Mediterranean countries. Quite a few banking coops are in business of
consciously supporting farming activities and farmers’ needs through the
provision of preferential credit. Furthermore, the actual suppliers of farming
inputs are some of these banking coops that happen to be among the largest
financial institutions. In fact, one banking coop is substantially larger than
most of the commercial banks.
Cyprus has a small manufacturing base and inevitably imports most
of the inputs it uses for the production of final products. The same holds
for its agricultural/farming sector. The addition of the transport cost
inevitably means that most of these inputs are available at substantially
higher prices to local farmers thus impairing the final cost calculus and
eventually, their competitiveness.
4.2. Food processing sectors
Food processing in Cyprus is a ‘has been’ sector aside from highly
specialized niche markets such as processed organic tea and traditional
processed products (i.e. sweets, processed syrupy fruits, grape based
sweets, traditional sausages etc). What remains today are tainted operations
of once strong and competitive exports of products that enjoyed the status
of core competences. The processing of grape fruits and the manufacturing
of fruit juices and other products was one of the most important processing
activities of agricultural products. However, in recent years, a diminishing
course has been observed due mainly to the lack of competitiveness in the
sector. On the same declining path we also find the exports of products
from the grape fruit processing. The processing of oranges with their
conversion, mainly, to juices is continuing at the same approximate levels
whereas the same activity in lemons (i.e. lemon juice) has witnessed a major
reduction. Grapes converted to wine are basically the activity of four large
wine industries that have been operating for over one hundred years. Also
there are a few small ‘boutique’ wineries that have sprung up in the last
decade or so driven by national support programs. In addition, pure alcohol
and spirit are also in production. The dairy industry provides the national
brand of ‘halloumi’ cheese, which is made of sheep and/or goat milk in
mixture with cow milk. A further long list of additional local cheeses follows
as important mainstay in the food processing industry. There is no local
production though of butter and powder milk.
4.3. Food consumption
Food consumption patterns in Cyprus are typical of those found in a
Mediterranean country. Fresh fruits, vegetables and olive oil form a basis of
dietary habits that the Self Sufficiency Rates (SSR) exceeds local needs. Data
shown are for 1990, 1995 and 2001, because data beyond these years are
not available. The information is presented in the form of tables for better
comprehension (Table 7, 8 and 9, Appendix). According to these tables
Cyprus is self sufficient in potatoes, tomatoes and citrus. It is worth
mentioning that the SSR in potatoes and citrus exceeds twice the actual
needs (225% and 214% respectively), while in tomatoes is 100%.
5. Trade in Agri- Food Products
10