Cyprus shifts to productivity-based aid to boost halloumi milk production

The government of Cyprus is changing its strategy to increase the supply of sheep and goat milk used in making halloumi cheese. This comes as demand for the protected designation of origin (PDO) halloumi continues to rise.

As reported by Philenews, the agriculture advisory committee met in Nicosia on Monday, under the chairmanship of Agriculture Minister Maria Panayiotou. All farmers’ unions were present. The committee approved a set of targeted support measures, focusing on boosting the productivity of livestock farms.

The biggest change is the end of the head subsidy, which gave farmers money for each animal. Instead, support will now depend on how much milk a farm produces. It is the first time this method is being used in Cyprus.

The aim is to increase the availability of sheep and goat milk for PDO halloumi, rewarding farms that meet the rising demand. For 2025, farms producing at least 230 litres of milk per female animal per year will receive €19 per animal, up from €9. Farms producing between 115 and 229 litres will receive €5 per animal, but only for 2025.

The new plan includes a three-year roadmap. Farms will need to reach 250 litres per animal by 2026, and 300 litres by 2027 to remain eligible for the higher subsidy. The scheme has an annual budget of €4 million, giving farmers time to plan investments for the long term. For the first time, subsidies will also be linked to digital records of milk output. A special software system will track production to ensure full transparency. Only farms using this system and supplying milk to approved dairies will qualify for funding.

Minister Panayiotou and the farming unions urged livestock producers to improve their productivity and modernise their farms. They also encouraged them to make use of existing investment programmes aimed at helping farms become more efficient and sustainable.