In the Golden Circle area, agriculture is practiced extensively as there is a great tradition for milk production, vegetable growing where geothermal energy is used, and meat production, sea-fishing from Þorlákshöfn town as well as fishing in rivers and lakes.
There is a lot of geothermal energy in the upcountry of South Iceland, and it is a prerequisite for development in the area. In the 1940s, the awakening about horticulture in Iceland began and the development of horticultural centers. Horticulture is the largest in the South or about 67% in terms of operating income.
In earlier years, hot springs were used for cooking and coffee making. You can still see the areas where the hot springs were used for cooking and baking, and special utensils were used for this purpose. Early on, people began to use the hot water to heat houses, for greenhouses, and for bathing, a great bathing/swimming pool culture is in the area.
Þorlákshöfn town possesses an excellent natural harbor and it is close to rich fishing grounds. In the period when rowing boats were used it was common for 30-40 boats to be fishing from Þorlákshöfn and many newcomers stayed there during the fishing season.
In the town of Selfoss, there is a strong product processing of southern agriculture and its service. The great innovation and product development in the processing of agricultural products in Selfoss can without a doubt be attributed to decades of experience, knowledge, and professionalism in the area.
Around 1929, the village Hveragerði began to form after a co-operation for the dairy Mjólkurbú Ölfusinga was established. At the same time, green farming began, and various attempts were made to utilize heat that is a characteristic of the town. Having a geothermal area in the center of the town is unique nationwide.
The skyr making factory, Skyrgerðin in Hveragerði, was built in 1930 and was the first of its kind in Iceland. The unique Icelandic dairy product Skyr was the main product, but also the first yogurt in Iceland was produced there, called healthy milk.
The residents of Þykkvabær were known for eating horse meat, which was considered scandalous and unchristian, but the neighboring farmers brought their animals to slaughter in Þykkvabær and the locals go to keep the meat. Þykkvibær is now best known for its potato cultivation. It started in 1934 and later took over other farming. The potato cultivation is the main cultural heritage of the people of Þykkvabær. The sandy soil and flat land are suitable for potato cultivation. Night frost is also less likely due to higher air temperatures along the coastline. Þykkvabær potato factory was established in 1981 and was a way to utilize potatoes that would otherwise have been discarded due to overproduction. In Þykkvabær, crackling is produced from dried horsemeat.
Various breweries have made their way around South Iceland, and two of them are located in the Golden Circle area.
The area has a variety of restaurants and food experiences in connection with the production in the area. For example, you can visit and enjoy the food in a greenhouse, in a "barn loft" overlooking a cowshed, tasting homemade skyr and tasting the many types of beer that are brewed in the area with various taste characteristics.