Sauðárkrókur is the largest town in Northwest Iceland and the second-largest town on the north coast of Iceland, with a population of 2,612.It is the centre for commerce and services in the district, and an important link in Iceland's food production. In 1871 the first real settlement at Sauðárkrókur took place. The blacksmith Árni Árnason, with his wife Sigríður Eggertsdóttir and several children, settled there to provide blacksmith services to the growing farming community in this prosperous region