Agriculture in Portugal is based on small to medium-sized family-owned dispersed units; however, the sector also includes larger-scale intensive farming export-oriented agrobusinesses backed by companies (like Grupo RAR's Vitacress, Sovena, Lactogal, Vale da Rosa, Companhia das Lezírias and Valouro).

Portugal produces a wide variety of products, including green vegetables, rice, corn, wheat, barley, olives, oilseeds, nuts, cherries, bilberry, table grapes and edible mushrooms.

With the principal exception of the alluvial soils of the Tagus River valley and the irrigated sections of the Alentejo, crop yields and animal productivity remained well below those of the other European Community (EC) members.

Agricultural productivity (gross farm output per person employed) was well below that of the other West European countries in 1985, at half of the levels in Greece and Spain and a quarter of the EC average.

Third, the collective farms set up in the south after the 1974–75 expropriations following the military coup of 25 April 1974, proved incapable of modernizing, and their efficiency declined.

With the reform of CAP, a significant reduction in the number of producers through consolidation (especially in the Norte and Centro regions) resulted in the end of traditional, subsistence-like based agriculture.

Wine, table grapes, leaf vegetables, dairy, tomatoes for processing, rice, sugar beets, mushrooms, cork and olives are competitive.

[10] The European Union recognises the following Portuguese Protected Designation of Origin beef brands:[11] Portugal produces a wide variety of cheeses.

These include the Azeitão, Cabra Transmontano, Castelo Branco, Nisa, Pico, São Jorge, Saloio, Santarém, Serpa and Serra da Estrela cheeses.

Pêra Rocha (pears), Maçã de Alcobaça (apples), Cova da Beira's cherries, a number of chestnut producing regions, and the Laranja do Algarve (oranges), are examples of well-known Portuguese certified products.

Pork meat is often served with acorns and white truffles that are commonly found in the large oak grove (genus Quercus) of the country.

The quality and great variety of wines in Portugal are due to noble castas, microclimates, soils and proper technology.

Official designations:[13] Among the largest companies in the agricultural and agribusiness sector of Portugal are such examples as Grupo RAR (owner of Vitacress), Companhia das Lezírias, Vale da Rosa, Sovena Group, Sumol + Compal, Sogrape, Derovo, Frulact, Amorim, Delta, Valouro and Lactogal.

Local manufacturers felt the squeeze on profit margins as big retailers preferred to cut costs by buying from neighboring countries.

The European Union, South America, the Middle East and China also compete with dried fruits, tree nuts, pulses and prepared product markets.

The food distribution structure includes wholesalers, retailers (hypermarkets, supermarkets, cooperatives, small businesses, convenience stores), institutions and associations.

The farmers’ sudden interest in organic agriculture clearly has to do with the financial support offered by the European Union and higher market prices.

However, these positive factors for the expansion of organic production may not be enough to guarantee a continuous increase in the future, since several obstacles hinder the farmers’ performance.