Skagafjordur is one of the main agricultural districts in Iceland, with agriculture being the main provider of employment in the area. Cattle and sheep farming are the principle activities; however the district is also well known for its horse breeding, and as such the people of Skagafjörður are considered fine horsemen. There has been major growth within fur farming over the last few years, this growth has largely been the result of improved skin quality and increased productivity on the farms. There has also been a steady growth in the cultivation of feed crops such as barley.
One of the largest meat processing plants in Iceland is situated in Saudarkrokur; the produce is sold on both the local and foreign market. Saudarkrokur also has the only sheep skin tannery in the country which also specialises in tanning fish skins. The largest feed manufacturer in the country is on the outskirts of the town, here raw materials that are byproducts of the meat and fish processing plants are utilised to make food for the fur farms. The refuse from this is then further processed into fertiliser and other soil nutrients.
Fishing has also been an area of employment growth within the region. Fisk Seafood, one of the largest fish processing companies in Iceland, has its headquarters here. The company owns and operates four trawlers along with fish and shrimp processing factories. It is also a large stakeholder in other companies that operate within the fields of aquaculture, shrimp and fishing. Smaller fishing boat owner-operators are based in the towns of Saudarkrokur, Hofsos, Selvík and Haganesvik. The shrimp processing plant Dögun operates in Saudarkrokur, its products destined for both the internal and export markets.