CYPRUS

Executive Summary

Cyprus is situated in the north–eastern part of the Mediterranean, on the crossroads between Europe, Africa and Asia. Despite its small size Cyprus has a diversified crop production and a rich flora, consisting of 1907 species, subspecies and flowering plants, of which 141 are endemic.

The agricultural sector is a vital sector of the Cyprus economy in terms of its contribution to the Gross Domestic Product (GDP) and the employment of the economically active population. Agricultural exports constitute a significant proportion of total domestic exports.

The agricultural sector has expanded significantly in the period 1960 (independence of Cyprus according to the Zurich-London Treaty) – 1974 (Turkish invasion in Cyprus). Turkish military forces have occupied the more productive part of the island since 1974. The displaced farmers moved to the less productive part of the island and were faced with many difficulties caused by the invasion. The new situation seriously affected the broad agricultural sector. Nevertheless, thanks to concerted efforts and heavy investment in land improvement and irrigation, the sector was reactivated and approached the pre-1974 levels of production.

Shortage of water resources has been a major problem affecting all households and the agricultural sector in Cyprus throughout its long history. In order to address this problem, a long term Water Management and Water Development Policy is being implemented since the establishment of the Independent Republic of Cyprus in 1960. In the framework of this policy:

• Dams for water storage and recharge purposes have been constructed and large irrigation projects have been implemented.
• Two factories for the desalination of sea water have been constructed to ensure continuous supply of drinking water to all households.
• The recycling of water is promoted through treatment and reuse of treated domestic effluents and industrial wastes for irrigation purposes.

The development policy of Cyprus aims at restructuring and upgrading the agricultural sector. An integrated plan for restructuring the agricultural sector is implemented by the Department of Agriculture of the Ministry of Agriculture, Natural Resources and Environment.

The plan provides incentives to uproot unproductive fruit trees and plant other more promising crops, including olive trees, herbs, flowers and vegetables. A number of projects including organic farming, integrated production systems etc. aim at promoting suitable and environmentally friendly production methods.

The production and exploitation of industrial crops other than herbs, is small in Cyprus and limited to tobacco and sesame. Currently there is an increasing activity in the production and exploitation of aromatic crops, falling in the sector of crops with special uses. The interest and activity both at the private and the public levels are growing, along with the growing demand for the local and overseas markets.

The other three market sectors of non-food plants, i.e. starch, natural fibres and vegetable oils, are not developed in Cyprus. However, the industrial exploitation of crops falling into these sectors is possible in the future, to the extent that feasibility is ensured under local conditions and in the context of future developments and new trends.

Some of the principal food crops growing in Cyprus, for example cereals (wheat and barley) and potatoes and probably other crops, may have combined exploitation in the future, provided that the cost efficiency in the chain from the production to the market; market demands; future approaches of the Common Agricultural Policy with respect to industrial crops; incentives provided at national and European levels and the flow of relevant information will be adequate to raise the interest of the producers, the industry and the traders.

The same applies to some trees which thrive in Cyprus and which have the potential for industrial exploitation such as carob trees and eucalyptus.

The cultivation of aromatic plants is an increasing activity in Cyprus. The herbs are used as spices and herbal teas and for the production of essential oils, cosmetics and pharmaceuticals.

The local and overseas herb market is growing. There is a growing demand for the export of some aromatic plants, especially fresh plants, and an increasing interest in the production and export of herbs with medicinal properties.


Many aromatic plants are collected from the wild. This situation evokes environmental concerns, which grow along with the growing market for herbs that puts an additional strain on resources. Strengthening the cultivation of these plants and controlling their collection from the wild may address environmental concerns.

The cultivation of herbs is in line with the developmental and environmental policies of Cyprus. The Ministry of Agriculture, Natural Resources and Environment, in its effort to stimulate and contribute to the promotion and development of the cultivation of herbs, provides incentives to the private sector and implements research aiming to improve production practices and know-how.

Incentives are provided to farmers, in the form of subsidisation of interest on loans for the implementation of improved methodologies and techniques in the cultivation, harvesting and processing of aromatic plants.

Besides subsidization in order to increase the interest of the private sector for capital investment, the Ministry of Agriculture, Natural Resources and Environment, is implementing programmes and research, aiming to produce and transfer to the private sector improved knowledge, practices and technology. These programmes are carried out by two of the Departments of the Ministry, namely, the Department of Agriculture and the Agricultural Research Institute (ARI). The production and processing of industrial crops as well as the combined food and non-food use of certain plants, through effective exploitation of new developments in the island (more water availability, reuse of treated waste water etc) and the market demand, may open new opportunities in the future, enabling the addressing of environmental problems and satisfying socio-economic needs.

In the framework of the Research Promotion Foundation and the recently established RISC Project, a set up will be created to disseminate information on research, innovation and technological developments. In this context, they may play an important role in disseminating information and promoting know–how and networking in the field of industrial exploitation of plants.

The Research Promotion Foundation (RPF) was founded in 1996 by the Government of Cyprus, in order to promote scientific and technological research in the island. The RPF is participating in a number of projects, submitted and selected for funding by the European Commission within the framework of FP5 and FP6. The most important of them is the RISC Project (Regional Innovation Strategy for Cyprus).