MISCELLANEOUS PUBLICATIONS No. 3. ASPECTS OF THE AGRICULTURAL ECONOMY OF CYPRUS 1950-1965 BY PETROS YIASSEMIDES Dip. Agric. (Cirencester), N.D.A., B.Sc., M.Sc., (Kans. St. Univ.) AND Dr. HARALD KUNERT FAO — Expert in Agric. Economics CYPRUS,AGRICULTURAL RESEARCH INSTITUTE MINISTRY OF AGRICULTURE .1\ AND NATURAL RESOURCES March, 1967. MISCELLANEOUS PUBLICATIONS NO. 3 ASPECTS OF THE AGRICULTURAL ECONOMY OF CYPRUS: 1950 — 1965. By PETROS YIASSEMIDES Dip. Agric.(Cirencester), N.D.A., B.Sc., M.Sc., (Kans. St. Univ.) and. Dr. HARALD KUNERT FAO — Expert in Agric. Economics CYPRUS AGRICULTURAL RESEARCH INSTITUTE MINISTRY OF AGRICULTURE AND NATURAL RESOURCES March, 1967. CONTENTS Page Position of Agriculture Within the Cyprus Economy. • • • • • • • :2 . Land Use Structure • • • • • • • • • Agricultural Inputs and Outputs . • • . 13 An Econometric Model of Cyprus Agriculture 1950 — 1965 . • • . • 1 4 • a • 20 Appendices:— A. BasicA)ata. • • 1 • • • • e 28 32 B. Agricultural Maps . • • • • • • • • • List of Tables Page Share of Each Sector in Gross Domestic Product at Current Fab-tor Cost (in percentage) . a 0 2 Economically Active Population . • • • 03 Gross Domestic Product at Current Factor Prices: Total and per Economically Active Person • • 4 Imports of Agricultural Products for Home 6onsAmption • Exports of Agricultural Products • 6 Structure of Land Use: 1965 • • 7 Structure of Land Ownership • • • 7 Distribution of Holdings by Size • • • • 8 Structure of Agricultural Land Use • • • • 9 Structure of Irrigated Land • • • • Number of ‘ractors Engaged in Agriculture. • • 11 Structure of Livestock and Livestock/Fodder Area Relationship • • • • . 12 Agrioultural Operating Inputs for the Yeat 19 .5 (Crops and Livestock) • • • • . 13 Growth of Agricultural Gross Output with Current Prices • • • • . 14 Total and Annual Rate of Change of Cultivated Land for the Period 1950 — 1965 . Total and Annual Rate of Change of Agricultural Gross Output for the Period 1950 — 1965 . 16 Testing of the Null Hypothesis that Each Regression Coefficient.is Really Zero ("t" test) . • • 26 Agricultural Gross Output at Constant 1965 Prices 28 Acreage, Number of Livestock and Rainfall. 29 Average Crop Prices Received by Farmers During 1965. 30 List of Figures Page, Three-Year Moving Average of the Cultivated Land Use Structure for the Period 1950 - 1965 . • . 10 Trends of Agricultural Wages and Fertilizer Price 17 Index of Prices and Agricultural Gross Output . • . 18 Three-Year Moving Average of the Gross Agricultural Output (Crops Only) with Constant 1965 Prices for the Period 1950 - 1965 . • • • . 19 Comparison of the Actual and Estimated Gross Agricultural Output: 1950 - 1965 . • • • • 27 List of Maps Agroclimatic Zones . • . 32 Soil Classification. , . , . 33 Topography. • . 34 Isohyetal Lines . • . 35 Dam Projects . 36 Main Vegetation and Crops • . • • . 37 Distribution of Sheep and Goats. • . 38 Distribution of Dairy Cattle and Pasteurized Milk Plants 39 Distribution of Organised Piggeries and Poultry Units , 40 Population Distribution. 41 • - AKNOWLEDGEMENTS The authors are thankful to all those people who helped them in many ways to prepare this report. They are especially grateful to the staff of the Department of Research and Statistics of the Ministry of Finance and the Planning Commission for their assistance in collecting the basic data and their suggestions.. INTRODUCTION Though Cyprus, unlike most developing countries, has a reputation of having fairly accurate statistics over a number of years the available information is scattered in many government publications - Statistical Abstracts, Economic Reviews, Annual Reports of various government departments, blue books etc. This report was written tith the aim of bringing under one cover all the available information on the agricultural sector of the economy. It is hoped that this report will, firstly, facilitate the study of the agricultural problems of the island, secondly, precent the available agricultural statistics in a comprehensive and meaningful form and, thirdly, give the opportunity to local and foreign people interested in the agricultural economy of Cyprus to obtain a concise picture of Cyprus agriculture. The report is divided into four parts. Part one deals with the position of agriculture within the overall economy of Cyprus. Part two presents the land use structure and part three outlines the agricultural inttOG and outputs and the performance of agriculture during the period 1950 - 1965. The last part presents the results of an attempt to apply the multiple corre- lation technique in measuring the influence of certain variables on the gross output of Cyprus agriculture. - — — POSITION OF AGRICULTURE WITHIN TRP, CYPRUS ECONOMY TABLE 1.1 Share of Each Sector in Gross Domestic Product at Current Factor Cost (in percentage) , Sectors , 1958 1960 . 1965 • 1. Agriculture, Forestry, Fishing and Hunting 19.2 • 16.6 , 22.1 2. Industry Mining, Qaarrying, . Manufacturing, Electricity, Gas, Water and Construction 29.8 29.9 , 28.6 3. Commerce Wholesale, Retail Made, Ownership of dwellings, Banking, Insurance and - Real Estate 22.1 23.6 20.4 4. Transport, Communications and Other Private Services 20.6 1 22.2 . 23,3. i 5. Public Services 8.3 , 7.7 5.6 , Gross Domestic Product 100.0 100.0 100.0 Sources Economic Report 1965, Ministry of Finance. 3 TABLE 1.2 Economically Active Population 1960 1965 1960 1965 Sectors 1000's Percentage . Agriculture, Forestry and Fishing 94.8 97.0 40.3 39.6 2. Industry , Mining, Quarrying, . Manufacturing, Gas, Electricity, Water and Sanitary Services Construction 58.2 58.7 24.8 23.9 3. Commerce 16.2 18.5 669 7.6 4. Transport, Communication and Other Private Services 36.7 44.5 15.5 17.3 5. Public Services, Government and Communal Institutions and . Military Services 29,4 28.3 12.5 11.6 , Total Economically Active Population 235,3 245.0 100.0 100.0 Source: Economic Report 1965, Ministry of Finance. , 4 TABLE 1.3 L Gross Domestic Product at Ctirrent Factor Prices: Total 'and -r Economicali Active Person , 1958 1960 1965. 1958 1960 1965 Sector R. million Z per capita , 1. Agriculture, Forestry, Fishing and Hunting 17.9 15.5 29.2 n.a. 163.5 332.2 2. Industry Mining, Quarrying, . Manufacturing, Gas, Electricity, Water and Construction 27.7 27.8 37.8 n.a. 447.6 643.9 3. Commerce Wholesale,- Retail , Trade, Ownership of Dwellings, Banking, , Insurance and Real Estate 20.6 21.9 31.8 n.a. 1351.8 1718.9 4. Transport, Communication, Other Private Services 19.2 20.7 26.9 n.a. 564.0 604.5 5. Public Services 9.4 7.2 11.6 i n.a. 244.8 409.9 , Gross Domestic Product Total and per Capita 93.1 93.1 132.1 n.a. 395.7 539.2 , Source: Economic Report 1965, Ministry of Finance. TABLE 1.4 Imports of Agricultural Products for Home Consumption 1955 1960 1965 1955 1960 I 1965 Item g, 1000's Percentage 1. Live Animals Chiefly for Food 18 24 75 0.5 0.5 1.2 2. Meat and Meat Prepara- tions 179 946 1,504 5.2 18.8 24.4 3. Dairy Products, Eggs and Honey 494 899 1,104 14.4 17.9 17.9 4. Fish and Fish Prepara- tions 185 285 351 5.4 5.7 5.7 5. Cerea16 and Cereals Preparations 1,772 1,765 1,656 51.7 35.0 , 26.8 6. Fruits and Vegetables 268 621 877- 7.8 12.3 14.2 7. Sugar and Sugar Prepa- rations 506 494 605 14.8 9.8 9.8 Total Imports of Agricultural Products 3,422 5,034 6,172 100.0 100.0 100.0 Source: Statistical Abstracts, Ministry of Finance. TABLE 1.5 Exports of Agricultural Products 1955 1960 1 1965 1955 1960 1965 1 t e m - k. 1000's * Percentage 1. Citrus Fruit Oranges 755.8 1172.1 2763.1 12.7 18.1 241 Lemons 193.6 276.8 453.0 3.2 4.3 3.6 Grapefruit 202.1 334.6 989.4 3.4 5.2 7.9 - . Tangerines and Mandarins .... 16.5 - - 0.2 2. Potatoes 697.0 1236.1 2386.6 11.7 19.2 19.1 3. Cereals 1194.1 - 1838.5 19.9 - 14.7 4, Carobs 1139.0 969.6 629.0 19.0 15.0 5.0 5. Carrots 80.1 313.1 338.8 1.3 4.9 2.7 6, Almonds 200.91 198.0 235.5 3.3 3.1 - 1.9 7. Leaf Tobacco 182,0 223.0 208.4 3.0 3.4 1.6 8. Legumes 65.9 47.8 87.4 1.1 0.7 0.7 9. Melons & Water Melons 39.2 111.4 73.4 0.6 1.7 0.6 10, Cuminseed 41.9 2.9 3.6 0.7 0.04 0.02 11. Figs 15.1 6.8 2.9 0.2 0.1 0.02 12. Onions 25.2 6.7 - 0.4 0.1 13. Wines & Spirits 524.5 639.1 1109.7 8.7 9.9 8.9 14. Vine Products Grapes 172.3 301.4 575.6 2.9 4.6 4.6 Raisins 158.4 283.8 347.3 2.6 4.4 2.8 Sultanas 13.4 31.2 34.6 0.2 0.5 0.3 15. Hides & Skins • 101.4 198.3 267.8 1.7 3.1 2.1 16. Wool 202.1 . 114.3 142.8 3.4 1.7 1.1 Total Exports of Agricultural Products 6004.0 6467.0 12503.9 100.0 100.0 100.0 Source: Statistics of Imports and Exports for 19559 1960 and 1965. , - 7 - LAND USE STRUCTURE TABLE 2.1 Structure of lend Use: 1965 Donums -1°- • Agricultural Land Cultivated Land. (incl. fallow) 3,300,000 47.7 Unimproved Grazing and Vacant Land 698,300 10.1 , Uncultivable and Potentially Cultivable Land 1,129,860 16.3 • Forests (major and minor) State Forests 1,206,000 17.4 Private Forests 101,120 1.5 Town and Village Sites, Roads, River—beds, etc.