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Halloumi Controversy: Cattle Farmers Boycott Support Measures Dialogue

A significant dispute has arisen in Cyprus regarding support measures for the dairy farming sector, particularly concerning the production of halloumi cheese. Recently, cattle farmers boycotted a scheduled dialogue aimed at discussing these support measures, reflecting deepening tensions between the farmers and the government. The farmers’ absence from the discussions signals their dissatisfaction with the proposed plans, which they believe are insufficient to address the industry’s challenges.

Government’s Stance and Farmers’ Demands

The government has been working on implementing various support measures to aid the struggling dairy sector. These measures aim to alleviate the financial burdens faced by cattle farmers and ensure the sustainability of halloumi production, a key economic and cultural asset for Cyprus. However, the farmers argue that the current proposals do not adequately address the critical issues affecting their operations, such as rising production costs and market pressures.

Historical Context and Economic Impact

Halloumi cheese, a traditional Cypriot product, has gained significant international recognition and demand. The Protected Designation of Origin (PDO) status granted by the European Union has further boosted its market value. Despite this success, dairy farmers have faced numerous challenges, including fluctuating milk prices, increased feed costs, and competition from imported cheese products.

Farmers’ Concerns

Cattle farmers have been vocal about their need for more substantial support. Their concerns include:

  1. Financial Sustainability: Farmers are seeking measures that provide immediate financial relief and long-term stability.
  2. Market Protection: Ensuring fair competition and preventing market saturation with cheaper, non-PDO-compliant halloumi.
  3. Cost Management: Addressing the rising costs of feed, veterinary services, and other essential inputs.

The Path Forward

The government’s efforts to engage in dialogue with the farmers indicate a willingness to find a collaborative solution. However, the boycott highlights the urgency for more effective and comprehensive strategies that genuinely address the farmers’ grievances. Both parties must work together to safeguard the future of halloumi production, which remains a vital part of Cyprus’s heritage and economy.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

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.

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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