55 The future of olive growing and olive oil: key opportunities and challenges FRANCISCO CAMPELLO AGRO.GES – Sociedade de Estudos e Projetos, Lda. 1. Introduction Olive growing has established itself as one of the most successful agricultural sectors in Portugal, driven by a profound transformation that has taken place mainly over the last 15 years, which has consolidated the country’s position as a key player in the global olive oil market. The sector has undergone a veritable revolution, taking the country from a deficit situation to the position of the world’s sixth-largest producer of contributing to a reduction in unit production costs and to strengthening the economic viability and competitiveness of farms. Despite requiring less labour, the jobs generated by modern olive groves tend to be more specialised and better paid, which has contributed to the sector’s development. These changes in the countryside have been accompanied by the modernisation of olive mills, which have increased their processing capacity and significantly the quality of the olive oils produced — around 85 per cent of national of olive oil. Portugal has become a net exporter: the third-largest exporter in the EU and the fifth-largest globally. Despite this successful trajectoryt,he sector faces significant challenges. production is classified as extra virgin olive oil. Thanks to investments in automatation and efficiency, This revolution was based not only on an expansion of the areas dedicated to olive cultivation, but, above all, on the technological transition from traditional olive groves to modern irrigated systems, namely open-vase olive groves and, more recently, hedgerow-style olive groves. Currently, around 64 per cent of the national olive grove area consists of modern olive groves (vase or hedge), the vast majority of which are irrigated (38 per cent of the olive grove area is irrigated). The hedgerow olive grove system has enabled significant gains in productivity and high levels of mechanisation, some Portuguese olive mills are now among the most advanced in the world. Despite this successful trajectory, the sector faces significant challenges. The growing volatility of international markets, the entry of new olive oilproducing countries and changes to trade agreements — such as the negotiations between the European Union (EU) and Mercosur or the imposition of tariffs by the United States — will introduce new competitive dynamics, forcing the sector to adapt rapidly to environments of greater
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