• Preserving and promoting traditional cheesemaking in Crete.
• Modernising the firm’s main cheese production unit with improved food safety and quality standards.
• Using local milk production through on-site processing.
• Creating new jobs and increasing family incomes.
• Strengthening vertical integration and succession in the family business.
• Income diversification through agritourism and direct sales.
• Reinforcement of family succession and involvement.
• Showcasing local products and culinary heritage through a visitor-friendly space and traditional ‘mitato’.
• Support for rural entrepreneurship by young producers.
• Promoting sustainable practices and reducing environmental footprint risks.

Activities

LEADER project actions combined a structured planning of intergenerational continuity for the island’s food system with a forward-looking personal investment strategy rooted in both tradition and innovation. From the outset, the new generation of the Papadakis family assumed an active role in shaping the transition from small-scale cheesemaking to an integrated, modern, island-first, diversified dairy operation.

A key foundation and intelligence stage involved training and strategic planning covering feasibility analysis, architectural studies, site selection and compliance with the LEADER funding system’s priorities. These preparatory actions ensured that traditional know-how could be embedded within a viable and future-oriented cheese production model.

Licensing and preparatory works followed, including the acquisition of all necessary permits for construction and operation. Infrastructure works began, laying the foundation for a purpose-built dairy unit designed to meet contemporary regulatory and hygiene standards.

The core investment phase involved the construction and equipping of the dairy facilities. Dedicated spaces for cheesemaking, maturation, and refrigeration were established, alongside the installation of modern pasteurisers, stainless-steel vats, cold rooms, and automated cleaning systems. Digital monitoring tools were introduced to enhance traceability of raw materials, strengthen quality assurance, reduce losses, and optimise efficiency, while preserving the artisanal character of production.

A subsequent extension created visitor-oriented infrastructure. A traditional stone-built ‘mitato’ (shepherd’s hut) was constructed as a cultural reference point, accompanied by tasting areas, exhibition space, and visitor reception facilities. This addition positioned the dairy within a broader experiential framework linking agrifood production and rural tourism.

Commercial production of traditional cheeses commenced with a strong emphasis on locally sourced milk. Parallel training activities in food safety, hygiene, sales, and visitor services strengthened internal capacity for better production systems and services.

Promotional actions expanded outreach and visibility, including brand development, participation in fairs, collaboration with tourism actors, and active use of social media.

• Over 900 tonnes of local milk can now be processed by the unit annually, providing an outlet for local producers and reducing transportation to distant processing plants.
• Five permanent and three seasonal jobs have been created, while 30+ local dairy farmers benefit from stable partnerships and increased producer prices (+15% on average).
• Production capacity increased by 40% in the first year of operation, reaching 10 tonnes of dairy products per month.
• The company’s products are now available at over 70 points of sale across Crete, as well as in major Greek cities, significantly enhancing the brand’s visibility and reputation.
• Partnerships have been established with teams of renowned international chefs and restaurants abroad (e.g. USA). Products are already exported to countries like Australia, Austria, France, and Belgium.
• Environmentally responsible practices are implemented by reducing energy needs through reusing hot water and reducing transport CO₂ emissions.
• Whey by-products are repurposed as animal feed, offering a circular business model of territorial regeneration.
• The business has been transformed into a place of storytelling, education, and cultural exchange for visitors, students, and tourists.
• Proof has been provided that small rural enterprises can successfully combine tradition, innovation, and sustainability, playing a vital role in revitalising rural areas.
• Intergenerational ties and knowledge transfer have been strengthened by actively engaging three generations in a shared vision.
• The cultural identity of Smari village has been highlighted, and fostered local pride in traditional produce has been fostered.
• Cultural heritage has been preserved by constructing the traditional stone shepherd’s hut.

Key lessons

• Blending economic activity in local identity and family cohesion, the project reinforces food system value chains more than merely supporting primary production.
• Flexible, place-based funding instruments can catalyse generational renewal and stimulate cooperation among producers, cooperatives and knowledge institutions.
• Well-calibrated intervention rates, aligned with territorial needs, can help transform young rural talent into viable rural entrepreneurs and role models of good practice.
• Higher LEADER intervention rates in Greece (from around 65% and reaching up to 80% in small islands and disadvantaged areas) can illustrate how differentiated aid intensities within the CAP can unlock investments that might not proceed under measures offering 40–50% of eligible costs. This shows how LEADER can significantly lower own-capital requirements and investment risk, widening access to agrifood modernisation and diversification opportunities.
• The Smari dairy shows how such support can underpin integrated rural business models that combine local raw materials, careful processing, direct marketing, and agritourism.