The importance of strengthening the primary sector, as a matter of food security for Cyprus, was emphasised by President, Nikos Christodoulides, who assured grain producers that the Government will continue to practically support the sector. He also announced two new schemes totalling 1.5 million euro to address the increased cost of agricultural fuel and fertilisers.
Speaking at a dinner hosted by the Board of Directors of the Pancyprian Organisation of Grain Producers in the industrial area of Aradippou, in Larnaca district, on Monday evening, President Christodoulides said that the primary sector has to do with “the security of the country,” especially for an island nation like Cyprus, which is far from the centre of Europe.
He noted that the crises of recent years, particularly the consequences of the war in Ukraine, have highlighted the importance of food security and the need for a strong primary sector.
The President also referred to the negotiations in Brussels regarding the Common Agricultural Policy, within the discussions for the Multiannual Financial Framework, noting that there are states that wish to reduce funding for the CAP, a position with which, he said, Cyprus disagrees.
He emphasised that the Government’s goal is to strengthen the primary sector, upgrade the living standards of farmers, and attract the younger generation to the agricultural sector.
He pointed out that this year has also been accompanied by marketing problems due to foot-and-mouth disease, while difficulties are compounded by climate change, drought, extreme weather events, crop losses, and the high cost of production, which has been further burdened by the war in Ukraine and the crisis in the Middle East.
President Christodoulides also said that from 2019 to the present, the broader grain sector has contributed approximately 9.5 million euro, while the Government has granted support totalling approximately 35 million euro.
Only for the droughts of 2024 and 2025, he added, amounts exceeding 25 million euros have been paid from the Agricultural Production Protection and Insurance Fund.
At the same time, to address the dry conditions of 2025 in the grain and livestock plant sector, support totaling 4.5 million euros has been provided, he noted.
The President also stated that, as part of the emergency support for agricultural sectors for the conditions of 2025, an amount of 4.6 million euros has been approved by the European Commission, which also concerns Cyprus, for sectors where income loss beyond the established limit has been documented. Among the sectors proposed for support are grain, as well as livestock farmers due to the increase in feed costs.
Regarding the increased production costs, the President of the Republic said that “through a support scheme, a total support of one million euros will be provided to eligible farmers to cover part of the costs of purchasing fertilisers, pesticides, and other agricultural supplies, with additional support also for grain producers.”
At the same time, he announced that the Ministry of Agriculture is preparing two new Support Schemes for farmers and agricultural businesses, following the European Commission’s decision for emergency financial support due to problems related to energy and fertiliser costs and the crisis in the Middle East.
The two schemes, with a total cost of 1.5 million euro, are expected to be implemented and completed by February 2027 and will address the increased cost of “coloured” agricultural fuel and support farmers for the increased prices of fertilisers.
President Christodoulides also referred to facilitating farmers’ access to financing so that they can proceed with necessary investments.
As he said, after discussions with banks through the Association of Banks of Cyprus, the framework for operation and cooperation has been completed and approved by the Council of Ministers, while two applications for participation from banking institutions have already been submitted. In the coming period, the relevant agreements are expected to be finalised and signed so that the new financial products will be available specifically to farmers.
Regarding the Common Agricultural Policy, the President pointed out that the CAP Strategic Plan 2023-2027 has a total funding of 454 million euros, while the grain cultivation sector receives the largest percentage of direct payments, which for 2025 amounted to approximately 24.5 million euros.
At the same time, he noted, “from September, the Ministry of Agriculture will start a broad consultation for the preparation of the new Common Agricultural Policy Plan for the period after 2027, aiming at effectively supporting producers’ income and strengthening the resilience of the primary sector.”