Breaking news

Hemorrhagic Fever Outbreak Puts Pressure On Cyprus Livestock Sector

Rapid Onset Of A Livestock Emergency

Cyprus’ livestock sector is facing growing pressure following the spread of hemorrhagic fever across several free-range farming areas. Authorities report 11 affected facilities and around 13,000 animals considered at risk in regions including Livadia, Oroklini, Troulloi, and Aradippou.

Estimated compensation costs have reached approximately €4.5 million, covering livestock losses as well as related products such as milk and reproductive material.

Intensified Epidemiological Investigations

Veterinary Services have launched extensive epidemiological investigations aimed at identifying the source and transmission pathways of the outbreak. Law enforcement authorities are also assisting in inquiries related to possible delays in reporting initial cases.

Officials say early notification remains critical for limiting the spread of animal diseases and reducing economic impact on producers.

Strict Emergency Measures Enforced

Following confirmation of the outbreak on February 20 in a cattle unit in Livadia, the government activated its Emergency Action Plan under Regulation 2020/687. Authorities believe the virus may have been circulating earlier in nearby areas.

Key measures include:

  • Checkpoint Controls And Disinfection
    Police and veterinary teams have established control points and disinfection units in affected zones, including Aradippou, Livadia, Keleia, Troulloi, and Oroklini.

  • Movement Restrictions
    Transportation of cattle, sheep, goats, pigs, and related feed is restricted without special authorization.

  • Product Control Measures
    Milk from affected facilities is being removed from the supply chain, while controlled disposal procedures for infected animals are underway.

  • Hunting And Outdoor Activity Restrictions
    Hunting and dog training activities have been suspended in affected areas to reduce environmental transmission risks.

Political Pressure And Industry Concerns

The outbreak has intensified debate within the Parliamentary Committee on Agriculture, where lawmakers reviewed earlier containment measures introduced in late 2025 after initial suspicions of disease activity.

While laboratory tests conducted in nearby zones previously returned negative results, farmers continue to express concern over economic losses and uncertainty. Authorities say inspections and biosecurity controls will remain in place as monitoring continues.

International Veterinary Cooperation And EU Response

Amid the grim scenario, the EU veterinarian team from Brussels (EUVET) offers a global perspective. With the imminent arrival of 10,000 vaccine doses today from a reserve of 500,000 doses sent to occupied areas, and another 10,000 expected next week, the rollout will be managed under the expertise of EUVET, who remains on the island until Friday.

Notably, although only 11 premises have so far reported contamination, early incidents in a cattle farm and two large sheep stations in the Larnaca district had already captured international attention. In light of this outbreak, the European Commission is set to authorize measures, including a decisive culling of animals at affected farms, destruction of animal products, and comprehensive facility disinfection.

Export Challenges And Future Precautions

Following the outbreak, the World Organisation for Animal Health (WOAH) suspended Cyprus’ disease-free status, temporarily affecting exports of susceptible live animals and certain untreated animal products.

EU guidelines require strict controls within designated restriction zones, including movement monitoring, facility sanitation, and regulated handling of animal products. Authorities say dairy products from affected farms must be managed under controlled conditions to ensure safety.

Moving Forward

Additional measures are expected in the coming days, including expanded vaccination efforts and continued surveillance. Officials say coordination between national authorities, veterinary experts, and EU partners will be central to limiting the spread of the disease and stabilizing the livestock sector.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

eCredo
The Future Forbes Realty Global Properties
Uol
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter