The Economy in Chaves

Tras-os-Montes is an economically depressed region.  On the Synthetic Indicator of the Intensity of Regional Problems (see Population) the districts of Bragança and Vila Real occupied a position of 30 out of 100.  The overall economic situation is one of a poorly educated and aging population still dependent on the primary sector and an absence of major industry that might attract a labor force and stem the tide of emigration.  We can divide the economic sector into agriculture—made up of the very lucrative table wine trade in the south of the district of Vila Real, potatoes grown especially in the valley of Chaves, the traditional crops of corn—for raising pigs--, wheat, rye, barley, beans, and garden vegetables for sale in local markets.  There are also localized plantations of apple trees, pear trees, peach trees, and olive trees in the Mirandela area, some cork, and almond trees in the region of the upper Douro.  The region of Carrazedo de Monenegro is especially famous for production of chestnuts.  There is also an extensive area of planted forest, pine and some eucalyptus, with wood being used for industry.  In recent years this forest has suffered serious damage due to fires and little wood is now being extracted.

The raising of animals is still important.  In 1960 there were 410,000 sheep, 110,000 pigs, and the same number of cows.  Pig raising has become a lucrative industry because of high prices for ham and sausages.  The regions of Mirandela and the Barroso are also famous for their beef cattle, with the meat fetching a high price.  The cattle- raising is intensive, for lack of space and good pasture, and the calves are sold to the market for sale as veal.  In 1960 there were still 100,000 goats, but this has dropped dramatically.  Goat meat in restaurants is a treat and fetches a high price.

A cattle fair sometime in the middle of the Twentieth Century.  The only time cattle are seen now is  at the Feira dos Santos

The Veiga
The traditional prosperity of Chaves comes, mainly, from a highly fertile plain, nine km. long and three to five wide.  Since the land can be irrigated with canals there is intensive farming, mainly of potatoes, corn, rye, hay, and plots of vegetables for sale in the local market.  There is one main canal which 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.       

There are also some vineyards but this region is not famous for its wines.  The Chaves cooperative does make a drinkable wine but consumption is mainly local.  Vines are old, often diseased, and sadly covered with weeds for lack of workers to tend to them.  

Olive trees can sometimes be seen on the hillsides but they are fast disappearing.  Olive oil production has long ago moved to the area around Mirandela where the land and climate are more suitable.  Producers who insist on picking the olives say they have to pay to produce olive oil.  They also complain of olive oil coming in from Spain at lower prices.    

One of the most impressive scenes in Chaves is to walk down a country lane in the Veiga and have to step into the fields as a herd of sheep passes by.  Surprisingly, in this day and age there are still shepherds willing to spend long hours standing in one position looking at their sheep.  Not surprisingly, few young people are willing to do this kind of job so it is a profession that will eventually disappear.  

Mining and Industry

The province was from Roman times the object of mineral explorations.  Gold was one of the first metals to be sought after and there were important mines in Campo de Jales, near Vila Pouca.  These have now been abandoned.  Tin, wolfram, antimony, lead, and manganese have some extractive activity, but we can conclude that there are no major mines in the area. There are still large granite deposits, especially near Chaves and Pedras Salgadas, and much of this is exported to Spain.  Mineral water is another promising industry.  Portugal’s most famous bottled water, Pedras Salgadas, “Agua das Pedras” is a naturally fizzy water bottled in the town of the same name.  There are also small bottling plants in Vidago and Carvalhelhos near Boticas.  

With respect to industry, it is only making its first steps.  In 1960 only 9.8% of the active population belonged to this second sector.  There are small construction industries mainly producing building materials to satisfy the dynamic construction market stimulated by the returning emigrant market, some small shoe and textile industries, and a handful of metallurgy, metal-mechanic, electrical materials, transportation, and food products industries.  Deficiently served by communication routes, since the highway network is relatively sparse; and with a railroad system which is either deficient or non-existent, the territory of the region has not been able to attract the implantation of industries which its interesting mineral potential might justify and which its worrying human situation certainly deserves.  Tras-os-Montes is a complex case of geo-human isolation that requires a vigorous effort of socio-cultural transformation.  Education seems to be one of the essentials, because without an educated, skilled labor force no industry will set up in the region.  An improvement in communications is essential for industries to transport their products quickly to the populated areas.  With neither of these two essential conditions being met at present the situation promises to continue for a long time.

Despite the photo above, industry is not a word associated with Chaves.  There is an “industrial zone” set up on the north side of town, but it consists mainly of warehouses and car repair garages.  What passes for industry in Chaves would be the three brickworks on the south side of town, a medium sized glass factory and several small factories that produce construction blocks.  Chaves is all about services.  Little is actually produced in the area for export.  Even the famous Chaves ham is mainly eaten in the local restaurants.  The largest single employers are the City Hall, the schools, and the hospital.  A typical flaviense either works for these organizations or has something to do with a store, usually a small grocery store or a café.  There are dozens of small grocer’s and cafés run by people approaching retirement age and waiting for someone to pay them money for their investment so they can get out of the business.  The number of establishments with the sign “passa-se” (for rent if you pay me what I invested) in the window is startling.  Almost everyone is ready to rent or sell, if only you make a good offer.   

Recently the town has seen a lot of apartment construction of dubious aesthetic value.  Although the town itself is famous for its gardens, few apartment buildings ever provide for a green area.  Many of the apartments are also empty, having been bought by immigrants working in Northern Europe as an investment. 

We can summarize the main “industries” in Chaves as:

Three brick and tile factories; 1 modest food processing factory in the Industrial Zone; 2 plants for mineral water production in Vidago ( Salus-Vidago [Grupo Unicer} and Aguas Campilho [Grupo Nestlé]); 2 cement block factories (Flaviarte), and several small enterprises for granite cutting. See Graniflavia for information about one of the companies.

Recently, a glass factory, Vitro Chaves, part of a major multinational group, has opened on the road to Vidago.  It is using state of the art technology in glass production and promises to be the first of major industries to locate in the Chaves area.  The opening of the A24 expressway has brought  Chaves within 90 minutes driving time  from Porto and Braga.

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