The debate in the parliamentary Committee on Finance during the debate on the budget of the Ministry of Agriculture, Rural Development and Environment for 2027 highlighted a number of critical and open fronts. Issues such as halloumi PDO, waste management, the water problem and the situation in Akamas are the big bets that require immediate, catalytic decisions and strict adherence to schedules within 2027.
PDO halloumi remains at the center of a long-standing and deep dispute between sheep and goat farmers on the one hand and cow and cheese farmers on the other. The core of the problem lies in the questioning of the quantitative adequacy of the three types of goat, sheep and cow milk to meet the required quota of the PDO dossier, especially in view of the fact that more than 90% of production is exported.
Despite the extension of the transitional period until July 2029, the timetables for the submission of an official application by cheesemakers for a reduction of the quota from the 51% sheep and goat milk strictly provided for in the file are under suffocating pressure. The conditions, with the increased production of cow's milk compared to sheep and goat's milk, make the amendment a one-way street for cheesemakers, which, however, is expected to cause strong disagreement and reaction from sheep and goat farmers. The Ministry is called upon to manage a delicate balance, as the process of examining an amendment involves national and EU stages of publication and objections that may dangerously delay final approval.
For the Ministry, the timely launch of the procedures towards the amendment of the specifications was set as a key priority, in order to ensure the smooth adaptation of the sector to the requirements of the specification and not to jeopardize exports and not to jeopardize the protection of the halloumi designation as a PDO.
However, the process of examining an amendment request includes publication stages at national and EU level, as well as the possibility to submit objections at both national and EU level, which may significantly delay the time needed to complete the examination process.
Waste Management and "Pay as You Throw"
In the waste sector, Cyprus faces huge challenges and the threat of European fines, as it is still heavily dependent on landfilling, which stands at 63%, when the target for 2035 is below 10%.
The "Pay As You Throw" (PDO) program, despite the proclamations, is marked by long-term delays and objective difficulties in its implementation by the local authorities. The goal remains the effective activation and implementation of the sorting system at source within 2027, with an initial emphasis on promoting recycling and recyclable materials (paper, plastic, aluminium), despite strong criticism from parties for the government's lack of a clear plan to support citizens.
In the Integrated Waste Management Facility of Pentakolo, where the state took over the operation from December 2023, transitional interventions are being promoted, while the overall and final assignment to a new contractor is estimated to be completed in the second half of 2027, with the time of the upgrade projects estimated at 36 months. At the same time, inspections are intensified through the special inspection branch of the Department of Environment.
Projects for independence from rainfall
With water scarcity being the number one threat, the Ministry is paying approximately €230 million. (43% of the total budget) in the water sector, an amount increased by €30 million compared to 2026.
At the heart of the planning is the implementation of a wider program of at least 65 water projects, 15 of which are large-scale, with the aim of decoupling the water supply from erratic rainfall.
With a huge fund of €158 million, to be provided exclusively for the purchase of desalinated water, the government maintains the existing permanent and mobile units in continuous and uninterrupted operation.
Additional projects are also being promoted, such as the new mobile units in Vassiliko and Mazotos, where a dialogue with the local community on compensatory measures is underway, as well as roadmaps for four new permanent units until 2031, despite the pressure for stricter and more binding interim timetables.
Responsibilities in Akamas
The fourth hot topic during the budget discussion was the management of the Akamas National Forest Park and the revision of infrastructure projects.
The situation surrounding the responsibilities for the delays and mistakes remains murky, with the Ministry stating that it expects the completion of the disciplinary investigation by the Legal Service. At the same time, political parties complained that the contractor in charge of the project has submitted financial claims and claims for the delays, which are being examined by the Legal Service instead of the Central Committee for Changes, raising questions about transparency.
At the level of action for 2027, the Ministry is launching the implementation of the revised design with the publication of the tender documents for Phase A of the improvement of the road network within the Park, expected barring any unforeseen circumstances within November 2026, after full compliance of the plans with environmental requirements.
At the same time, the creation of 7 basic visitor service infrastructures, the strengthening of the Park Guard, the establishment of regulations for the protection of biodiversity and the cutting off of irregular accesses are being promoted.
At this stage, specific clarifications were requested from another Government Department, so that the evaluation could be completed and the relevant recommendation could be sent for a final decision by the Tender Council of the General Directorate of Environment, the Ministry of Agriculture, Rural Development and Environment.
Asked to comment on the presence of imported agricultural products in the Cypriot market and the prospects for strengthening domestic production, Mr. Senekis pointed out that "the issue of the increase in production costs also creates costs for the final consumer, as a result of which the channel for the arrival of products from abroad, imported products, is further opened".
As he explained, the effort to support producers against the increased costs is also guided by this, so that there is no further deterioration of the situation in relation to imported products.
The proposed budget of the Ministry of Agriculture amounts to €532 million, increased by €18.7 million. In other words, it shows an increase of about 3.5% compared to 2026. It is a budget that links fiscal responsibility with clear political priorities: 1) Water security, 2) support for the primary sector, 3) protection of the environment and public health and 4) the modernization of state services.
