By Tassos Yiasemides
The emergence of foot-and-mouth disease cases in Cyprus has brought back into focus one of the most serious risks facing the primary sector and, by extension, the broader economy.
Although foot-and-mouth disease does not affect humans, its economic consequences can prove devastating, particularly in a country where livestock farming constitutes a critical pillar of agricultural production and exports.
Rural Cyprus is not confronting a purely veterinary problem. It faces a multi-layered economic challenge, involving immediate income losses, increased fiscal costs and significant risks to the country’s international trade standing.
Impact on production and income
Foot-and-mouth disease is characterised by high fever, lesions in the mouth and on the feet of animals, and difficulty in feeding and movement. The result is a dramatic fall in milk production and a marked deterioration in the physical condition of animals destined for meat production. In cases of widespread transmission, authorities are compelled to proceed with mass culling to contain the disease.
For livestock farmers, this translates into direct income loss. The loss of a productive animal does not only affect the current season but also the future potential of the herd. Restocking requires time and capital, often involving new borrowing, further undermining the financial viability of farms.
Milk production, a key raw material for Cypriot dairy products, is immediately affected. At a time when feed and energy costs remain high, an outbreak acts as a multiplier of existing pressures.
The significance of the problem becomes even clearer when considering the role of halloumi in the Cypriot economy. Halloumi, registered as a Protected Designation of Origin in the European Union, is one of the country’s most important export products, generating hundreds of millions of euros in annual sales.
Its production relies primarily on sheep and goat milk and, in certain cases, cow’s milk. Any disruption in milk supply has cascading effects on processing, exports and ultimately the trade balance.
In the event of a widespread epidemic, the risk extends beyond reduced output. There is always the possibility of restrictions or stricter inspections imposed by importing countries. Even if products pose no public health threat, a country’s reputation as a safe producer can be shaken. In a globalised market, trust is as important as quality.
The fiscal burden
Managing an outbreak requires the immediate mobilisation of state mechanisms: veterinary inspections, disinfection procedures, quarantine zones, movement controls and reinforced border surveillance. All of these measures carry financial costs.
At the same time, the state is obliged to compensate farmers for animals that are mandatorily culled. While compensation is necessary to prevent the collapse of holdings, it places additional strain on the public budget. In a period of fiscal discipline, such extraordinary expenditures limit the capacity for investment in other sectors.
Rebuilding livestock numbers requires financial instruments, subsidies and potentially access to European funds. Delays in restoring production may create longer-term market gaps.
The primary sector does not operate in isolation. Livestock farming supports a broad network of activities, including feed producers, transporters, slaughterhouses, dairies and export companies.
Restrictions on the movement of animals and products affect the entire supply chain. Delays, higher transport costs and uncertainty regarding deliveries create suffocating conditions for small and medium-sized enterprises operating on narrow margins.
If the crisis persists, price increases in basic meat and dairy products on the domestic market cannot be ruled out. In a society already facing inflationary pressures, such developments would burden households further and deepen social inequalities.
Rural and demographic consequences
Livestock farming is a primary source of income in many rural areas of Cyprus. A contraction in livestock numbers and prolonged economic uncertainty could force small units without adequate reserves to shut down.
Job losses in rural areas have both economic and demographic dimensions. Depopulation of the countryside, migration of young people to urban centres and the ageing of the agricultural population aggravate an already existing sustainability problem.
Europe has experienced severe foot-and-mouth crises in the past, most notably the 2001 outbreak in the United Kingdom, which cost billions of pounds and led to the culling of millions of animals. Those events demonstrated how swiftly an animal disease can escalate into a national economic crisis.
For Cyprus, the lesson is clear: prevention is far less costly than recovery. Strengthening biosecurity measures, strict adherence to farm protocols and continuous training of producers constitute an investment rather than an expense.
Building resilience
The current situation highlights the need for a long-term resilience strategy for the primary sector. This includes the creation of an emergency fund for animal diseases, reinforcement of veterinary services with personnel and technological tools, digital traceability of livestock for faster case detection and incentives for insurance coverage of farms.
At the same time, active diplomatic management is required to maintain the confidence of trading partners. Transparency and timely communication with international markets reduce the risk of excessive or unjustified restrictions.