Market Challenges and Marketing Strategy of Olive Oil in Alentejo

Over the last years, Portuguese olive oil sector grew in area, production and productivity. This growth was accompanied by a change in production systems, technical assistance and commercialization/concentration processes and induced a positive trade balance. The main producing region that concentrates most of the olive groves area and olive oil production is Alentejo. Under the current market conditions, olive oil from Alentejo is competitive for two main reasons: the unitary cost of production and its quality standard. Two business models can be identified—in one of them olive oil is traded as a commodity, and in the other one companies differentiate their product with private brands. The main challenge for olive oil in Alentejo is to be recognized as the biggest contributor for the national strategy to positioning Portugal as the “sustainability hot spot” of the world’s olive oil market in the coming years. This chapter suggests the strategy basis to meet this challenge, identifying the main bottlenecks that should be avoided and proposing a management solution within the actual actors in the sector. The core of this strategy is the development of a volunteer olive oil sustainability programme for Alentejo.