Despite the concentration of population in the less productive part of the island, it was possible through concerted efforts and heavy investment in land improvement and irrigation to reactivate the agricultural sector and to reach the pre-1975 production levels. Nevertheless, the occupation of a great part of Cyprus is still causing problems in the agricultural sector, particularly with respect to the difficulties faced by displaced farmers, the shortages of fodders, the rational development of water resources, the spread of plant and animal diseases and many others.
Despite the blows incurred by the Turkish invasion, the broad agricultural sector contributed, in 2001, at current prices, some £210,2 million or about 3,6% to GDP and employed approximately 23,4 thousand persons or 7,1% of the total economically active population. Agricultural exports (raw and processed) reached 71,8 million, constituting 30,7,0% of total domestic exports, compared to £62,6 million or 28% of total domestic exports in 2000.
Cyprus agriculture may be divided into two major subsectors, namely crop production and livestock production, which, in 2001, contributed 63,8% and 28% respectively to the value added of the broad agricultural sector. The contribution of the other sub-sectors was as follows: Ancillary production (milk and grape products processed on-farm) about 4,6%, forestry 0,7% and others 2,1%.
Development policy aims at restructuring and upgrading the agricultural sector in order to be able to successfully cope with the conditions prevailing in the European Union and international competition and for exploitation of the opportunities created by European Union orientation and the General Agreement on Tariffs and Trade (GATT).
Some state that it is wrong for a country to concentrate all the recourses in only one industry because recourses can be used efficiently and effectively in other industries as well.
Beside the agricultural sector Cyprus’ manufacturing and tourism industry are also profitable.
