Water shortages, the halloumi PDO dispute, waste management and the Akamas National Forest Park were the main issues raised when the House Finance Committee examined the Ministry of Agriculture, Rural Development and Environment’s 532-million-euro budget for 2027.
The budget is up 18.7 million euros, or about 3.5 per cent, on 2026. Its four priorities are water security, support for the primary sector, protection of the environment and public health, and modernising state services.
Water
The ministry has allocated about 230 million euros to water, 43 per cent of its total budget and 30 million euros more than in 2026. A programme of at least 65 water projects, 15 of them large-scale, aims to make the water supply independent of erratic rainfall.
Some 158 million euros is earmarked solely for buying desalinated water, with existing permanent and mobile units kept running continuously. New mobile units are planned at Vasiliko and Mazotos, where talks with the local community on compensatory measures are under way. Roadmaps are also being drawn up for four new permanent units by 2031, despite pressure for stricter and more binding interim deadlines.
Halloumi
Halloumi’s protected designation of origin (PDO) remains at the centre of a long-running dispute between sheep and goat farmers on one side and cattle farmers and cheesemakers on the other. At its core is whether there is enough sheep’s, goat’s and cow’s milk to meet the PDO specification, particularly as more than 90 per cent of production is exported.
The transitional period has been extended to July 2029, but time is running short for cheesemakers to submit a formal application to lower the 51 per cent sheep and goat milk requirement. Higher output of cow’s milk relative to sheep and goat milk leaves cheesemakers with little choice but to seek an amendment.
That is expected to meet strong opposition from sheep and goat farmers.
The ministry has made starting the amendment process early a key priority, so the sector can adapt without putting exports or halloumi’s PDO protection at risk. The process, however, involves publication stages and the possibility of objections at both national and EU level, which could significantly delay final approval.
Waste
Cyprus faces major challenges on waste and the threat of EU fines. It still sends 63 per cent of its waste to landfill, against a 2035 target of below 10 per cent.
The ‘Pay As You Throw’ scheme has been dogged by long-running delays and genuine difficulties for local authorities in implementing it. The aim is to get sorting at source working properly in 2027, starting with recycling of paper, plastic and aluminium. Parties have strongly criticised the government for lacking a clear plan to support the public.
At the Pentakomo integrated waste management facility, which the state has run since December 2023, transitional measures are under way. A new contractor is expected to be appointed in the second half of 2027, with upgrade works estimated to take 36 months. Inspections by the Environment Department’s dedicated inspections branch are also being stepped up.
Akamas
Responsibility for delays and errors in infrastructure projects at the park remains unclear. The ministry said it was awaiting the outcome of a disciplinary investigation by the Law Office of the Republic. Political parties alleged that the contractor had submitted financial claims over the delays, and that these were being examined by the Law Office and not by the Central Changes Committee, which they said raised questions of transparency.
For 2027, the ministry is pressing ahead with the revised plans. Tender documents for the first phase of improvements to the park’s road network are expected to be published in November 2026, barring unforeseen problems, after the designs were brought fully into line with environmental requirements. Clarifications have also been requested from another government department so that an evaluation can be completed and a recommendation sent to the tender board of the General Directorate of the Environment for a final decision.
Plans also include seven main visitor facilities, more park rangers, regulations to protect biodiversity and closing off unauthorised access points.
Imports
Asked about imported agricultural produce on the Cypriot market and the prospects for boosting local production, Agriculture Minister Christos Senekis said “rising production costs also drive up costs for consumers”. This, he said, further opens the way for imports. Supporting producers against higher costs is aimed partly at preventing the situation from getting worse, he added.
