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Large variety
of vegetables
Although agriculture is no longer the backbone of the Cyprus economy, careful water management, the adoption of more modern methods of farming, an increased emphasis on the earliness of production, by which Cyprus has comparative advantages, and on marketing, and the opportunity of a larger market as resultstrom the Cyprus-European Union relations, will ensure that it retains an important position. Apart from providing valuable foreign exchange, the sector employs 12,5% of the labour force and provides materials for local industry. It contributes 5,5 % to GDP. The agricultural sector spans a diverse range of activities including animal husbandry, forestry, fishing and crop production with potatoes, other vegetables, citrus, grapes and cereals being the main crop products.

The diversity of agricultural production reflects the wide range of soils and unique micro-climates in Cyprus which allow for the cultivation of strawberries, cherries, apricots and kiwis, as well as subtropical varieties such as avocados and bananas.

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New fruit varieties
do well in Cyprus.
A gricultural exports are seasonally concentrated with citrus products making their way to Europe mainly in the winter, and white seedless and black grapes in demand in the summer. In winter and early spring, substantial volumes of new potatoes, carrots and beetroot are exported. Recent years have also seen a major expansion of out-of-season salads and vegetable exports to the European Union with items such as okra and tomatoes doing especially well.

The Cyprus-EC Customs Union Agreement has boosted the island's exports of fresh fruits and vegetables. Total agricultural exports to European Union countries reached C£60 m by 1995. Thefirst ten-year period of the Agreement provides for the gradual abolition of duties and an increase in quotas for major items such as grapes and potatoes.

Refrence prices, one of the main forms of European Union protection in fruit and vegetables, were also adjusted in favour of Cyprus for oranges, lemons and table grapes. At the same time, European Union financial aid and Government incentives - ranging from low interest loans for greenhouse construction to investment expenditure for the promotion of mechanisation - helped Cyprus agriculture to improve and also enabled it to exploit market opportunities. Still much more needs to be done.

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Potato-picking
A lso land consolidation proved beneficial for agriculture. Because of a complex inheritance system under which family plots were continually sub divided, at Independence many of Cyprus' farms were uneconomic. By 1974, five major consolidation projects had already been completed, raising the average size of holdings by 126% and greatly simplifying ownership patterns. Although the consolidation programme was brought to a halt by the Turkish invasion, it continued more vigorously in the 1980s and the first half of the 1990s and produced good results.

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