Agriculture Minister Announces New Decree On PDO Halloumi Milk Quota

In a significant policy shift, Cyprus’ Agriculture Minister Maria Panayiotou announced a new decree adjusting the milk quotas to produce Halloumi with Protected Designation of Origin (PDO) status. This decree, effective from February 2025, aims to bolster the authenticity and market strength of Cyprus’ primary export product by increasing the goat and sheep milk content from 25% to 30% in the Halloumi mixture.

Addressing Seasonal Variability and Production Standards

The decree marks a pivotal change in the agricultural landscape, reducing seasonality from six to five months and setting an annual average quota of 23% for goat and sheep milk, up from the previous 18%. This adjustment benefits both seasonal and year-round goat and sheep farmers, providing a more stable production environment and aligning with European Union environmental commitments by limiting cow milk usage in Halloumi production.

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Technological Integration for Enhanced Monitoring

The introduction of advanced software for tracking goat and sheep milk, slated for October 2024, signifies a forward-looking approach. This system will gather critical data to inform future quota decisions, ensuring that the decree is data-driven and responsive to production realities.

Financial Incentives and Infrastructure Development

The government has introduced financial measures to support the agricultural sector in tandem with the quota adjustments. These include targeted incentives for increasing goat and sheep milk production, infrastructure improvements, genetic enhancement, and the expansion of production units. Such initiatives are expected to modernise the industry, making it more resilient and competitive.

Strategic Goals and Long-Term Vision

Minister Panayiotou emphasized the decree’s alignment with the broader goals of sustaining PDO Halloumi’s status and ensuring its market strength. The five-year transitional period granted by the European Commission, ending in 2029, allows Cyprus to gradually meet the EU Regulation 2021/591 requirements, which mandate a minimum of 51% goat and sheep milk in Halloumi production.

By actively engaging with stakeholders and implementing these comprehensive measures, Cyprus is set to reinforce its position in the global Halloumi market. This decree is a strategic move towards balancing traditional practices with modern demands, ensuring the long-term viability of an iconic Cypriot product.

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Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

by THEFUTURE.TEAM

February 13, 2026

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

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Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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