Agriculture in Portugal's Algarve generated €811 million (US$880 million) in economic value in 2023, although a large share of that value did not remain in the region. The findings come from a study promoted by the Algarve Regional Development Commission (CCDR Algarve) and the Algarve Agriculture Federation (Fedagri).
According to the report, only €423 million (US$459 million) of the total remained within the Algarve economy. The study examining the socio-economic impact of the primary sector was presented in São Bartolomeu de Messines in the municipality of Silves.
Researchers say the outflow of value is linked to the sector's dependence on services, logistics, and distribution networks located outside the region.
"This study shows that agricultural activity generated a total impact of €811 million in national gross value added, representing 30,936 jobs," said José Apolinário, president of CCDR Algarve.
Of the total value generated in 2023, €423 million (US$459 million) remained in the Algarve. According to Apolinário, this resulted in tax contributions including €367 million (US$398 million) in social security contributions (TSU), €68 million (US$74 million) in personal income tax (IRS), and €57 million (US$62 million) in corporate tax (IRC).
He said the report should serve as a reference so that "the agricultural sector can recognise itself in it and better highlight the economic and social importance of farming in the region".
The study shows that citrus production continues to dominate the Algarve agricultural landscape, followed by nuts, dried fruit, and subtropical crops such as avocados. The region is also active in berry production.
Oranges remain the main crop in the Algarve, covering 16,284 hectares, or 47.3% of agricultural land. Nut crops cover 5,071 hectares, or 14.6%. Dried fruit accounts for 2,992 hectares, or 8.6%. Subtropical fruit, such as avocados, represents 7.2% of cultivated land.
Lower tariffs and reduced trade barriers could allow larger volumes of agricultural products to enter the European market. According to the study, this could place pressure on prices for farmers in the short term. Citrus and avocados are identified as sectors exposed to this pressure because they are "highly dependent on price".
The study also addresses future water infrastructure investments linked to the national "Água que Une" strategy. If these projects move forward, researchers estimate that agricultural production in the Algarve could expand by 2040.
In that scenario, tropical fruit output could increase by 25% and berry production by 86%. Agricultural gross value added could reach €992 million (US$1.08 billion), a 22% increase compared with 2023, while generating €286 million (US$310 million) in tax revenue.
Afonso Nascimento, president of Fedagri, said the study can support discussions with authorities.
"We don't want easy money just to survive. What we want is for the authorities to give us the conditions to invest," he said.
Source: LUSA / The Resient
