Investing in Portugal

Investing in Portugal
Agriculture, Fishing and Food Industry
2016
Content
Why Portugal
Agriculture, Fishing
Food industry
aicep Portugal Global
2
PORTUGAL IS A BUSINESS OPPORTUNITY
Why choose
Portugal?
Strategic location
Portugal is the European nearest country to the U.S.
3-hour distance between Brazil and Russia.
Same time as UK and Ireland.
Attractive Consumer Market
Portugal
Iberian Market
10,4
51
European Market
494
Portuguese Speaking countries
220
Great and privilege economic relations
between Portugal and Brazil, Angola and
Mozambique.
Daily flights to major European cities.
Million Inhabitants
Why choose
Portugal?
Qualified Workforce
Flexible labour lawHigh-standard educationWide availabilityPartnerships with world-class US institutions
► Mathematic performance:
• English learning is mandatory from elementary school;
• Students enrolled in lower secondary level (Eurostat 20052012):
• 86% learn English (96% in EU28)
• 57% learn French (34% in EU28)
• 22% learn Spanish (12% in EU28)
• 78% of the students learn 2 or more foreign languages
(65% in EU28, 53% in France or 42% in Spain).
- above OECD: 19.6%, PISA 2012 (OECD
average of 14.8%);
► English performance:
- Portugal has the 9th highest score in
English tests (among EU28, TOEFL 2013);
► Management School Performance:
- Quality of Management Schools: Portugal
ranks #4 (among144 countries, GCR 20142015, WEF)
Why choose
Portugal?
Business Friendly Environment
EASE OF DOING BUSINESS
MULTI-CULTURAL
• Ease of Doing Business Rank: # 25 (out of 189
countries, World Bank DB 2015)
• Tax Reform: Reduction of corporate income tax from
23% to 21% in 2015;
• Labour Reform: increased the duration of fixed-term
contracts, reduction of severance pay, new lay-off rules;
• Time to set up a business: less than 1 hour;
• Major public services are on-line and several legal
obligations have been eliminated, simplified.
Source: IMD, WCY 2013, Cultural Openness
• Portugal is TOP 4 in Cultural
Openness (IMD, 2013);
• Portugal is very open to foreign
cultures: the availability of international
schools, the safety record and quality of
life attract expatriates;
• As a result, Portugal is ranked #2 in
the Migrant Integration Policy
Index 2011 (MIPEX III).
Government Support
CORPORATE TAX
REFORM
INCENTIVES AND
GRANTS
PRODUCTIVE INVESTMENT
- Statutory Corporate tax rate
reduction from 23% to
21% (Euro Area average is
26.5%)
FINANCIAL – Targeting innovation: new products
or services, methods or processes. Interest-free
loan of 35% of eligible expenses and possible
cash grant upon performance up to 50% of the
loan.
- Reduced rate for SME (first
€15.000): 17%
TAX - Corporate income tax credit from 10% up to
25% of eligible expenses, during a 10-year period.
JOB CREATION
INCENTIVES
INTERNSHIPS
- Monthly subsidy, work insurance
and meal allowance;
“ESTÍMULO” EMPREGO
- Financial wage-related incentives
up to 12 months for unemployed
people;
R&D INVESTMENT
- Top Corporate tax rate to be
17% in 2018 from the
current 31,5%
FINANCIAL – Targeting R&D activities to develop
new services and products. Cash grant up to 1M€
and if exceeding that amount, 25% loan and 75%
as a cash grant.
TAX - Corporate income tax credit from 32,5% of
eligible expenses and an incremental rate of 50%
of the increase in expenses, up to € 1,500,000 (for
established companies).
SOCIAL SECURITY
- Exemption (for 36 months) of
social contributions
- Young (first job) or long term
unemployed people (> 12 months)
- Permanent labor contracts only.
Why choose
Portugal?
They chose us
“‘(…) With their outstanding expertise in
precision engineering, our Portuguese
colleagues have made a considerable
contribution to Leica Camera’s success story.”
Andreas Kaufmann, Chairman of the Supervisory
Board, Leica AG
“At HB Fuller, our expanding Portuguese team
has quickly gained a reputation for
professional expertise, high energy, quick
learning and cross-functional teamwork. I am
delighted by the quality of the people we can
attract and how fast they have developed.”
Malcolm Grey, Finance Director EIMEA, H.B. Fuller
Europe
Agriculture, fishing and
Food industry in Portugal
Agriculture, fishing
and Food industry in
Portugal
Main factors
GDP
4.1 %
Employment
12 %
Agricultural area
3668 (1000 Ha)
Sources: Globalagrimar, 2012
Ministry of Agriculture, 2013
Highlights
Today, agriculture and agro-industry have emerged as Portugal’s fastest-growing export
sector and a very significant area to have created jobs.
Growing influx of highly qualified professionals into farming, agribusiness and food
technology
Agriculture, fishing
and Food industry in
Portugal
Fresh and concentrated
tomato
Olive Oil
Meat
Companies
441
Companies
7
Companies
615
Direct Jobs
1 205
Direct Jobs
500
Direct Jobs
15 839
26
World Export rank
4th
GVA (M€)
Turnover (M€)
243
Processed Tomato
(tons; 2014)
1 200 000
Turnover (M€)
2 168
Export (tons)
128 374
Export (tons)
353 466
Export (tons)
134 775
Exports (M€)
372
Exports (M€)
224
Exports (M€)
319
GVA (M€)
Oils, Fats and olive oil refining not included
304
Figures include slaughtering, preserved
meat and meat processing
Some relevant brands
http://www.casadoazeite.pt/
Sources: Fronteie, SCIE and INE,CIP, Portugal Foods
Agriculture, fishing
and Food industry
in Portugal
Dairy products
Bakery and Confectionery
Coffee and Tea
Companies
344
Companies
55
Companies
224
Direct Jobs
6 092
Direct Jobs
2 814
Direct Jobs
2 274
GVA (M€)
Turn over (M€)
214
1 456
GVA (M€)
155
GVA (M€)
Turn over (M€)
659
Turn over (M€)
53
220
Export (tons)
303 154
Export (tons)
11 643
Export (tons)
89 984
Exports (M€)
283
Exports (M€)
59
Exports (M€)
187
Some relevant brands
Sources: Fronteie, SCIE and INE,CIP)
Agriculture, fishing
and Food industry in
Portugal
Fruits, Vegetables
and Flowers
Water, soft drinks
and juices
Beer
Companies
228
Companies
70
Companies
12
Direct Jobs
150.000
Direct Jobs
3 692
Direct Jobs
2 041
GVA (M€)
Turn over (M€)
n.a.
2.300
GVA (M€)
154
GVA (M€)
175
Turn over (M€)
756
Turn over (M€)
821
Export (tons)
764 834
Export (tons)
327 953
Export (tons)
289 221
Exports (M€)
695
Exports (M€)
201
Exports (M€)
235
Source: Portugal Foods
Sources: Fronteie, SCIE and INE,CIP
Some relevant brands
Agriculture, fishing
and agro-industry in
Portugal
Fresh fish
Dried and canned fish
Frozen fish
Companies
3 683
Companies
81
Companies
23
Direct Jobs
12 249
Direct Jobs
4 671
Direct Jobs
665
GVA (M€)
16
GVA (M€)
193
GVA (M€)
Turn over (M€)
757
Turn over (M€)
91
674
Turn over (M€)
110
Export (tons)
111 694
Export (tons)
67 449
Export (tons)
79 037
Exports (M€)
431
Exports (M€)
271
Exports (M€)
176
It includes molluscs and crustaceans
Relevant brands
Sources: Fronteie, SCIE and INE,CIP
Agriculture, fishing
and Food industry in
Portugal
9 M€ - SOVENA - New olive oil Mill
200 jobs created
A project design by architect Ricardo Bak Gordon, it is a hallmark of
modernity in the Portuguese market and a new era in olive oil
9 M€ - Avanca new breakfast
cereal production line
311 jobs retained
8,5 M€ - Nestlé Waters Direct Portugal SA
Coruche New production and distribution center
10 jobs created - 213 jobs retained
19,5 M€ - Cerealis new production line for breakfast cereals, pasta and biscuits
26 jobs created - 346 jobs retained
Agriculture, fishing
and Food industry in
Portugal
Main Bodies
Pólo de Competitividade e Tecnologia Alimentos,
Saúde e Sustentabilidade
ANCIPA – Associação Nacional dos Comerciantes
e Industriais de Produtos Alimentares
www.portugalfoods.org
www.ancipa.pt
Portugal Fresh – Associação para a Promoção
das Frutas, Legumes e Flores de Portugal
APIC – Associação Portuguesa dos Industriais de
Carnes
http://portugalfresh.org/
www.apicarnes.pt
Cluster Agro-Industrial do Ribatejo
www.agrocluster.com
Cluster Agro-Industrial do Centro
www.inovcluster.com
FIPA - Federação das Industrias Portuguesas
Agro-Alimentares
www.fipa.pt
Associação Nacional dos Industriais de
Lacticínios
http://www.anilact.pt/
Fenelac - Federação Nacional das Cooperativas
de Produtores de Leite
http://www.fenalac.pt/
Casa do Azeite - Associação do Azeite de Portugal
http://www.casadoazeite.pt/
Agriculture, fishing
and Food industry in
Portugal
Main Bodies
Federação Nacional das Cooperativas de
Olivicultores, FCRL
Associação Portuguesa dos Industriais de
Águas Minerais Naturais e de Nascente
http://www.apiam.pt/
http://www.confagri.pt/Associadas/Federacoes/fenazeites/
Associação Portuguesa dos Produtores de
Cerveja
Confederação das Cooperativas Agrícolas e do
Crédito Agrícola de Portugal
http://www.apcv.pt/asp/
http://www.confagri.pt/
VINIPORTUGAL – Associação Interprofissional
para a Promoção dos Vinhos Portugueses
Centro de Estudos e Promoção do Azeite do
Alentejo
www.viniportugal.pt
http://www.azeitesdoalentejo.com/
Associação Nacional dos Avicultores Produtores
de Ovos
http://www.anapo.pt
AEVP – Associação das Empresas de
Vinho do Porto
www.aevp.pt
Instituto dos Vinhos do Douro e Porto
www.ivdp.pt
Associação Portuguesa de Bebidas Refrescantes
Não Alcoólicas
http://www.probeb.pt
IVV – Instituto da Vinha e do Vinho
www.ivv.min-agricultura.pt
Agriculture, fishing
and Food industry in
Portugal
Main Bodies
ANCEVE - Associação Nacional dos Comerciantes
Exportadores de Vinhos e Bebidas Espirituosas
www.anceve.pt
AVEPOD - Associação de Viticultores
Engarrafadores dos Vinhos do Porto e Douro
http://codigopostal.ciberforma.pt/dir/empresa2.asp?emp=
14924
ADVID – Associação para o Desenvolvimento
da Viticultura Duriense
www.advid.pt
Anicp - Associação Nacional dos Industriais de
Conservas de Peixe
[email protected]
Federação Nacional dos Apicultores de Portugal
http://www.fnap.pt
Associação Nacional dos Indutriais de Tomate
http://www.hotfrog.pt/Empresas/Associac-o-Nacionaldos-Industriais-de-Tomate
AIB – Associação dos Industriais do Bacalhau
http://www.aibportugal.com
Associação Nacional dos Industriais de Arroz
ALIF – Associação da Indústria Alimentar pelo
Frio
http://www.alif.pt
ACOPE - Associação dos Comerciantes de
Pescado
http://www.acope.pt
http://www.ania.pt/
APIM-Associação Portuguesa de Indústria de
Moagem e Massas
http://www.pai.pt/apim-associacao-portuguesa-de-industria-demoagem-santa-maria-dos-olivais-1950-406
www.up.pt
www.ipb.pt
Agriculture, fishing
and Food industry in
Portugal
Main universities and colleges
www.ipb.pt
www.isep.ipp.pt
www.ua.pt
www.uminho.pt
www.utl.pt
www.ucp.pt
www.ipiaget.org
www.ibet.pt
www.up.pt
http://www.isa.utl.pt
http://www.utad.pt
http://www.esav.ipv.pt/
http://www.uevora.pt/
http://si.esa.ipsantarem.pt/esa_si
http://portal.esac.pt
http://esa.ipb.pt/
http://www.ipcb.pt/ESA/
http://www.ipportalegre.pt
http://portal.ipvc.pt/port
al/page/portal/esa
Business
Opportunities
Agriculture, fishing
and Food industry in
Portugal
Business Opportunities
• Seeds producers
• Cereal’s production: Soy, Corn, Wheat, Rice, Malt
• Dry Fruits: almonds, peanut, hazelnut
• Powdered milk
Alentejo
A suitable geographic location
Located in the South of
Portugal, it borders the Atlantic
Ocean to the West, Algarve
Region to the South and
Spanish Estremadura and
Andalusia to the East.
The Alentejo
is one of
the most
emblematic
regions of
Portugal.
Alentejo
A suitable geographic location
Excellent infrastructures
When it comes to making businesses move, we have what it takes.
By air, sea or land we have the most advanced solutions you need.
Airports & Seaports
Setúbal
Sines

Beja
Roadway
Railway
Alentejo
A suitable geographic location
Science and knowledge
Examples of regional Centres of Excellence for Demonstration, Experimentation and Investigation
http://www.inrb.pt
http://www.uevora.pt/
The Instituto Nacional de Recursos
Biológicos, I.P. (INRB, I. P), is a state
laboratory which includes the former state
laboratories LNIV and INIAP. Its mission is
to pursuit research in the domain of
biological resources. As such, its policies
aim to protect and to add value to the
Portuguese biological resources and to
back-up Portuguese policies internally and
towards the European Union.
CEBAL is located in the campus of
the Polytechnic Institute of Beja,
where it currently holds four
laboratories (Molecular Biology,
Biochemistry, Chemistry and
Processes) and four rooms/offices
http://www.ipbeja.pt/
http://www.ipportalegre.pt
Degrees Offer
1st Cycle Degrees
• Biology
• Agronomic Engineering
• Food Engineering
• Agronomy
• Biochemical
• Biotechnology
• Bioengineering
• Environment
Engineering and Biology
• Chemical Engineering
and Biochemical
http://www.cebal.pt
2nd Cycle Degrees
• Integrated Agrarian
Production
• Environment
Technologies
• Sustainable
Management of the
Agricultural Spaces
• Biological Farming
• Chemical Environment
Analyses
• Analytical Chemistry
• Sustainable Farming
• Chemical Technology
http://www.cotr.pt
CEBAL aims to be a strategic
infrastructure for the development of
high-quality research, technology
transfer and innovation in the fields of
biotechnology applied to agro-forestry,
food processing, livestock, environment
and valorization of waste streams, with
a special focus at addressing specific
scientific/technological problems
originating from the region of Alentejo.
The Centro Operativo e de
Tecnologia de Regadio - COTR
- is an association without
lucrative ends and aims to
promote the rural development,
namely the conversion of rain fed
agriculture into irrigated
agriculture.
Alentejo
A suitable geographic location
Potential for Agricultural Development
Excellent Geographic Conditions
Flat Rolling Plains
Favourable Climatic Conditions
High Quality Soils
High temperatures and long frost free
periods
Average temperature (16,2ºC) circa 2ºC
over national average
High solar exposure and potential for light
radiation
Sun light hours (2.814 hours/ year)
around 13% over national average
Low rainfall
Low levels of rainfall (582 mm/year),
concentrated on the colder months
and rare in the Spring/Summer
Untapped agricultural potential with its Mediterranean climate offering scope for the
growth of two crops per annum
Alentejo
A suitable geographic location
Two different suitable sub regions in Alentejo, one located near the Atlantic Ocean and another in the area of
influence of Alqueva lagoon
Mira Irrigation System
Alqueva Irrigation System
BACKGROUND OF EXCELLENCE TO SUPPORT AGRICULTURE
Alentejo
A suitable geographic location
Irrigation Basin of the Mira River
Excellent conditions offered;
with water aplenty and the highest amount of sun-hours;
High productive potential for horticulture (vegetable, small fruits and ornamental cultures): 12 months year;
ideal for large, environmentally respectful projects.
Specific guidelines have been set for the Mira Basin
Total allowable greenhouses surface;
Recommended size for greenhouses;
Dispositions for management of liquid and solid wastes;
Maximum allowable non-productive construction area;
Dispositions for nutrients and pesticides management;
Dispositions for irrigation and drainage management;
Environmental certification is foreseeable for producers that meet the standards specific to the Mira basin. This certification will
demonstrate both the quality and safety of products and the commitment of producers to environment.
The Alentejo coast offers
Suitable climate
Light Radiation
Moderate rainfall
Ocean cooling
Moderate temperature
Average frost occurrence year = 0 days at 0-15 km from coast
High quality soils
Sandy soils with only 5 to 10% of clay
Alentejo
A suitable geographic location
Irrigation Basin of the Mira River
Irrigation area = 12.000 ha
Average cost of water for direct use on the land:
Water = from 0,0206 € up to 0,0426 € per
Area = from 27,08 € up to 52,49 € per hectare
(detailed information on slide 12)
Examples of Crops production in the area:
Maize
Vegetables
Carrot
Potatoes
Beet
Turf grass
Fruits
Alentejo
A suitable geographic location
Irrigation Basin of the Mira River
Natural Park of
Southwest Alentejo
and Vicentina Coast
Irrigation Basin
of the Mira River
Infrastructures
2 Dams
Santa Clara Dam
11052011 =
485 836 840 ( 100,17%)
Corte Brique Dam
11052011 =
1 640 319 ( 100,33 %)
Four pumping stations
598 km of channels
Alentejo
A suitable geographic location
Irrigation Basin of the Mira River
Water supply is warranted and competitive
Water (m3)
Area (ha)
ABMIRA Members
Others
ABMIRA Members
Others
Gravity Irrigation for IBMR area
0,0196 € - 0,0282 €
0,0203 € - 0,0293 €
31,69 € - 57,04€
33,27 € - 58,62€
Gravity Irrigation outside IBMR area
0,0297 € - 0,0428 €
0,0306 € - 0,0441 €
--
--
Pressure Irrigation
0,0316 € - 0,0582 €
0,0333€ - 0,0612€
45,70 €
47,98 €
27,08 € ha
Intensives culture tax
Source: ABMIRA (2012), lower prices for ABMIRA associates
Major Producers in the area
Company
Origin
Year of
creation
Area
(ha)
Production
Bambuparque
FR
1991
27
Bamboo - http://www.bambuparque.com/
Camposol
UK
1992
500
Grass, turntip, carrot, palm tree production - http://www.camposol2.com/
Monte Novo
PT
1993
53
Strawberry, Raspberry, Blackberry
Frupor
NO
1987
162
Chinese cabbage production and large variety of decorative greens for cut foliage
industry - http://frupor.com/
Iberian Salads
UK
1983
500
Watercress, rocket, baby leaf salads and specialty vegetables
http:www.vitacress.com.uk
(PT at the present)
Berryport Lusomorangos
US
2004
200
Strawberry, Raspberry, Blackberry
Wellpict
UK
1996
100
Strawberry
Alentejo
A suitable geographic location
The Multipurpose project in Alqueva (EFMA).
Star in 1997 with the development of the major dam
Investment until September 2014:
Water
Agri-Food
2,107.19 M Euros
Renewable Energy
Tourism
Alentejo
A suitable geographic location
The region has to offer excellent conditions:
High potential for agricultural development
High Security monitoring System
Proximity to the Markets
Attractive conditions for agro-industrial processing
Excellent Infrastructures
Talent pool availability
Alqueva
Irrigation
System
BACKGROUND OF EXCELLENCE TO SUPPORT AGRICULTURE
Alentejo
A suitable geographic location
Potential for Agricultural Development
Usable
agricultural
surface (SAU)
Average
dimension
Irrigated Area
2,147 thousands hectares;
Widespread Availability of
Agricultural Land Plots;
Average Usable Agricultural
surface is 12 há per land plot.
64 thousands hectares (8.5% of
Usable agricultural surface )
Average Dimension
of the Farms
Alentejo
A suitable geographic location
The Alqueva lagoon is the biggest artificial water “mirror” of Europe (250km² of surface, 83 km of length,
1160 km of shore) and gives Alentejo a sea of opportunities.
Irrigation area = 64 thousand ha
The Global Watering System of Alqueva will increase
irrigated land by 120 thousand ha
The distribution system is undertaken by independent
sub-systems: Alqueva (64 thousand ha), Pedrogão
(24 thousand ha), Ardila (30 thousand ha)
Development of irrigated cultures
Increase of agricultural productivity
in the region
Alentejo
A suitable geographic location
Infrastructures
15 Dams
314 km of open channels
9 major pumping stations
56 secondary pumping stations
31 water reservoir
2.240 km of close channels
1.000 km of drainage networks
Alentejo
Alqueva Irrigation System
EDIA - The Alqueva Development and Infra-structure
Company it’s responsible for the development and
exploration of the Multipurpose project in Alqueva (EFMA).
New Irrigation area = 110.000 ha
Average cost of water for direct use on the land:
0,089 € per m3 (high pressure irrigation)
To promote the potential of agriculture development in the areas under influence of Alqueva Irrigation System the tollprogram
SISAP – Support System to Determine the Cultural Aptitude was developed to EDIA by the “Instituto Superior de
Agronomia – Universidade Técnica de Lisboa” in order to organize all the information and relevant methods to achieve the
cultural aptitude to areas under this new irrigation system.
The purpose of this programme is presenting a geographical map as a final result which is associated to a table where the
areas that belong to each cultural aptitude category are showed:
- Null aptitude for the crop;
- Reduced aptitude for the crop;
- Moderate aptitude for the crop;
- Good aptitude for the crop.
The SISAP can also give economic crop information, enabling the user to know
for a specific soil, crop and technology the significant economic indicators;
For each technology, SISAP allow the user to know the carbon and energy
balance.
Alentejo
Alqueva Irrigation System
SISAP – Support System to Determine
the Cultural Aptitude
An Innovative Tool
Dynamic system
All the data base can be easily changed;
ArcGis is the support software, which allow us to compatible the results and data base with other results and information;
Allow new information, criteria and mechanisms incorporation easily;
Data base protection;
Work in different geographical scale.
SISAP – Data Base
Soil map
Slope map
Climatologic Net
Crop Requests:
pH, effective thickness, conductivity, texture, hydromorphism;
Slope;
Minimum Temperatures, Maximum temperatures, frosts, thermic
integrals, precipitation, cold hours;
Database, namely soil information and crop request has been validated with technical experts
Alentejo
Alqueva Irrigation System
Crop potential
Crop
Area in 2015 (ha)
Potential
Production (tons)
Beans
22.700
36.271
Carrot
5.000
140.000
Chick peas
30.000
60.000
Garlic
17.400
205.000
Lettuce
22.000
352.000
Maize
48.000
537.600
Melon
31.000
806.000
Onion
15.200
425.600
Pea
31.500
151.200
Peach
23.000
184.000
Potatoes
8.100
259.200
Tomato
47.000
2.820.000
Wheat
26.800
107.200
Alentejo
A suitable geographic location
BACKGROUND OF EXCELLENCE TO SUPPORT BUSINESS
Alentejo is the place, the climate and nature
Accessibility
Talent pool availability
Transport
Infrastructures
Operational Support
Services
Sunny throughout the region, practically year round
aicep Portugal Global
aicep Portugal Global
Who are we?
Mission
Values
We are a Business Development Agency, focused on the
development of a competitive business environment that
contributes to the international expansion of the Portuguese
Economy.
Increasing the country’s competitiveness, promoting large
private investment and fostering the internationalization of
Portuguese companies.
Focus on clients. We serve our clients in accordance to their
requirements through various solutions and long-term relationships.
Selectiveness. We direct our activity towards projects and markets
that make a better contribution to company competitiveness and the
sustainability of the Portuguese economy.
Excellence. We seek to exceed expectations by means of a rigorous
approach, effectiveness, enthusiasm and a willingness to innovate.
42
About Us
aicep Portugal Global: how can we help you?
1
2
3
4
PreInvestment
Incentives
Negotiation
Settling In
After Care
Single point of contact
in all phases: preinvestment,
incentives
negotiation, settling in
and after care
Promoting a direct negotiation
with companies, through which a
tailored approach to incentives
may be applied in order to define
a global package that fully
satisfies the investor's needs
Dynamic
approach
focused on the
client or investor
Government
business entity,
flexible, free of
charges and
streamlined services
43
Filipe Costa
Trade & Investment Commissioner
Consul for the Economic and Commercial Affairs
Consulate General of Portugal in San Francisco
E-mail: [email protected]
www.investinportugal.pt