Celebrated Greek cheesemakers brought low by inflation

ATHENS - Inflation in Greece rose to 12 percent in September before dropping to 9.1 percent in October. 

Even though the government announced nearly 280 million euros in support benefits for young farmers earlier this year, there is still heavy pressure on the country's agricultural sector which employs 11 percent of the workforce.

"Last year, a bag of feed cost 14 euros. This year it's 21 euros. Gasoline has skyrocketed to 2.30 euros per litre at the moment," said farmer Yannis Karganis.

Throughout the country, social pressure is rising in the face of soaring energy prices. 

In November, a general strike on the issue paralysed Greece.

Dimitris Kapounis, head of the union of Naxos agricultural cooperatives, warns that if nothing changes "in the medium term, there will be no more milk on the Greek market, no meat, potatoes, or anything else."

Naxos graviera -- made from 80 percent cow's milk and 20 percent sheep or goat's milk -- is one of Greece's most popular cheeses. 

The Greeks like it sprinkled on pasta, fried or as a table cheese.

But even carrying the vaunted European Protected Designation of Origin label, and exporting to a dozen countries including the United States and Germany, hasn't helped stem the slide in output as costs ramp up.

This year, the usual annual production of more than 1,250 tons has already fallen by 130 tons, the cooperative said.

The cost of transporting goods from the Greek mainland is also becoming prohibitive -- it takes more than five hours by boat to get from the main Greek port of Piraeus to Naxos.