Chaves Municipality, Portugal - Economy

Economy

Agriculture and services are still the main sources of income. The traditional prosperity of Chaves comes, mainly, from a highly fertile plain, nine kilometres long and three to five wide, referred to as the"veiga". Since the land can be irrigated with canals there is intensive farming of potatoes, corn, rye, hay, while plots of vegetables are also commonplace in the local market. The main canal begins near Vila Verde da Raia and crosses the valley on the right bank of the Tâmega as far as Nantes. On the whole, the land is made up of small plots that are rarely economically viable. There is some dairy farming, and a milk production unit on the south side of town, but few cows can be seen in the valley. In general most of the farmers are of retirement age and farming is often pursued more as a hobby than as a profession.

In addition to agriculture there are some small industries producing glass, tiles, and food products. Like Vila Pouca de Aguiar, located thirty kilometres south, this is a land of granite; there are several granite extraction and finishing industries located in Chaves, in addition to three brickworks, located on the south side of the city. Further, two mineral water plants, located in Vidago, belong to the municipality.