Cyprus has slashed the minimum sheep/goat milk requirement for PDO halloumi from 25% to 15%, after a foot-and-mouth outbreak killed tens of thousands of animals and sent sheep/goat milk production plummeting.
The decree, published in the Official Gazette by Commerce Minister Michalis Damianos on Tuesday, takes effect on Friday, May 15, and runs until the end of 2026. It follows an Agriculture Ministry proposal sent urgently to stakeholders for consultation on May 8 via the Commerce Ministry.
The crisis behind the cut
The foot-and-mouth outbreak, which began in February 2026, led to the culling of 40,128 sheep and goats and 2,816 cattle across 109 farming units, pushing overall milk production down by around 10%.
The impact on sheep/goat milk has been severe. Agriculture Department figures show production fell to 7.35 million litres in April 2026, a drop of 24.6% compared with April 2025, when output stood at 9.76 million litres. The decline had already been visible in March, when production came in at 8.35 million litres against 9.08 million litres in March 2025, a fall of around 8%.
Cow’s milk has told a different story. Despite the culling of around 3,000 cattle, cow’s milk production rose 4.08% year-on-year in April 2026, reaching 28.38 million litres against 27.27 million litres in April 2025 — well short of the 12% growth the Agriculture Ministry had projected for the full year. The ministry had also forecast 15% growth in sheep/goat milk production for 2026.
The situation is likely to worsen before it improves. Agriculture Department data show that May is typically the peak month for sheep/goat milk production, with output declining in subsequent months due to factors including high temperatures, water availability, disease, and parasites.
Two types of halloumi, one problem
PDO halloumi comes in two forms: traditional halloumi, made exclusively from sheep and goat milk, and mixed halloumi, which permits the use of cow’s milk provided the minimum sheep/goat ratio set by decree is met. It is the mixed product that the new ratio directly affects.
What stakeholders said
Agriculture Minister convened a broad meeting with all stakeholders on April 30, 2026. No decision was reached on changing the milk quota. The only resolution was to apply an already-agreed cap on the amount of cow’s milk that can be used in PDO halloumi production: 234 tonnes annually, or 19.5 tonnes per month. That cap was already being breached — in April 2026, the quantity of cow’s milk used for halloumi production exceeded the monthly maximum by 10%.
Stakeholders set out sharply differing positions at the meeting:
Cheesemakers said there was insufficient sheep/goat milk available and that they had been unable to comply with the previous 25% requirement covering the March–July 2026 period due to the shortage of raw material.
Agricultural organisations said the current period was not suitable for regulatory intervention, with the foot-and-mouth crisis and the pre-election period combining to create conditions of heightened sensitivity.
Cattle farmers said they were watching developments with concern, warning that any reduction in the halloumi quota directly affects exports and could result in the loss of significant markets.
Sheep/goat farmers said sufficient sheep/goat milk was available. They expressed serious concern about the viability of their farms following the cullings and called for support to replenish their livestock.
Stakeholders had until Tuesday to submit their final written positions to the Commerce Ministry, after which Damianos published the decree.
The 2029 target
The cut raises questions about Cyprus’s ability to meet the terms under which halloumi secured PDO status. The transitional period expires in July 2029, by which point sheep/goat milk must exceed cow’s milk in the composition of the PDO product. With the ratio now reduced to 15% and sheep/goat milk production in sharp decline, the industry’s ability to meet that deadline is increasingly in doubt.
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