The economy of the area is mainly sheep farming. Sheep farm sizes vary between 100 and 1,000 sheep during winter. Between June and September the sheep and the newborn lambs are set free to graze in the highlands. They are driven home by all the farmers of an area on certain days in autumn with the help of horses and dogs. They are driven into a large fence and afterwards split up between the farmers who recognize them by their earmarks. There is a large lamb-processing factory named Fjallalamb in Kópasker.