Alentejo - Economy

Economy

The area is commonly known as the "bread basket" of Portugal, a region of vast open countryside with undulating plains and rich fertile soil. With very few exceptions all the major towns are mainly reliant on agriculture, livestock and wood. There are several types of typical cheeses, wines and smoked hams and sausages made in Alentejo region, among these: Queijo de Serpa, Queijo de Évora and Queijo de Nisa (cheeses); Vinho do Alentejo and Vinho do Redondo (wines); and presunto (ham). Marble, cork, olive oil and mining industries are other important activities in the region. The Alqueva dam is an important irrigation and hydroelectric power generation facility which supports a part of Alentejo's economy.

The region is the home of the world's most important area for the growing of cork. Cork-oak, known in Portugal as "sobreiro", has been grown commercially in the region for the past 300 years, with the areas between the trees typically given over to grazing, or on the more productive soils, to the growing of citrus fruit, vines or olives. As a consequence, a uniquely rich and varied eco-system has developed. The bark of the cork-oak is still harvested by teams of men using locally made hand-axes. No mechanical method has yet been invented that will allow the harvest to be achieved as effectively. The stripping of the bark is performed only in mid summer, when the bark can be removed more easily. The cork-oak is the only tree known that will allow this regular stripping of bark without damage. The harvest of one mature tree provides sufficient bark to produce about 4,000 wine bottle corks. The industry provides employment for about 60,000 workers. In 2006, the region had an estimated GDP per inhabitant rating of 17,200 EUR.