Olival in Alqueva: sustainability, investment and regional development 87 One of the most striking examples of this change is the transition from vase olive groves to the hedgerow system. The vast majority of farm holdings have opted to convert their olive groves to the hedgerow system, with around 2,000 trees per hectare. In this model, the olive trees are planted at closer intervals and managed to form a continuous wall of vegetation, similar to a hedge. The main advantage of this system lies precisely in its high degree of mechanisation. Most agricultural operations – from pruning to harvesting – can be carried out using specialised machinery, drastically reducing the need for labour. In a context where the availability of agricultural workers is steadily declining, this feature makes the hedgerow olive grove particularly attractive to many farmers. Furthermore, the hedgerow system allows for a faster start to production and higher productivity per hectare, contributing to greater farm profitability. Olive grove management also becomes more predictable and uniform, facilitating the planning of cultivation operations and the optimisation of resources. The economic impact of this development is evident at various levels. Beyond agricultural production itself, the olive oil sector has contributed to the establishment of modern industrial extraction and processing facilities, strengthening the region’s technological capacity and creating new value chains. The presence of large integrated producers, often with their own mills and a strong presence in foreign markets, has helped to position Portuguese olive oil as a competitive and internationally recognised product. At the same time, growing international demand for high-quality olive oil has strengthened the sector’s competitiveness, stimulating investment and consolidating Portugal’s position as a major exporter in this market. The expansion of olive groves also had a significant impact on the value of agricultural land. The introduction of irrigation and the possibility of establishing permanent crops with high added value contributed to a reconfiguration of the regional land market, increasing interest from national and international investors and promoting the conversion of areas previously occupied by extensive rain-fed crops or by less profitable annual crops. On a social level, the development of olive groves has contributed to the economic revitalisation of a region that had, for decades, been characterised by depopulation and an ageing population. Although the mechanisation of olive cultivation reduces the need for labour compared with traditional agricultural models, the sector has generated direct and indirect employment in various areas, including agricultural management, mechanisation, irrigation, technical services, logistics and industrial processing. Olive cultivation has thus contributed to the creation of regional wealth, to retaining the population and to strengthening territorial cohesion. Environmental sustainability is also a key pillar of the sector’s development. Olive groves are a crop that is very well adapted to the climatic conditions of the Mediterranean region and, compared with other irrigated crops, exhibit relatively moderate levels of water consumption, particularly when combined with efficient localised irrigation systems. Efficient water management is of particular importance in the context of climate change and growing pressure on water resources, with technical monitoring and technological innovation being essential elements in ensuring long-term sustainability. Furthermore, as a permanent crop, olive groves can contribute to improving soil structure and carbon sequestration, particularly when appropriate agronomic practices are adopted, such as grass cover between rows or sustainable fertilisation management. The growing emphasis on sustainable agricultural practices has also led the sector to develop its own initiatives, such as environmental certification and monitoring
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