President Nikos Christodoulides has underlined the importance of strengthening the primary sector as a matter of food security for Cyprus, assuring grain producers that the Government will continue to support the sector in practice. He also announced two new projects totaling €1.5m to address the increased cost of agricultural oil and fertilisers.
Speaking at the dinner hosted by the Board of Directors of the Pancyprian Grain Producers Organisation, in the industrial area of Aradippou, on the evening of 7 September, President Christodoulides said that the primary sector "is related to the security of the country," especially for an island nation like Cyprus, which is located far from the centre of Europe.
As he said, the crises of recent years, and especially the consequences of the war in Ukraine, demonstrated the importance of food security and the existence of a strong primary sector.
The President also referred to the negotiations in Brussels on the Common Agricultural Policy, in the context of the discussions on the Multiannual Financial Framework, noting that there are states that wish to reduce funds for the CAP, a position with which, as he said, Cyprus disagrees.
He stressed that the Government's goal is to strengthen the primary sector, upgrade the living standards of farmers and attract the new generation to the agricultural sector.
The President of the Republic also made special reference to the viticulture sector, recalling that in 1990-1991 producers were asked to uproot their vines and today, 36 years later, efforts are being made to find vines in order to strengthen the sector again. As he said, this should serve as a lesson for all branches of the primary sector.
At the same time, he thanked the former Minister of Agriculture Maria Panayiotou, stating that she had done an excellent job in relation to the primary sector and that she constantly attempted, through the Council of Ministers, to promote the sector's requests.
Regarding this year, the President described production as particularly productive compared to previous years, a fact that, as he said, "creates optimism among producers after successive periods of drought."
Marketing problems
However, he noted that this year was also accompanied by marketing problems due to foot-and-mouth disease, while climate change, drought, extreme weather events, crop losses and high production costs were added to the difficulties, which were further burdened by the war in Ukraine and the crisis in the Middle East.
President Christodoulides reported that from 2019 to date, the broader grain sector has paid contributions of approximately €9.5 million, while the Government has granted aid totaling approximately €35 million.
For the droughts of 2024 and 2025 alone, he added, amounts exceeding €25 million were paid from the Agricultural Production Protection and Insurance Fund.
At the same time, to address the dry and hot conditions of 2025 in the grain and fodder crops sector, aid totaling €4.5 million was paid.
The President also mentioned that, within the framework of the emergency support for agricultural sectors for the conditions of 2025, an amount of €4.6 million has been approved by the European Commission, which also concerns Cyprus, for sectors in which a loss of income beyond the specified limit has been documented. Among the sectors proposed for support are cereals, as well as livestock sectors due to the increase in the cost of animal feed.
In relation to the increased production costs, the President of the Republic said that "through an aid plan, total support of one million euros will be granted to eligible farmers to cover part of the cost of purchasing fertilisers, pesticides and other agricultural supplies, with additional support for grain producers."
At the same time, he announced that the Ministry of Agriculture is preparing two new Support Plans for farmers and agricultural businesses, following the European Commission's decision for emergency financial support due to problems related to the cost of energy and fertilisers and the crisis in the Middle East.
The two projects, with a total cost of €1.5 million, are expected to be implemented and completed by February 2027 and will concern addressing the increased cost of "coloured" agricultural oil and supporting farmers for increased fertiliser prices.
Necessary investments
President Christodoulides also referred to facilitating farmers' access to financing, so that they can proceed with the necessary investments.
As he said, following discussions with the banks through the Cyprus Banks Association, the framework for operation and cooperation has been completed and approved by the Council of Ministers, while two applications for participation have already been submitted by banking institutions. In the coming period, the relevant agreements are expected to be finalised and signed, so that the new financial products will be available specifically to farmers.
Regarding the Common Agricultural Policy, the President stated that the CAP Strategic Plan 2023-2027 has total funding of €454 million, while the grain sector receives the largest percentage of direct payments, which for 2025 amounted to approximately €24.5 million.
At the same time, he noted, "from September the Ministry of Agriculture will begin a broad consultation for the preparation of the new Common Agricultural Policy Plan for the period after 2027, with the aim of effectively supporting producers' income and strengthening the resilience of the primary sector."
President Christodoulides also referred to the issue of grain stocks, saying that he is aware that there is an issue this year.
As he mentioned, he is traveling to Egypt today, while within the week he will welcome the President of Israel to Cyprus. He added that there may also be needs in Jordan and that he is expecting the specific data he has requested by the morning, so that the coverage of this specific production can proceed.
In conclusion, President Christodoulides called on grain producers to continue to guide the Government, emphasising that they know better than anyone how the State should act to further strengthen the primary sector.
(Source: CNA)
