Wheat and meslin flour market in Portugal

Earlier Report Observations

The wheat and meslin flour market in Portugal experienced a gradual contraction in physical volume from over 700 thousand tonnes in 2018 to around 639 thousand tonnes in 2021. This decline was initially influenced by the market's structural dependence on wheat imports and was subsequently exacerbated by global supply chain disruptions during the COVID-19 pandemic in 2020. Further pressure came from significant volatility in global wheat prices and export interruptions from key regions like Ukraine and Russia in 2021, which affected availability and costs.

Market volume stabilized and saw a modest recovery to 657 thousand tonnes by 2023. This turnaround was supported by a shift in consumer demand towards higher-quality and specialized flours, such as enriched and wholemeal varieties, which stimulated production. Concurrently, adverse weather conditions in 2022 severely impacted domestic wheat harvests, increasing reliance on imports and contributing to rising production costs. These cost pressures, along with higher global commodity prices, drove the market value to peak at $357 million in 2022, before settling at $341 million in 2023.

Throughout the period, traditional milling companies like Fipal and Moagem do Loreto maintained their market positions through continuous investments in modernizing production facilities. National and European Union policies, particularly the Common Agricultural Policy (CAP), aimed at promoting sustainable practices and increasing the incorporation of domestic wheat, provided a consistent framework for the industry, even as it navigated external shocks and evolving consumer preferences.

Production wheat and meslin flour in Portugal

In value, 2018-2021, M $ US

After two years of decline, wheat and meslin flour production in Portugal increased in value. In 2021, output reached 249.9 million US dollars, up 4.7% from the previous year. However, over the 2018-2021 period, production fell by 3.1%, with an average annual growth rate of 1.0%. The lowest value was recorded in 2019 at 238.7 million US dollars, with the largest decline of 4.1% occurring that year.

Annual dynamics of production in Portugal in value, 2018-2021, M $ US

In kind, 2018-2021, K t

Portugal's wheat and meslin flour production declined for the third consecutive year in volume terms. In 2021, output was 587.5 thousand tonnes, down 7.7% from the previous year. From 2018 to 2021, production decreased by 16.2%, equivalent to an annualized rate of 5.7%.

Annual dynamics of production in Portugal in kind, 2018-2021, K t

Exports wheat and meslin flour from Portugal

Exports in kind, t

Wheat and meslin flour exports from Portugal fell for the third straight year in volume. In 2021, exports totaled 45,304 tonnes, a sharp decline of 27.6% year-over-year. Over the 2018-2021 period, exports dropped by 52.1%, with an average annual decrease of 21.8%.

Annual dynamics of product's exports from Portugal in kind, 2018-2021, t

From 2018 to 2021, Spain and Angola each accounted for 38.5% of Portugal's wheat and meslin flour exports by volume, while Sao Tome and Principe made up 10.0%. Together, these three countries represented 86.9% of total export volume.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Portugal in kind, 2018-2021

Exports in value, K $ US

Wheat and meslin flour exports from Portugal declined in value for the third consecutive year. In 2021, export value reached 20,890 thousand US dollars, down 16.7% from the previous year. Between 2018 and 2021, exports fell by 43.3%, equating to an annualized rate of 17.2%.

Annual dynamics of product's exports from Portugal in value, 2018-2021, K $ US

In the 2018-2021 period, Spain was the top destination for Portugal's wheat and meslin flour exports by value, accounting for 39.4%, followed by Angola at 38.0% and Sao Tome and Principe at 9.5%. These three markets combined represented 87.0% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Portugal in value, 2018-2021

Imports wheat and meslin flour to Portugal

Imports in kind, t

Portugal imported approximately 96,652 tonnes of wheat and meslin flour in 2021, a slight decrease of 2.3% from 2020. Over the 2018-2021 period, imports fell by 2.9%, with an average annual decline of 1.0%. The lowest volume was recorded in 2019 at 89,680 tonnes, with the largest drop of 9.9% occurring that year, while the largest increase of 10.3% was seen in 2020.

Annual dynamics of product's imports to Portugal in kind, 2018-2021, t

From 2018 to 2021, Spain was the dominant source for Portugal's wheat and meslin flour imports by volume, accounting for 94.9% of total imports.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Portugal in kind, 2018-2021

Imports in value, K $ US

Wheat and meslin flour imports into Portugal increased in value for the second consecutive year. In 2021, imports reached 40,424 thousand US dollars, up 10.2% year-over-year. Over the 2018-2021 period, imports grew by 20.3%, with an average annual rate of 6.3%. The lowest value was recorded in 2019 at 31,461 thousand US dollars, with the largest decline of 6.4% that year, while the largest increase of 16.6% occurred in 2020.

Annual dynamics of product's imports to Portugal in value, 2018-2021, K $ US

From 2018 to 2021, Spain consistently accounted for 89.1% of Portugal's wheat and meslin flour imports by value, indicating high market concentration, with the remainder shared among other countries.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Portugal in value, 2018-2021