Efficiency Analysis of Sheep Farms in Cyprus Reveals Opportunities for Improvement

Strategic Insights -

Researchers at the Aristotle University of Thessaloniki have conducted a comprehensive study to measure the efficiency level of dairy farms in Cyprus and estimate the capacity of sheep farmers to support the increasing demand for halloumi cheese. The analysis, funded by the European Union's Horizon 2020 Research and Innovation Programme, applied Data Envelopment Analysis to data from 50 dairy sheep farms in Cyprus, which operate under extensive, semi-intensive, and intensive systems. The findings indicate that farms can reduce production costs by utilizing economies of scale and utilizing fixed capital endowments at full capacity.

Key Takeaways:

  • The research applied Data Envelopment Analysis to data from 50 dairy sheep farms in Cyprus to measure efficiency levels.
  • The most efficient farms operate under semi-intensive and intensive dairy sheep farming and achieve higher milk yields than farms operating under extensive systems.
  • Feeding constitutes the main cost driver, exceeding 60% in both efficient and inefficient farms.
  • Labor wages and fixed capital cost vary between 25% and 30% of the total production cost for both efficiency groups.
  • The research concludes that farms should utilize economies of scale to reduce production costs and utilize fixed capital endowments at full capacity.
  • The study implements a comparative financial analysis between efficient and less efficient farms.
  • The main features of the most efficient farms are presented, indicating room for improvement in extensive and semi-intensive dairy sheep farming.

Statistics:

  • The research analyzed data from 50 dairy sheep farms in Cyprus.
  • The most efficient farms achieve higher milk yields than farms operating under extensive systems ( exact figures not provided).
  • Feeding constitutes the main cost driver, exceeding 60% of the total production cost in both efficient and inefficient farms.
  • Labor wages and fixed capital cost vary between 25% and 30% of the total production cost for both efficiency groups.

Sources:

*VertexArray, S. (2025). Efficiency Analysis of Sheep Farms in Cyprus. Agriculture, 15(14), 1555. (Agriculture - http://www.mdpi.com/journal/agriculture).

  • Sokratis Sokratous et al. (2025). Data on Agriculture Published by Researchers at Aristotle University of Thessaloniki (Efficiency Analysis of Sheep Farms in Cyprus). Agriculture Week. August 14, 2025; p 46.