The issue of the production of PDO halloumi is entering a new, critical phase, as the government is called upon to balance between the strict standards of the European Union and the painful reality brought about by foot-and-mouth disease in the livestock of Cyprus.
The government proceeded yesterday with the issuance of a decree which provides for a drastic reduction in the minimum proportion of goat and sheep milk in PDO halloumi, setting it from next Friday at 15% until the end of the year, instead of the current 25%.
The proposal of the Ministry of Agriculture, which was urgently sent for consultation to stakeholders on May 8, 2026 through the Ministry of Commerce, comes as a direct response to the crisis caused by the outbreak of foot-and-mouth disease in the island's livestock.
The decision is based on alarming production data recorded by the Department of Agriculture. The foot-and-mouth crisis that broke out in February 2026 led to the slaughter of 40,128 sheep, goats and 2,816 cows in 109 units, causing an overall reduction in milk production of about 10%.
The figures for April 2026 are revealing, as the production of sheep and goat milk plummeted to 7.35 million liters, recording a drop of 24.6% compared to the corresponding month of 2025, where production amounted to 9.76 million liters. In addition, the 3% reduction in the cow population exacerbates the problem in the overall production chain. However, unlike sheep and goat milk, despite the killing of about 3,000 cows, cow's milk increased during the same period. Specifically, in April 2026, cow's milk production reached 28.38 million liters, while in April 2025 the production of cow's milk was 27.27 million liters. Therefore, the comparison within the year for cow's milk shows an increase of 4.08%. For 2026, the Ministry of Agriculture expected an increase of about 12% for cow's milk and 15% for sheep and goats.
Furthermore, according to the data of the Intermediate Software of the Department of Agriculture that was implemented in October 2024 (data of the Software from October 2024 until the end of April 2026), the production of sheep and goat milk shows a decrease compared to the corresponding period last year. Specifically, in March 2025 production amounted to 9,077,655.79 liters, while in March 2026 it amounted to 8,346,351.34 liters, recording a decrease of 731,304.45 liters (approximately -8.06%).
It is also noted that, based on the same data, the month with the highest production of sheep and goat milk is usually May, while the following months follow a declining trend, due to exogenous factors, such as high temperatures, water availability/sufficiency, diseases and parasites, etc.
At the center of the discussion are now the two distinct types of halloumi that define the market: traditional sheep and goat and mixed halloumi.
The traditional goat and sheep halloumi is made exclusively from goat's and sheep's milk. Despite efforts to boost production, data show that the availability of the raw material has been irreparably affected by the recent crisis.
Mixed halloumi allows the use of cow's milk, provided that the minimum ratio of sheep and goats laid down in the respective decree is observed.
In an effort to find a mutually acceptable solution, the Minister of Agriculture convened a broad meeting on April 30, 2026 with all stakeholders. No decision was taken at the meeting on the modulation of the milk quota for the production of halloumi PDO. The only decision concerned the implementation of the agreements on the maximum quantity of cow's milk for the production of PDO halloumi, in order to balance the production of cow's milk and sheep and goat's milk. The maximum quantity of cow's milk for cheese-making has been set at 234 tons per year, 19.5 tons per month. It is noted that in April 2026, the amount of cow's milk available for halloumi cheese-making exceeded the maximum amount provided for by 10%. In the meeting attended by cheesemakers, cow farmers, sheep and goat breeders and agricultural organizations, the issue of reducing the available amount of sheep and goat milk was discussed, as well as the impact caused by the outbreak of foot-and-mouth disease on the sector.
Cheesemakers: There are not sufficient quantities of sheep and goat milk. They highlight the inability to comply with the previous decree that provided for a rate of 25% for the period March-July 2026, due to the lack of raw material.
Agricultural organizations: The current time period is not suitable for regulatory interventions. The treatment of the foot-and-mouth crisis, combined with the pre-election period, creates conditions of increased sensitivity.
Cattle breeders: They are following the developments with concern, as the reduction of the halloumi quota directly affects exports. A halt in the upward trend of exports may lead to the loss of important markets.
Sheep and goat farmers: There is a sufficiency of sheep and goat milk. They express their strong concern about the viability of the units after animal killings and call for support for the replenishment of livestock.
The 2029 target is moving away
Despite the assurances of the Ministry of Agriculture that efforts are being made to gradually increase the production of sheep and goat milk, the new retreat to 15% (effective from May 15 to December 31, 2026) raises serious questions.
The spearhead for the industry remains the strategic goal of July 2029, when the transitional period ends and sheep and goat milk should prevail over cow's milk in the production of the PDO product. With the current conditions and the continuous deviations due to emergency crises, this goal now seems to be dangerously far away, threatening the philosophy and authenticity of the national product as it was awarded to the EU and is available with increasing trends in international markets.
The stakeholders had until yesterday to submit their final written positions on the proposal to the Ministry of Commerce. Yesterday, the Minister of Commerce, Michalis Damianos, proceeded to publish the relevant decree in the official gazette of the Republic with effect from May 15.
