in-cyprus 16 September 2023 - by Stelios Marathovouniotis
Over the past few days, a storm has been brewing over issues concerning the production and trade of halloumi cheese.
All parties involved seem rather displeased, Phileleftheros reports, marking one year since the implementation of an agreement designating the product as a Protected Designation of Origin (PDO).
This tempest was ignited by the pricing of goat’s milk supplied to cheese makers. Livestock farmers are demanding a minimum increase of 10 cents per litre, given the discontinuation of government support that was previously in place during the first year of the agreement. Meanwhile, cattle farmers are exerting their influence to ensure that current levels of cow’s milk production, widely used in halloumi manufacturing, do not dwindle.
Last year, in an attempt to achieve PDO status for halloumi, cheese makers agreed to pay premium prices for both goat’s and cow’s milk. It appears that they have, to a large extent, passed on these price hikes to the product itself. Official statistics confirm this trend, despite a roughly 10% reduction in exported quantities; there has been a 10% increase in revenue from halloumi sales.
Estimates suggest that the international market has reacted negatively to the substantial rise in halloumi prices. Other grilling cheeses from various countries, priced significantly lower than halloumi, have stepped in to fill the gap.
Animal food and raw material prices have increased
In February 2022, the cost of animal feed stood at €0.82 per litre. By July 2022, when the agreement for PDO halloumi production was reached, this cost had surged to its highest point at €1.21. In July 2023, the price has eased to €1.09 per litre.
Simultaneously, the price of goat’s milk surged from €1.08 per litre in July 2022 to €1.34 in August 2022, courtesy of the agreement. Today, a year later, it’s retailing at €1.44 per litre. In the sheep’s milk sector, prices rose from €0.68 per litre in July 2022 to €0.85 in August 2022, and presently, stand at €0.95. In the case of cow’s milk, prices were €0.57 per litre in July 2022, rose to €0.62 in August of the same year, and currently stand at €0.64 per litre.
On September 5, the European Commission’s milk observatory released data on producer prices for cow’s milk. It’s worth noting that the average producer price in Cyprus is €0.64 per litre, significantly higher than the European average producer price of €0.44 per litre. Within a year, the average cow’s milk price has dropped by 14%, whereas in Cyprus, during the same period, there’s been a 14% increase in prices. Notably, at €0.64 per litre, Cyprus boasts the highest milk prices in all of Europe. Malta follows closely at €0.56, Estonia at €0.51, and Finland and Italy both at €0.51. Greece takes the sixth position for the most expensive milk, priced at €0.50 per litre.
