Filenews 13 October 2025 - by Angelos Nikolaou
In a period of rapid changes and challenges for the primary sector, the Department of Agriculture is dynamically proceeding with the modernization of Cypriot agriculture, aiming to enhance the competitiveness and sustainability of the sector. Despite the long-standing difficulties and the declining contribution to GDP, agriculture remains a pillar for the economy, the environment and the social cohesion of the countryside.
The Cypriot economy, mainly from 2000 until today, is characterized by the growth of the tertiary sector (services) and the contraction of the other two sectors of the economy(primary and secondary).
Agriculture today contributes only 1.8% to GDP and employs 3.4% of the workforce, according to the Statistical Service. However, if the food processing industry is also taken into account, the percentages skyrocket: 6% in GDP, 11% in employment and 30% in exports. This proves that agriculture, in addition to being an economic activity, has a crucial role in preserving the social fabric, providing raw materials, protecting the environment and highlighting tradition.
According to data from the CBO (2024), agricultural holdings number 28,782, with an average area per applicant of 4.5 hectares. However, 85% concern small farms of less than 5 hectares, covering only 28% of the total area.
One of the most serious problems is the ageing of the rural population. The average age of farmers remains at 63 years, while 76% are over 55. Very few have an agricultural education: only 0.4% have full training.
This structural development is mainly the result of the change in the operating framework of the agricultural sector after EU accession, and in particular of the reduction of protectionism, the abolition of price support, the decoupling of aid from production, the simultaneous reduction of prices and subsidies, the increase in input costs, the opening up of markets and the functioning of the agricultural sector in a highly competitive context.
Agriculture in Cyprus is directly affected by the consequences of climate change. Drought, drought, extreme weather events, reduce productivity and product quality, while increasing diseases and costs.
The Department of Agriculture has implemented a new Risk Management System, funded by National Resources, to protect producers from the effects of the climate crisis. The Risk Management System is the "safety net" of producers against threats and crises. The management of risks in agricultural production is done through the implementation of Schemes managed by the Department of Agriculture and financed by National Resources, through the Fund for the Protection and Insurance of Agricultural Production.
Competitiveness is a priority – A new strategy until 2029
In response to the above problems, the Study for the Development of the Agricultural Sector was prepared, which formed the basis of the new Strategy for the Development of the Primary Sector, approved by the Council of Ministers on October 2, 2024.
The Strategy covers the period 2024-2029 and includes 11 Actions, with priority given to professional farmers: Green Competitiveness and Entrepreneurship, Strengthening Livestock Farming, New Financial Tools, Promotion of Agri-Food Products, Strengthening the Position of Farmers in the Value Chain, Product Quality and Certification, Vocational Training, Institutionalization of Farmer's Offices, Spatial Development and Land Utilization, Risk Management, Adaptation to Climate Change Change, Promotion of Cypriot Products and Strengthening of Local Production.
Emphasis is placed on the promotion of high value-added products, such as PDOs and PGIs. Already 13 Cypriot products have been registered in the EU, including Halloumi, Geroskipou Loukoumi and Paphitiko Sausage. Specifically, in relation to PGI and PDO, 11 products have already been registered as PGI, Geroskipou Loukoumi, Geroskipou Almond Sugared Meat, Paphitiko Sausage, Sweet Rose of Agros, Pitsilias Ham, Pitsilias Sausage, Lountza Pitsilias, Smyla Spaghetti/Sklinitzi Spaghetti, Halitzia Tyllirias, Tertziellothkia and Agros Rodostama. Two products have been registered as PDO, Kolokasi Sotiras/ Kolokasi – Poulles Sotiras and Halloumi. Furthermore, the file on the Cyprus Red Potato has been forwarded to the EU for examination at EU level.
Also, a Cyprus product label is established, to strengthen the identity and protection of local goods, but also to combat Unfair Commercial Practices in the supply chain.
The "e-basket" Price Observatory is already operating for fruit and vegetables, while a new Financial Tool for young farmers is being prepared, through cooperation with banks. More specifically, the financial tool will be aimed at young farmers who have recently been approved by the relevant RDP 2014-2020 Measures and will also cover the next applicants of the investment measures of the CAP Strategic Plan 2023-2027. This financial tool aims, both to meet the need for liquidity and, in the longer term, to contribute to improving the viability of agricultural holdings in agriculture and livestock farming.
Significant changes are also being promoted in the potato cultivation sector, with the restructuring of the Cyprus Potato Marketing Council and the creation of a new Public Law Organization and a private company for its commercial activity.
Common Agricultural Policy: Financial support and development measures
The Common Agricultural Policy (CAP) remains the main support tool for the sector. The CAP Strategic Plan 2023–2027, with a total budget of €455 million (€378 million from the EU), includes: Direct Payments (€238 million) Sectoral Interventions (€18 million) Rural Development (€199 million) By the end of 2024, more than €119 million had already been disbursed.
At the same time, through the Recovery and Resilience Plan, actions are being implemented for the training of young professionals in agriculture, with scholarship sponsorships.
Cypriot agriculture is facing critical reforms. The new development strategy, combining national and European resources, aspires to lead the primary sector to a more sustainable, competitive and extrovert future.
