It is fascinating to see how different sectors of the economy contribute to the country’s overall development, and these numbers demonstrate that Portugal is expanding beyond its traditionally strong industries.

After reviewing the latest data on Portugal’s agro-food exports, it is clear that the country’s export industry has reached an impressive milestone. In 2024, Portugal’s agro-food exports surpassed 8 billion euros, marking a remarkable 8.7% growth and achieving the annual target set by the Federação das Indústrias Portuguesas Agroalimentares (FIPA). This milestone highlights Portugal’s growing role in the international market and reinforces its trajectory towards reaching 10 billion euros in exports by the end of the decade.

The European market has been the driving force behind this achievement, recording a 12.6% increase in demand for Portuguese agro-food products. This expansion significantly outpaced growth in non-EU markets, which rose by 1.2%. Spain remains Portugal’s most significant trading partner, accounting for 38.6% of total exports, and showing an impressive 13.2% year-over-year growth. Beyond Spain, Brazil also recorded strong performance with a 13.9% increase, reaffirming its position as Portugal’s third-largest agro-food export market.

A key factor in this growth is the evolving trade environment. The anticipated EU-Mercosur trade agreement is set to open new doors for Portuguese products, particularly in wine, olive oil, and canned goods like fish and tomatoes, which have been gaining international recognition. This expansion will provide Portuguese exporters with opportunities to diversify and strengthen their presence in Latin America, overcoming long-standing trade restrictions.

The United States remains a key market despite recent trade concerns. While growth in the U.S. was recorded at 4.2% in 2024, potential tariff changes from Washington have raised concerns within the industry. However, industry leaders remain confident, noting that alternative markets, including Mexico, could present new opportunities if protectionist policies are implemented.

Looking at product categories, olive oil and wine continue to be dominant forces, representing nearly one-third of total agro-food exports. Olive oil exports surged by an astounding 46.5%, reaching 1.592 billion euros, largely influenced by inflation and increasing global demand. Meanwhile, wine exports grew by 4.5%, reaching 965 million euros. Other key contributors include canned fish, dairy products, and baked goods, all showing steady growth and reinforcing Portugal’s reputation for high-quality food products.

While some markets like Germany, Angola, and Switzerland saw slight declines, the overall performance of the agro-food sector remains overwhelmingly positive. Portugal’s continued economic diplomacy and proactive trade strategies will be instrumental in achieving the ambitious goal of 10 billion euros in exports by 2030.

Portugal’s agro-food industry is at a pivotal moment. With a strong government-industry relationship, growing international demand, and key trade agreements on the horizon, the sector is set for continued expansion. This success not only enhances the country’s global economic standing but also solidifies Portugal’s reputation as a top-tier exporter of quality agro-food products.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes