisheries sector accounts for approximately 97% of exports and half of GDP, making the economy vulnerable to price fluctuations but highly specialized. Three fish-farming companies operate: Bakkafrost (listed on the Oslo Stock Exchange since 2010), Hiddenfjord, and MOWI Faroes. Salmon exports reached DKK 3.3 billion in 2020. The industry employs 1,441 people on land and 1,341 at sea.
A 2003 veterinary regulatory regime became one of the world's most stringent, keeping farmed salmon completely antibiotic-free. The clean, mild waters and strong currents create ideal conditions, while logistics enable fresh salmon to reach American and Asian markets within 24 hours of harvest. Tórshavn functions as the administrative and commercial hub coordinating this specialized economy that has achieved significant growth since 2011.