Breaking news

Modernizing Cypriot Agriculture: Strategic Reforms for a Sustainable Future

by THEFUTURE.TEAM

Overview: Embracing Change in a Challenging Landscape

In an era defined by rapid change and emerging challenges, the Department of Agriculture is spearheading a dynamic modernization of Cypriot agriculture. This initiative aims to enhance the sector’s competitiveness and long-term sustainability, acknowledging agriculture’s pivotal role in the economy, environmental stewardship, and the social fabric of rural communities.

Economic Impact and Structural Shifts

Despite agriculture contributing a modest 1.8% to GDP and engaging 3.4% of the workforce, its influence expands significantly when including the food processing industry—accounting for 6% of GDP, 11% of employment, and 30% of exports. However, current statistics reveal that of the 28,782 agricultural holdings averaging 4.5 hectares per applicant, a staggering 85% are small-scale farms under 5 hectares, covering only 28% of the total land area.

Addressing an Aging Workforce and Evolving Challenges

One of the sector’s most pressing issues is the aging farmer demographic. With an average age of 63 and 76% of farm operators aged over 55, only a trace 0.4% have received comprehensive agricultural training. This workforce challenge is compounded by structural changes that have emerged following Cyprus’s integration into the European Union. The reduction of protectionist measures, abolition of price supports, and a shift towards market-oriented policies have significantly transformed the operational landscape of the primary sector.

Climate Change and Risk Management Initiatives

Cypriot agriculture is increasingly vulnerable to the adverse impacts of climate change, including heavy rainfall, drought, and extreme weather events that diminish both the productivity and quality of crops. In response, the Department has implemented a new Risk Management System funded by national resources. This system, operating as a safety net for producers through targeted programs and the Agricultural Production Protection and Insurance Fund, is designed to mitigate risks and preserve the viability of the sector.

Strategic Direction Through 2029

A comprehensive study on agricultural development has paved the way for a new strategic framework approved on October 2, 2024. Covering the period 2024–2029, the initiative encompasses 11 key actions focused on professionalizing the farming community. Among the priorities are boosting green competitiveness, fostering entrepreneurship, enhancing livestock practices, introducing innovative financing tools, and elevating product quality and certification standards. The strategy also emphasizes vocational training and the institutionalization of farmer support mechanisms.

Enhancing Market Identity and Expanding Opportunities

Efforts are underway to promote high value-added products, including those registered under the Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) schemes. To date, 13 Cypriot products—including Halooumi, Loukoumi Geroskipou, and Pafitiko Loukaniko—have been registered in the EU. Additional measures such as establishing a Cypriot product label and combating unfair commercial practices further reinforce the unique identity and market presence of local products. Innovations such as the e-Kofini price observatory for horticultural produce and new financing initiatives for emerging farmers underscore the sector’s commitment to modernization.

EU Common Agricultural Policy and Financial Support

The Common Agricultural Policy (CAP) remains a cornerstone of support for the sector. The Strategic CAP Plan 2023–2027, with a total budget of €455 million (including €378 million from the EU), allocates significant funds for direct payments, sector-specific interventions, and rural development initiatives. To date, over €119 million has been disbursed, bolstering the sector through direct subsidies and recovery measures designed to train a new generation of agricultural professionals.

The Future of Cypriot Agriculture

At a critical juncture, Cypriot agriculture is poised for transformative change. By integrating national initiatives with European resources, the sector is charting a course toward a more sustainable, competitive, and outward-looking future. These strategic reforms are not only essential for revitalizing the primary sector but are also fundamental to preserving the cultural and economic heritage of rural Cyprus.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

Aretilaw firm
Uol
The Future Forbes Realty Global Properties
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter