RDP project database
Relocation and Modernisation of a Dairy Processing Unit
This project has improved the competitiveness of a family-owned dairy processing unit in Cyprus through a business expansion operation that involved the construction of new dedicated facilities for processing dairy products.
The family-owned Halloumi cheese factory in Cyprus processes milk into various dairy products which are sold in national (20%) and international (80%) markets. As a result of increasing turnover in recent years, the old dairy unit could not meet the growing demand and the company received RDP support for a business expansion project.
A business plan was developed, including a significant investment project, with the aim of: 1) Increasing production and sales; 2) Increasing exports, and; 3) Improving product quality.
The main components of the investment project included: i) relocating the dairy unit into a modern building in an industrial park; ii) purchasing and installing more modern dairy processing equipment, and; iii) installation modern health equipment and developing new quality management systems. Two applications for EAFRD funding were successfully submitted under RDP measure 123 (adding value to agricultural and forestry products) for a total of 2 100 000 EUR.
Results & Benefits
Direct results of EAFRD investment support have included: a) increased production with turnover increased by 30-40% and supply of dairy products to the Cypriot market increased by 20-25% in 2009-2010; b) new and improved quality management (in accordance with BRC and IFS certification); c) increased exports by 28% in 2009-2010, and; d) increased total annual turnover - from 8 000 000 EUR in 2008 to 9 500 000 EUR in 2009 (the first operating year for the new dairy unit).
Funding from the RDP is an important boost for the Cypriot dairy industry, but careful planning is required. Two lessons from the company's experiences are i) use your funds sensibly - “do not risk too much so that you can pay it back”, and; ii) be well informed about the market and its evolution - “you must be certain about the rising market trends, in order to plan your production safely and assess the needs for increasing your productivity”
Project location and other information
Kypros / Kibris
Total project cost (€)
3 000 000
EAFRD contribution (€)
9 000 (first application) + 1 200 000 (second application)
+357 246 61210 / +357 247 20460
Languages for contact
At a glance
Final beneficiary type
Non-farm or non-forest entreprises
> €500 000
Theme / Measure:
Competitiveness of Agriculture & Forestry
Restructuring, developing physical potential, and promoting innovation
123. Adding value to agricultural and forestry products
Food quality , Agri-food industry, Competitiveness , Milk, Modernisation