Cypriot agriculture is entering a trajectory of significant economic upgrading through the implementation of the Strategy for the Development of the Primary Sector (2024–2029). According to the official data of a scientific study by the Centre for Economic Research (KOE) of the University of Cyprus, the total investment budget of €106.2 million is expected to generate a total economic output of €138.6 million, to contribute directly €70.8 million in the country's GDP and lead to the creation of about 1,370 new jobs.
The exceptional efficiency of these interventions is clearly reflected in the individual indicators, as per €1 million. of investment is generated €1.30 million. economic Production, GDP is strengthened by €0.67 million. and 13 new jobs are created. This fact highlights the dynamics of the multiplier effects of agricultural investment.
The benefits extend far beyond the narrow agricultural sector, stimulating the construction sector, manufacturing, financial services, as well as knowledge-intensive sectors such as research and scientific support.
Two years after the launch of the Strategy, progress is considered very satisfactory. Of the 11 actions, totalling €109.3 million, two have already been fully completed, seven are in the process of being implemented and the remaining two are progressing normally with a completion horizon of 2029. These interventions have already begun to improve the daily lives of producers, laying solid foundations for the future.
Adaptation of Cypriot agriculture to climate change
At the same time, the Council of Ministers has provided for the preparation of a specialized study for the adaptation of Cypriot agriculture to the new climatic data, as Cyprus is the EU member state with the most severe water scarcity. Without measures, production is threatened with a reduction of 15% to 30% by 2050, which translates into annual losses of €97 million. to €194 million.
The Ministry of Agriculture, Rural Development and Environment (YGAAP), in collaboration with the Centre for Economic Research (KOE) of the University of Cyprus, launched in May 2026 a new 9-month study entitled "Climate Change and the Agricultural Sector in Cyprus: Impact Assessment and Adaptation Measures". The analysis will focus on calculating costs, restructuring crops and formulating effective measures that will shield the resilience and competitiveness of Cypriot farmers.
Recognizing that food security is the foundation of social cohesion and stability, the OJAP is promoting within 2026 the preparation of a Ten-Year National Action Plan. The aim is to shield the country against extreme conditions of disruption of international supply chains, to ensure self-sufficiency and at the same time to strengthen Cyprus' export potential.
Main Objectives of the National Plan:
• Definition of food security indicators.
• Forecasting the needs in productive resources and prioritizing their utilization based on food security needs indicators and models.
• Proposal of food security management policies while maintaining and enhancing competitiveness in international markets.
Overall, the Strategy combines economic efficiency with long-term social and environmental goals. The successful completion of the projects within 2026 and the full development of the plan by 2029 are expected to transform the primary sector into a modern, resilient and climate-adapted development pillar for Cyprus.
Maria Panayiotou: The primary sector is changing Cyprus. Every €1 million investment brings 13 new positions
The upgrading and modernization of the primary sector is a top strategic priority for the Government and one of the most powerful levers for achieving sustainable development in the Cypriot countryside and our economy in general, says the Minister of Agriculture Maria Panayiotou.
The results, he notes, of the recent scientific study by the Centre for Economic Research of the University of Cyprus confirm in the clearest way the correctness of our policy. The Primary Sector Development Strategy (2024–2029) is not just an investment program, but a real financial injection for our country. With a budget of €106.2 million, we achieve the creation of a total economic output of €138.6 million, we immediately boost the country's GDP by €70.8 million and, most importantly, we are creating around 1,370 new, quality jobs.
"The fact that every one million euros we invest in the agricultural sector returns €1.30 million. in the economy and creates 13 new jobs, proves the enormous multiplier power of our agriculture. These benefits are directly diffused to construction, manufacturing, services and research, proving that the support of the farmer is the support of the entire Cypriot society", underlines the Minister of Agriculture.
Two years after the start of the implementation of the Strategy, the progress of the projects is completely satisfactory, with the vast majority of actions already on track for implementation or completion, gradually changing the daily lives of our producers.
"As the member state of the European Union with the most severe water shortage, we cannot be complacent. We are well aware that climate change directly threatens the income of our farmers and our production. For this reason, in addition to the existing measures, we started a new, specialized 9-month study in collaboration with the University of Cyprus in May, with the aim of fully assessing the impact and taking specific measures for the adaptation and restructuring of crops. Our goal is to prevent annual losses that could reach up to €194 million. by 2050," he notes.
At the same time, he underlines, we are shielding our country against any international crises and supply chain disruptions. "Within 2026, our Ministry is proceeding with the preparation of a Ten-Year National Action Plan for Food Security. With clear indicators and rational management of our productive resources, we ensure the self-sufficiency of Cyprus, while maintaining the high competitiveness of our products in international markets."
Concluding, the Minister assures the agricultural world and all Cypriot citizens that the Government continues to work methodically so that the primary sector of Cyprus becomes a modern, green, resilient and climate-adapted pillar of prosperity for the future of our country.
