Wine is a historically universal language for a good, relaxing time with trusted friends and family. The origins of wine can be traced back to the South Caucasus in 6,000 BC, specifically in Georgia which has earned the title of “the cradle of wine” where ruins and burial sites indicate that grape designs were included throughout their art and sculptures.

Today, the wine industry is looking to make a shift to sustainability, as this historical agricultural practice falls under the gaze of environmental, social, governance (ESG) goals and strategies set by the European Union (EU). Cyprus is also included in this transition from traditional wine-making methods to new, sustainable practices, in an effort to modernize wineries and the industry as a whole. To gain a clearer picture of the future of Cyprus’ wine industry, we should explore its history with “the grape.”

The island’s well-known Mediterranean climate has contributed to its strong wine industry for over four thousand years. Cyprus’ most famous wine, Commandaria, is the oldest named wine that remains in production to date. The wine is mentioned across various historical accounts and stories, according to Mike Veseth, renowned wine blogger and wine economist. In his examples, Mike Veseth shares that “Pliny the Elder, the Roman “Robert Parker,” praised the island’s wine. 

An additional example is that of Giovanni Mariti and his book titled Wines of Cyprus, dated 1772, “that was written to explain Cypriot wine to international consumers.” These accounts, and many more, are a testament to the historical sweet wine treasured by Kings, settlers, and traders throughout the ages. 

But, what of Cyprus’ wine industry now, and what does the future hold?

In 2020, the global wine industry was estimated to be at $326.6 billion, and is expected to reach $434.6 billion in 2027. The leading exporters of the industry based on revenue are France ($13.1 billion), Italy ($8.4 billion), and Spain ($3.5 billion). In comparison to industry leaders, Cyprus generates $379 million in revenue from its wine industry, making it a non-negligible, but still much smaller value than its European neighbors.

The first large change to Cyprus’ industry in recent history is noted in the island’s accession to the EU in 2004, which, according to Cyprus’ Press and Information Office (PIO), has significantly improved the island’s wine industry. By creating a new “wine map” and conforming to a new legal framework, the island’s wineries were given their appropriate classification and labeling, enabling them to be sold on a broader scale.

Four years on, in 2008, an estimated 1.4 million liters of Commandaria was produced, reaching Eastern regions including Australia and Japan. While there are villages in Cyprus, especially in Limassol and Paphos, that produce and sell Commandaria, there are also mainstream producers of the wine. They are referred to as the “Big Four” of Cyprus’ winemakers, and include KEO, SODAP, LOEL, and ETKO, with ETKO being the first to industrialize winemaking in 1844.

Mainstream wine producers aside, there are various, smaller wine producers and wineries across the island, such as Zambartas wineries. Zambartas wineries are aware of the need to exercise biodiversity in viticulture, and do so by using organic products. Their vineyards are accredited by LACON for being 100% organic in 2019, not only for their use of organic products, but for exercising leniency on their use of water and irrigation systems. 

Despite Commandria’s fame and fortune, Cyprus is home to several indigenous grapes such as Morokanella which rose to prominence during the Ottoman’s occupation of the island, and is widely used in the island’s wines across the various wineries.

Today, as economies and industries adjust the calls for ESG tailored approaches to businesses, the agricultural practice of winemaking is due to change. According to the World Economic Forum (WEF), the core environmental challenges for the winemaking industry take place in the transport and packaging processes. 

Winemakers have adopted “regenerative agriculture, use of cover crops, renewable energy sources for vehicles, electricity and water, and are leveraging a variety of tools to minimize their impact on the environment.” The WEF also notes that, on the social frontier, the winemaking industry is subject to labor-intensive work. Referring to an industry scandal in 2020, the industry suffered a blow, resulting in a new requirement for wineries to report on treatment of employees in terms of labor hours, pay, and working conditions.

On the governance front of ESG practices, the winemaking industry is looking to consolidate a standard of practices that will be universal. Leading this effort is a non-profit platform called the Porto Protocol, where members call on the industry to collaborate on their efforts to combat climate change and share knowledge to improve winemaking practices, supply chains, and transparency on development performance.

These changes will occur incrementally, gradually, and globally. However, there are changes due to occur specifically in Cyprus, following the European Commissions’ (EC) Common Agricultural Policy (CAP), which was approved on the first of January, 2023. CAP aims to provide a more sustainable future for the EU’s farmers, supporting smaller farms and offering greater flexibility to “adapt to measures and local conditions.” 

The EC further states in a news article that “Under the reformed policy, funding will be more fairly distributed among farms, with an emphasis on small-and medium-sized farms, as well as young farmers. Moreover, farmers will be supported to take up innovation, from precision farming to agro-ecological production methods.”

To receive funding from this program, countries must submit their CAP Strategic Plans to the EC, detailing their funding strategies and their contributions to ESG goals. Cyprus submitted their plan, alongside Italy, both of which were successful. 

The two approved Strategic Plans will receive a “total EU budget of over €26.9 billion, with €373 million for Cyprus and €26.61 billion for Italy. Out of the total EU budget of these two countries, €7.4 billion will be dedicated to environmental and climate objectives and eco-schemes and almost €680 million to young farmers.”

According to the EC’s news article, Cyprus will allocate €155 million to farmer’s income, and will aim to support Cyprus’ main agricultural export, halloumi. Additionally, Cyprus will address water management and soil preservation challenges by investing in irrigation and innovative agricultural practices. Included in Cyprus’ CAP Strategic Plan are rural development funds geared towards supporting local businesses which are projected to create more than 900 employment opportunities.

Of the total of €155 million, €22 million will be pledged to the island’s wine industry from 2023 to 2027. This considerable sum will be dedicated to reforming and transforming vineyards to include grapes of a wider variety, as well as to repair stone walls to reduce soil slopes and erosion. The investments in Cyprus’ wine industry will also aim to increase awareness of its wineries, as well as modernizing them through refined wine cultivation practices.

As Cyprus’ vineyards and winemaking industry embark on a journey of transformation and renewal, the extent of change remains to be seen. It is clear that the historical industry has an impact on ESG challenges; all of which are aimed to be tackled as per the EC’s CAP, the Porto Protocol, and globally recognized institutions such as WEF. 

Cyprus’ long history with winemaking and exports has seen significant changes, and has received global recognition with its iconic Commandaria. The question remains if Cyprus’ iconic dessert wine will re-emerge in global awe and preference, and if the island’s wine industry’s transformation will inspire agricultural innovation in time to come.