The Icelandic breed of cattle is smaller than cattle in neighbouring countries of Iceland

The adult, Icelandic dairy cow, weighs on average 470 kg (1 050 lb.), while the bulls weigh on everage 800–1 000 kg (1 750–2 200 lb.). It is a hardy and fertile type of cow and produces a great deal of milk. An average cow produces about 6 000 kg (13 200 lb.) of milk per year, with some even going up to 11 000 kg (24 300 lb.). The number of dairy farmers is gradually declining as the productivity of individual farmers increases. There are currently about 1 100 milk farmers in the country. Most milk production and cattle breeding is conducted in the South, West and North-central areas of Iceland, near the major urban centres.

The milk from the Icelandic cow is used to produce skyr, which is like a mixture of yogurt and sweet, cream cheese.