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.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

Aretilaw firm
eCredo
The Future Forbes Realty Global Properties
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter