Cyprus' Main Industries

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Cyprus' Main Industries The main industry that gives Cyprus a comparative advantage is agriculture because of its climate and its cultivable land. The broad agricultural sector, despite the reduction of its contribution to the Gross Domestic Product and total employment, continues to be a fundamental sector of the Cyprus economy. During the period 1960-1974, the agricultural sector expanded rapidly, but in 1974 it was severely affected by the Turkish invasion and occupation of part of Cyprus. The Turkish forces occupied and displaced non-Turkish population from an area which accounted for 46% of crop production and much higher percentages of citrus (79%), cereals (68%), tobacco (100%), carrots (86%) and green fodders (65%), while 47% of livestock production also emanated from the area. 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

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