Serpa region to exceed oil production YoY. Over two thirds go to the packaging chain in Italy.

Serpa olive farmer anticipates a good year for oil production, exceeding last year's results, where 1.5 million kilos of oil is expected to reach the markets. Estimates points out to an average between 1 and 2% of the national output.

The oil produced in this campaign is intended entirely for export. Its recurrent buyers, Italy, which is the biggest bottle packaged oil exporter, should take 70% of its stocks. Spain, the largest producer of olive oil worldwide and the United States, the fastest growing market, absorb the remaining 30%.

Despite the fact that Portugal had one of the best years ever for the oil production, concerns towards depressed prices for olive oil in international markets remain based on EU overstocks.

The Alentejo has been strengthening investment in the olive grove sector, of which in eight years has seen its value to triple, with production currently standing at 551 million kilograms of olives, representing around 400 million euros. A result of constant investment in 2019, representing 655.7 million euros of agricultural investment in Alentejo, where the olive grove accounts for 64.39% of the total.

According to a study developed for Olivum - Southern Olive Growers Association, Alentejo is at the “center of attention of the agricultural world and has led the current transformation of international olive growing”, becoming “the world reference in the process of modernization and olive-growing innovation ”, which clearly shows the growth potential.