"Portugal is a viable option inside the EU framework”

"The situation is getting impossible to be competitive in the Netherlands, Germany or the UK," says Osvaldo Branco with Horti Consultancy Portugal. "Labour costs, taxes, and energy are too high. In Portugal, the climate helps reduce the need for energy, and both labour and energy costs are only a fraction." With this in mind, he understands why Portugal is increasingly being considered as a location for high-tech greenhouse production, and with his consultancy company he wants to help growers set up a business in Portugal, and take advantage of the available EU and national subsidies. "You're still in the EU, the climate is favorable and the labor and energy costs are a fraction. And growers can get financial support in setting up their business."

"Portugal is not as warm as Southern Spain or Italy, where it's too hot for some crops. We have mild winters. From a climate perspective, it's one of the better spots in Europe", Osvaldo starts when asked about the opportunities for greenhouse growing in his country. In Portugal, he sees opportunities across a range of crops. "The average temperature is suitable for both greenhouse and open-field crops. Cabbages, Brussels sprouts, lettuce — all can be grown outside. But also for the greenhouse crops, we see a lot of opportunities." The Portuguese market is familiar with open-field and low-tech greenhouse production, such as for small berries and cut flowers, but is less accustomed to high-tech facilities. "That's where we see the potential is."

When asked about the preferred greenhouse type, Osvaldo notes that plastic is dominant. "High-tech plastic greenhouses. If you ask the agronomist Osvaldo, I say plastic works here. In the Netherlands, plastic can't handle the wind and snow. But in Portugal, high-tech double plastic greenhouses are standard — I've grown in them for 22 years. If a grower wants to invest in glass, that's also possible, but with the same investment you can get double the area in plastic. That's the economic side." It's an example of how he combines his agronomic background with his economic mind. "And the focus is eventually to get the grower the best revenues."

Although the main focus for growing in Portugal would be on exporting to other EU countries, there is also opportunity in the local market. Currently, Portugal imports a substantial amount of horticultural produce, including tomatoes, peppers, cucumbers, and lettuce. "There's demand, and freight costs from the Netherlands add another 25%. A tomato grower who starts operations here can achieve better pricing with far lower operational costs." Osvaldo also highlights the logistical and political advantages of Portugal. "It's a safe, stable EU country, with daily truck routes to the Netherlands. Transportation is cheap, and labour remains affordable at around 8 euros per hour. You don't need to go to Kenya or Tanzania to grow roses — Portugal is still a viable option inside the EU framework."

And then, there's the subsidies available. Osvaldo has worked on 15 subsidy-backed projects, combining his background in EU applications and Portuguese national subventions. One of the interesting programs still runs until 2027. "If a Dutch company wants to set up a production unit for peppers, for example, now is the time. For every million euros invested in greenhouse equipment, growers can potentially receive up to 50% back through combined support from Portugal and Brussels," he explains. Growers must establish a Portuguese company and acquire land. From there, Osvaldo's team, which includes a lawyer, an architect, a civil engineer and an economist, handles project development, legal compliance, and the funding application process. "I work with a lawyer, economist, and architect. We take care of the services needed to develop a viable installation and submit a competitive application dossier." He emphasizes that these opportunities won't last forever: the current program started last year will end in 2027. "It's the last train to catch for Benelux, German and UK companies regarding the European, national and local investment subsidies. The subsidies are tied to EU cohesion policy. They're available for regions with incomes below the EU average. That includes Portugal now, but not for much longer. After that, no one knows what will happen as it is EU agricultural policy, but the subvention levels will decrease significantly", he expects. Currently, Spain, southern Greece, and parts of Italy are also eligible. "But Portugal is still the most stable and connected."
© Horticonsultancy Portugal

Currently, Osvaldo and his team are working on two projects from international clients, of which one is looking for a proper location, and one is in the final stages of approval for the subventions. They participated in searching for the potential sites, with good location, logistics and infrastructure, helping them establish a Portugese branch, parts of the financing, and all the paperwork to submit the applications. "We've given them professional info and supported them all the way, have dealt directly in their name to the official permits and local authorities", he summarizes.

Osvaldo concludes, "We're not just talking about climate or labour. This is about access to the internal EU market, combined with support mechanisms that reduce upfront costs. For growers who want to future-proof their operations, it's time to consider the alternative: a fraction of the production costs, to produce out of season products, the quality that comes from higher photosynthesis, higher sugar content of the flowers and fruits, and finally to produce locally for a 60 million consumer neth import market in Portugal and Spain. All still inside the EU."

For more information:
HORTICONSULTANCY Services
Osvaldo Branco, agronom M.Sc
Estrada da Arregaça N27
2510-651 - Óbidos - Portugal
osvaldobranco@horticonsultancypt.com
+351 967355697 (WhatsApp Nr)