After Tunisia , Turkey, also Portugal aims to become the world's second largest producer of olive oil behind SpainAn ambitious goal, but one on which operators converge – in addition 200 professionals and 30 national and international experts – who met in the town of Porto Maior to discuss the main challenges and opportunities facing the Portuguese olive oil sector, with the region ofAlentejo protagonist, since here it insists over 50% of olive production, supported by irrigation from the Alqueva dam.
The main themes of the conference, as he recalled Mercacei, were:
- the new environmental, social and governance challenges of the sector;
- the identity of Portuguese olive oil: brand and origin;
- the path of olive oil in haute cuisine.
Assuming that “the identity of Portuguese olive oil is essential for its consolidation and success in the global market”, the challenges that persist and need to be addressed were highlighted, such as the valorization of high-quality Portuguese olive oil, creation & , revitalization of a national brand, sustainability and adapting to new market needs in a context characterized by instability and uncertainty.
The new challenges
Pedro Santos, CEO of Consulai, the largest agricultural and rural development consultancy firm in Portugal presented the latest data on world and Portuguese production, highlighting the significant growth recorded in the last campaign and the strategic role of olive groves in the transformation and modernization of national agriculture. He explained that thePortugal recorded a 10% increase in olive oil production in 2024, approaching the 200.000 tons, with exports exceeding 1,5 billion euros, without increasing the cultivated area. “This clearly reflects the efficiency and modernization of the sector, which could catapult Portugal to become Europe's second largest producer by 2030.”, he has declared.
Despite the increase in global production, with particular attention to Spain (+66%) and Greece (+36%), he explained that Olive oil prices have fallen to 2021/22 levels, which could “threaten traditional production models. This requires a new balance between price and product appreciation.".
The rapporteur has identified what, in his opinion, are the four main challenges that the sector is facing today: the value creation, which implies a greater commitment to olive oil differentiation and tourism; competitiveness, with particular attention to sustainability and compliance with European standards;sector organization, with the Interprofessional Olive Oil Association (AIFO) as a key body in promoting and financing investment in the “Portugal” brand; and theadaptation, which includes responding to climate change, digitalisation and attracting young people.
In conclusion, Santos also stated that the strategy “Water that unites”, with an iinvestment of up to 9 billion euros, May expand irrigated areas and bring direct benefits to olive groves, making the professionalization of the sector and the valorization of rural areas essential.
A strategic opportunity
In the ensuing debate, all speakers agreed that Portugal has a strategic opportunity to consolidate its olive oil internationally They emphasized the importance of creating and promoting the "Portugal" brand for packaged olive oil, in a collective effort to differentiate and promote the national product. During the discussion, the need to invest in the sector's organization, training, sustainability, promotion, and internationalization of Portuguese olive oil emerged.
Furthermore, the Spanish experience, presented during the debate, reinforced the importance of a coordinated and structured action to stimulate international markets and encourage domestic consumption. In their view, this example demonstrates the positive impact of an interprofessional association. “solid and active”, an aspect that is also necessary in Portugal. According to the speakers, Portugal is currently experiencing a new cycle of growth and transformation in the olive oil sector, driven by strategic challenges and new opportunities. It is crucial to manage price volatility while maintaining focus on the goal of promoting Portuguese olive oil and capitalizing on the evidence of the value consumers place on this product.
During the debate it was underlined that significant modernization of the Portuguese sector in recent years, which has led “98% of the olive oil produced is classified as virgin or extra virgin and three of the most advanced mills in the world are located in Portugal, unmistakable signs of the quality and innovation that characterize the sector in Portugal.”.
