such as climate change, which causes instability in production and high price volatility. Added to these are structural challenges, particularly associated with traditional olive groves, which are often ageing, uncompetitive and labour-intensive, with limited capacity for investment. Efficient water management plays a central role in ensuring stable production and prices, making the system more predictable. Developments in the Alentejo demonstrate the importance of infrastructure such as the Alqueva dam in this regard. Another significant challenge relates to rising production costs, driven by increases in the prices of fertilisers, energy and fuel, as well as by global logistical disruptions linked to unstable geopolitical contexts. These factors have been eroding the profitability of producers and businesses, putting pressure on the entire value chain and increasing the risk that less competitive farms will be abandoned. On the demand side, changes in food consumption patterns and the low international profile of Portuguese olive oil are notable. In the main European producing countries, there is a trend towards declining consumption, influenced by an increase in eating out and low olive oil consumption among young adults. Reversing this trend will require investment in promotion, education and communication targeted at the younger generations. Low international profile is another structural challenge. With the exception of the Brazilian market, where Portugal holds a strong position, the majority of exports are in bulk, unbranded and with low added value. This highlights weaknesses in terms of positioning, marketing and scale. It is essential to strengthen the presence of national brands in foreign markets and to develop a consistent strategy for promoting the product’s origin. Opportunities Despite these challenges, the sector offers significant opportunities for growth. Global demand for olive oil has been rising outside the main producing countries, driven by health concerns and changes in dietary habits. Markets such as the United States offer high growth potential, given their still low per capita consumption. The Mediterranean diet reinforces this potential, being widely recognised for its health benefits. Portugal can position its olive oil as an integral part of this lifestyle, adding cultural and symbolic value to the product. Olive oil also stands out as a natural product, obtained exclusively through mechanical processes, in line with the ‘clean label’ trend. This characteristic constitutes a competitive advantage amongst more informed and discerning consumers. Furthermore, there are numerous opportunities for differentiation, notably through traditional Portuguese varieties, distinct sensory profiles and a strong connection to the local area. Innovation can take the form of developing premium products, new packaging solutions or olive oil tourism initiatives, whilst preserving authenticity. The sector also has the potential to establish itself as environmentally sustainable. Olive groves can contribute to carbon sequestration, and the adoption of sustainable agricultural practices – already very common in Portugal today – helps to reduce the environmental footprint. Initiatives such as the Olive Oil Sustainability Programme help to formalise this commitment and reinforce credibility in the markets. Strategic Direction Against this backdrop, it is essential to transform opportunities into competitive advantages through strategy, scale and effective communication. Defining a strategic direction requires joint reflection and coordinated action. The future of the traditional olive grove is a key issue. Beyond its economic value, it represents a cultural and landscape heritage that must be preserved. Traditional varieties, such as Galega, The sector’s perspective 77
RkJQdWJsaXNoZXIy MTgxOTE4Nw==