Fall in olive oil prices slows Portuguese agrifoods exports
A correction in the price of olive oil has caused exports of agricultural foodstuffs and beverages to fall for the first time in 10 years.
Exports fell 4.5% to €7.8Bn in 2025 according to the FIPA (Federation of Portuguese Agri-foods Industries, blaming the fall – the first in a decade – to a correction in olive oil prices.
The President of FIPA, Jorge Tomás Henriques, while not minimising the impact of the tariff wars, says the problems come mostly from within Portugal and is calling on the government to scrap VAT at 23% on food products, and a reduction in overhead costs such as energy to help the sector become more competitive.
The FIPA boss is also calling on more support for internationalisation and effective exportation, a more active Portuguese export bureau (AICEP) and a return to economic diplomacy.
“Regarding 2024, there is a decrease of approximately 4.5% in value – I’m referring exclusively to the agri-food and beverage industry, not the agri-food sector as a whole – because we had a correction in olive oil prices, which had been influenced in previous years by the drought in the Mediterranean region and, therefore, had an impact, but not in terms of quantities”, he said.
Henriques said there had been a significant growth in volume in various sectors with olive oil up 10% in quantity.
He said that FIPA’s long-term target had been to achieve €10Bn of exports by 2030, but that the agriculture sector has so far fallen well short of that target.
We need the instruments supporting internationalisation and exports be effective. We need, for example, a more active AICEP (Portuguese Trade & Investment Agency), with more delegations across these regions, to resume economic diplomacy and, once again, to reduce overhead costs.
We cannot be competitive if we have overheads that create difficulties for us in relation to our partners. And we also need to help build brands. These are the main challenges for the sector”.
SOURCE: Negócios; Credits: FIPA
