Milk prices in Cyprus today are lower than they were last year despite EU-wide price hikes, which is creating issues for milk producers, Agriculture Minister Costas Kadis said on Tuesday.

He was speaking after a House agriculture committee which discussed the issues facing halloumi production in the face of price increases.

Kadis told reporters that all EU countries have reported significant increases in the price of milk, with Cyprus, where the price of milk is marginally lower than last year’s, being the only exception.

He explained this is because while milk is produced using more expensive raw materials, it is sold at the same, or a lower price, which constitutes “a pan-European novelty”.

According to the minister, production costs for sheep and goat farmers are close to €1.50 per litre, but milk is sold at €1.20 per litre.

“This creates a huge issue and the market needs to work so these people can get the price they deserve for their product,” he said, adding that if this doesn’t happen it could lead to businesses closing down.