The Gross Value Added (GVA) of agriculture in the Algarve reached €811 million (US$880 million) in 2023, representing 4% of the region's GVA. Nationally, agriculture accounts for 2.4%, meaning the Algarve's sector is 46% above the national average. These figures were presented at the launch of the study, Economic Assessment of Algarve Agriculture, commissioned by CCDR Algarve and conducted by Ernst&Young.
Between 2014 and 2023, the Algarve's primary sector grew by 6.4%. During the pandemic, agricultural GVA increased while tourism contracted, helping to stabilize the regional economy.
Citrus fruits remain the dominant crop, covering 16,384 hectares or 47.3% of farmland. Tree nuts, mainly carob, occupy 5,071 hectares (14.6%), and subtropical fruits, mainly avocado, 2,500 hectares (7.2%). In terms of value, citrus generated €181 million (US$196 million), avocados €95 million (US$103 million), and carob €60 million (US$65 million) in 2023.
The share of citrus in production value declined from 48% in 2019 to 35% in 2023, while avocado rose to 18% and carob to 12%. Avocado is the most productive crop, yielding €35,216 (US$38,250) per hectare, followed by tangerines (€18,236/ha or US$19,820), oranges (€10,635/ha or US$11,560), and carob (€4,742/ha or US$5,160). Demand in national and export markets continues to drive avocado expansion.
Exports remain dominated by citrus, which nearly doubled in value between 2017 and 2023, representing 70–80% of the Algarve's agricultural exports.
Carlos Marques, professor emeritus at the University of Évora, noted that crop productivity has risen, particularly for permanent crops such as citrus, due to expanded irrigation. He emphasized that water tariffs are likely to rise, making efficiency essential, while desalination would be too costly for the sector compared to reuse and local capture solutions.
Pedro Valadas Monteiro, vice-president of CCDR Algarve, highlighted that the Algarve is "by far, the region of the country that dedicates the largest share of investment to precision agriculture," which increases productivity and saves water.
Challenges include water scarcity, irrigation restrictions, and labor shortages. Proposed solutions include the construction of the Foupana and Alportel dams and linking Alqueva water to the western Algarve.
Labor dependence was also highlighted. José Macário Correia of CAP stated that "agriculture in the Algarve has grown thanks to Asian labor. If it weren't for them, I don't know who would be picking the oranges."
According to CCDR Algarve, agriculture remains a sector of specialization, combining citrus and nuts with newer crops such as tropical fruit, berries, and medicinal herbs. Of the €811 million GVA, 52% remains in the Algarve, supporting industry and commerce linked to agriculture.
Source: Sulinformacao