Nicosia: 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 totaling pound 1.5 million to address the increased cost of agricultural fuel and fertilisers.
According to Cyprus News Agency, 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, President Christodoulides highlighted that the primary sector is crucial for "the security of the country," especially for an island nation like Cyprus that is geographically distant from mainland Europe.
He pointed out that recent global crises, such as the war in Ukraine, have underscored the importance of food security and the necessity for a robust primary sector. The President also addressed ongoing negotiations in Brussels concerning the Common Agricultural Policy (CAP) within the Multiannual Financial Framework discussions, emphasizing that Cyprus opposes any reduction in CAP funding.
President Christodoulides reiterated the Government's commitment to bolstering the primary sector, enhancing farmers' living standards, and attracting younger generations to agriculture. He cited current challenges, including marketing issues due to foot-and-mouth disease, climate change, drought, extreme weather, crop losses, and increased production costs exacerbated by global conflicts.
The President noted that from 2019 to the present, the broader grain sector has contributed approximately pound 9.5 million, with government support amounting to around pound 35 million. He mentioned that over pound 25 million has been allocated for droughts in 2024 and 2025 from the Agricultural Production Protection and Insurance Fund.
In response to the 2025 dry conditions, support totaling pound 4.5 million has been provided, while the European Commission has approved pound 4.6 million for emergency support in sectors where income loss exceeds established limits, including grain and livestock.
To address rising production costs, a support scheme will provide pound 1 million to eligible farmers for fertilisers and other supplies. Additionally, the Ministry of Agriculture is launching two new Support Schemes, as approved by the European Commission, to mitigate issues related to energy and fertiliser costs and the Middle East crisis. These schemes, costing pound 1.5 million, aim to alleviate the "coloured" agricultural fuel costs and fertiliser price hikes, with completion expected by February 2027.
President Christodoulides also discussed facilitating farmers' access to financing for necessary investments. The framework for bank cooperation has been established, and agreements for new financial products tailored for farmers are soon to be finalized.
Regarding CAP, the President stated that the CAP Strategic Plan 2023-2027 has a total funding of pound 454 million, with the grain sector receiving significant direct payments, amounting to pound 24.5 million in 2025. He announced that a broad consultation for the post-2027 CAP Plan will begin in September, aiming to effectively support producers' income and enhance the primary sector's resilience.
