One of the characteristics of the Icelandic horse is the great variety in colouring. The breed is not linked to any particular colours - attested to by the fact that the Icelandic language has hundreds of words to describe the colour of a horse. Only one farm is dedicated to breeding horses of a specific colour: Kirkjubaer in southern-Iceland, where all the horses are a hue of red.

It is thought that in Iceland there are now some 70-75 thousand horses. Most farmers still keep horses and some breed horses exclusively, often keeping hundreds at a time. Most horse farms breed horses for riding, though there is a great deal of meat produced as well. Horse meat is eaten in Iceland and much is exported to Belgium and other European countries. Japan also imports a considerable amount of Icelandic horse meat each year. Furthermore, some farmers have recently based their income on the sale of blood drained from fillies. The blood is used in the production of hormone-based drugs.

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Breeding horses for riding remains, however, the main concern for almost every farmer. Many horses are sold in Iceland each year, especially in Reykjavík and other towns where riding has become a popular sport. Outside most town one will find extensive stables where horses are kept at livery or attended by the owners themselves. Organisations exist in almost every part of the country to promote horsemanship and it is estimated that no fewer than 30 thousand Icelanders practice riding as a sport or for the benefits of exercise and outdoorsmanship. It is not uncommon for children to be given a horse when they are old enough to ride and care for it and many urban families keep five or ten horses for riding.

The popularity of the Icelandic horse rests primarily on versatility. The great variety of walks and its endurance make it especially suited to travelling. It is on long rides that the breed's qualities are shown to their best advantage and it is primarily popular among those who wish to ride through the countryside to enjoy the exercise and to commune with nature and with the horse. All over the world travellers are offered package tours riding on Icelandic horses. Trips over mountain areas are widely advertised in Iceland and Scandinavia. The breed also does well in shows and races, and Icelandic horses always attract attention at international meets where all the major breeds are represented.

Icelandic horses are powerful and sturdy, meeting all the demands a rider could wish to make. But the breed has a gentler side as well and is well suited for children and as a horse for the handicapped. Given the proper training the Icelandic horse can be adapted to most any use. In former times it was a work horse in addition to being used extensively for travel in Iceland. Conditions were frequently difficult, the work was hard and there was often a shortage of fodder. Horses were sometimes not stabled in winter. But all this has changed now as the Icelandic horse has been adapted to new uses in an age of technology and mechanization.

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