Dorita Yiannakou
The continued spread of foot-and-mouth disease has raised serious concern across Cyprus’s agri-food sector and business community, particularly regarding halloumi, the country’s most important agricultural export.
Business organizations told Kathimerini that while halloumi as a finished product is not considered a food safety risk, the situation has become critical for the production of goat and sheep milk because infected animals are being culled.
Authorities stress that Cyprus’s national cheese remains available in international markets because its production process includes heat treatment above 95°C, a temperature that inactivates the foot-and-mouth disease virus. Under European regulations, dairy products that undergo heat treatment are not considered carriers of the virus. So far, no export bans have been imposed for health reasons.
Officials also note that Cyprus has secured agreements with the United Kingdom, Canada, and Australia, all of which accept halloumi as a safe product. Based on current data, exports are continuing without European restrictions and key markets remain open.
At the same time, business groups emphasize that the issue is not regulatory or commercial in terms of bans. The main challenge is production. Foot-and-mouth disease does not threaten the final product but the availability of raw milk.
The culling of goats and sheep reduces the supply of milk, directly affecting the quota required under the PDO (Protected Designation of Origin) framework. According to the Cyprus Employers and Industrialists Federation (OEB), the sector may absorb the impact if losses remain limited. However, if the outbreak spreads further, the risk of a genuine shortage becomes significant.
The business community is also concerned about export contracts and maintaining the product’s presence on foreign retail shelves. The Cyprus Chamber of Commerce and Industry (KEVE) notes that large dairy producers operate under annual agreements with retail chains and supply private-label products with strict quantity commitments. If producers cannot deliver the agreed volumes, retailers may replace halloumi with competing grill-cheese products. Regaining that shelf space could take considerable time and cost.
Industry groups also highlight the timing. The spring and summer months represent the peak consumption season for halloumi in European markets. Any reduction in supply during this period significantly increases commercial risk, since retailers and distributors rely on consistent deliveries. Retail markets rarely tolerate supply gaps. When shortages occur, competing products quickly fill the space, weakening halloumi’s position on store shelves.
Meanwhile, smaller dairies that depend on farms forced to cull their animals are struggling to secure alternative milk supplies. Livestock farmers are losing productive capital, while dairy processors must manage the risk of failing to meet contract obligations. A drop in production could eventually lead to higher prices that consumers will ultimately pay.
Business organizations warn that the situation could become far more serious if animal culling continues and major livestock regions are affected. In that scenario, a significant reduction in the goat and sheep population would sharply limit the availability of raw milk, pushing production close to its limits and testing the sector’s ability to meet existing export commitments.
For now, industry leaders emphasize that the central issue is not export bans but the availability of milk.
